ABSTRACT
It has been pointed out often enough (see, for instance, Samuelson 1983:12) that reswitching cannot occur between techniques both of which have ‘equal organic compositions of capital’, i.e. price-ratio invariance and, therefore, linear wage-profit frontiers. It has even been proved (Brown and Chaing 1976; see also Brown 1980) that capital aggregation is assured, and an aggregate production function can be built up, if the labour shares in all sectors are equal, i.e. if all relevant techniques have the ‘equal organic compositions’ property. But Baldone (1984: section 4) observes in the course of an interesting article that, flukes aside, such techniques cannot switch even once. The object of the present chapter is to reinforce and to generalize this striking point, the importance of which has not yet received sufficiently widespread recognition and acknowledgement.
