Econometrica: Jan, 1963, Volume 31, Issue 1

Decomposability, Near Decomposability, and Balanced Price Change under Constant Returns to Scale

https://doi.org/0012-9682(196301/04)31:1/2<67:DNDABP>2.0.CO;2-W
p. 67-89

Franklin M. Fisher

The paper extends the results of the Solow-Samuelson article [12], reinterpreting their balanced growth model in terms of prices rather than output and weakening their monotonicity assumption to consider cases in which the production system is decomposable, completely decomposable, or approximates one of these. It is shown, among other things, that results similar to those obtained by Simon and Ando [11] and Ando and Fisher [1] for linear systems hold for the asymptotic behavior of this sort of nonlinear system of difference equations.