The Balanced Growth Frontier

  • A. R. G. Heesterman
Part of the International Studies in Economics and Econometrics book series (ISEE, volume 3)


Suppose the time path of non-produced goods satisfies
$$c{a_t} = \left({1 + \lambda} \right)c{a_{t - 1}}$$
for all t, e.g. a proportional expansion of the supplies of all non-produced goods. Here λ will be a fairly small positive1 number, say λ =0.05 for 5% growth. We assume that the model satisfies the requirement of limitation even without considering any limits on produced capital goods, e.g. to any vector car corresponds a limiting frontier of final output vectors, which could not be surpassed due to the limited availability of non-produced goods, even if an infinite stock of all capital goods were available.


Capital Stock Capital Good Efficiency Frontier Full Employment Economic Planning 
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Copyright information

© D. Reidel Publishing Company, Dordrecht, Holland 1971

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  • A. R. G. Heesterman

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