Let a competitive economy produce commodities of varying durabilities, such that (a) production processes exhibit constant returns to scale;(b) there is one exogenous non-productible factor;(c) there are alternative techniques to produce each good;(d) it is possible to define conversion coefficients for old durable goods in terms of new goods of the same kind.nTheorem. Let (a)-(d) hold. Then I:A long-run equilibrium of input-output coefficients and of prices in terms of wage units is uniquely determined for any preassigned value of the rate of interest. II:It is impossible to have identical techniques at different interest rates.nThis theorem generalizes Samuelson's static and dynamic no substitution theorem.
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