A Note on the Objective Junction for the Pilot Model
Abstract
It is shown that if the objective for a linear programming model is chosen to be the weighted sum of people at different consumption levels, where the weights are equal to consumption levels measured in base-year prices, then the prices of the physical flow model will be comparable to base year prices in that people given the same income less taxes and savings will be able to purchase the same bill of goods; moreover prices will remain invariant if they use their demand functions to buy a different bill of goods. It is also shown that if industries use their respective production to change their inputs to maximize production, this will also increase the objective gross national consumption.
Document Details
- Document Type
- Technical Report
- Publication Date
- Aug 01, 1975
- Accession Number
- ADA016217
Entities
People
- George Bernard Dantzig
Organizations
- Stanford University