Competitive Valuation in a Dynamic Input-Output System
Robert M. Solow
This paper is a complement to Morishima's . It generalizes the usual dynamic Leontief model by removing the restrictions that all stocks of capital goods be fully utilized, and it generalizes the usual price theory of such models by allowing prices to change and to be expected to change. The main analytical tool used is linear programming and the well-known relation between the dual variables and competitive shadow-prices. Some conclusions are reached about the ability of a system of current and futures prices to police an efficient intertemporal allocation of resources under stringent simplifying assumptions.