Consumption in the closed von Neumann model

Conclusion This new method for introducing extra consumption into the closed von Neumann model is not without flaw. In addition to requiring collusion by labor, the mechanism increases the dimension of the commodity space so that comparisons between intensity (or price) vectors before and after the introduction of consumption are difficult to make. It is claimed, however, that the method is free from the objection of Malinvaud. The method allows alternative processes for producing extra consumption and provides a mechanism for selecting among the alternative processes. Further, the new method solves the problem of allocating the extra consumption to the labor force.W. W. Cooper, Leif Johansen, and M. C. Lowell made helpful suggestions on earlier darfts of this article. This version is better for their help but any remaining errors are to be credited to my account.