A. S C O P E O F T H E M O D E L Samuelson and Modigliani (hereafter referred to as S-M ) start by conceding a limited acceptance of the Pasinetti results.

Nevertheless, they claim that the same results can be obtained by a neoclassical formulation, and that such a formulation will show the limits to the Pasinetti model by presenting a more general case. The ‘dual’ growth theorem presented by S-M shows that the average product of capital depends on the ratio of the rate of growth to the savings propensities of workers and that all other variables in the system depend on that ratio, and the form of the production function chosen for the analysis.