Accession Number : AD0714496

Title :   On the Role of Lags and Capital Formation in Growth Models.

Descriptive Note : Research rept.,

Corporate Author : CARNEGIE-MELLON UNIV PITTSBURGH PA MANAGEMENT SCIENCES RESEARCH GROUP

Personal Author(s) : Truchon,Michel

Report Date : JAN 1970

Pagination or Media Count : 18

Abstract : The report offers some theoretical considerations on the role of capital formation in growth models, and of lags in the deliveries of capital goods as well as other goods. It is argued that the choice for a lag in capital formation is not very crucial when growth is not too fast. As for the lags in the satisfaction of intermediate and final demand it is probably safe to ignore them when they are short enough and growth is not too fast. But a simple method of handling these lags in a dynamic model of the Leontieff type is proposed and thus there is no reason to ignore them. The report also discusses the results of numerical computations done to study the effect on the growth rate of changing the assumptions pertaining to lags and the formation of capital. (Author)

Descriptors :   (*ECONOMICS, MATHEMATICAL MODELS), INDUSTRIES, MONEY, GROWTH(PHYSIOLOGY), PRODUCTION, PROCUREMENT, MATRICES(MATHEMATICS)

Subject Categories : Economics and Cost Analysis
      Operations Research

Distribution Statement : APPROVED FOR PUBLIC RELEASE