1. 1Among innumerable works in the genre, I rely particularly upon the contributions of Professors Arrow, Samuelson and Solow to theReview of Economic Studies(June, 1962) [1], [6] and [7]; J. E. Meade [4]; B. S. Minhas [5]; R. M. Solow [8] and on Professor Solow's Marshall Lectures. I have also benefitted very much from conversation with Dr. C. von Weizsacker, a rare neo-classical who has the candour to explain clearly what his assumptions are.
2. 2This is once more made clear in his latest contribution to the subject [8] Lecture III.
3. 3When the series is represented by a curve relating the rate of profit to the real-wage rate, the economies with the same physical capital, on Professor Samuelson's assumptions, lie on a straight line and those with the same rate of profit are at a corner, see [6]. If the curve is drawn in terms of the real-capital/labour ratio, the lines appear as corners and the corners as lines.
4. 4Samuelson's [6] trick of measuring each stock of capital in terms of its own product is of no use, because the physical composition of gross output and the pattern of prices are both different in each economy. The elasticity of Samuelson's curve in wages and the rate of profit does not show the relative share of wages and profits in the value of output. I am indebted to von Weizsacker for the mathematical statement of this point.
5. 5For this story to be told the book of blue-prints must show methods of producing capital goods with a low capital/labour ratio. See Uzawa [8].