Artha Vijnana: Journal of The Gokhale Institute of Politics and Economics

Vatsala Mukerji

Abstract

THE growth of the total output or total national income is usually attended by different rates of growth in the different sectors of the economy, giving rise to changing ratios of sectoral outputs. It is attempted here to Construct some simple models to represent the growth of total income through unequal growths of sectoral incomes, only two sectors being taken for the sake of simplicity. The two sectors considered are the agricultural sector S₁ and the non-agricultural sector S₂. The models can be generalized to the case of more than two sectors.

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Vatsala Mukerji

Abstract

The usual deterministic models for the growth of output in a sector over time are,

(1) the linear model X_t= a + bt the assumption being that there is a constant addition of b units in every period of unit time or that the growth is additive.

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