NB Li Feng Seminar is nearly over with big issues outstanding

["John M. Legge" <jlegge@xxxxxxxxxx>]

The discussion of Li Feng's paper seems to have been very thin, in
spite of the importance of his subject.

I developed a two sector, two period model of an economy based on Li
Feng's relationships, and one strong conclusion is that, in a society
with an advanced (=high growth of productivity) and a large less
advanced sector, full employment growth NECESSARILY involved
significant inflation.

If 70% of economy is "low tech" with 2% pgr, and 30% is "high tech"
with 6% pgr, and low tech output is held constant, growth will be 2.6%
real and inflation will be 3.4%.  If real wages are constant, real
profits will rise 29.7%.  Keeping inflation lower than this  requires
an unrealistically rapid transfer of productive resources from the low
to the high tech sector.

EITHER Li Feng has made a conceptual or methodological error which
neither of us have spotted,
OR he has produced a result of major economic significance.

Will at least one of the fully accredited economists on this list
PLEASE look at Li Feng's paper and my model
http://users.bigpond.com/msn/jlegge/InProgress/Li_Feng.xls
and advise what is wrong with Li Feng's work and/or what to do with it

JML