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# A "General" Non-Substitution Theorem along Samuelsonian Lines**

DOI link for A "General" Non-Substitution Theorem along Samuelsonian Lines**

A "General" Non-Substitution Theorem along Samuelsonian Lines** book

# A "General" Non-Substitution Theorem along Samuelsonian Lines**

DOI link for A "General" Non-Substitution Theorem along Samuelsonian Lines**

A "General" Non-Substitution Theorem along Samuelsonian Lines** book

## ABSTRACT

The purpose of this note is to show that Professor Samuelson's path-breaking paper (1951) proving, what amounted to the 'simple' (i.e. with zero interest rate) non-substitution theorem can, with slight modification be generalized to prove the 'general' (i.e. with non-zero constant rate of interest) non-substitution theorem. The main result of the 'general' non-substitution theorem is that given the rate of interest and only one non-produced input, iet us say labour, in the system, the equilibrium relative prices of the goods are determined solely by the conditions of production even if each good is produced under usually assumed neoclassical conditions using many produced inputs beside the non-produced labour. Thus demand plays no role in determining prices under quite commonly assumed conditions.