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PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA 
and other deviations from competition in the private sector. If 
the private sector did not exist, those problems would certainly 
disappear, but they would be replaced by other serious problems, 
namely the problems of placing rational valuations on the goods 
and services dealt with in the economy. In effect, there is no com- 
petitive sector in a centralized economy; every sector is monopolized 
by one government bureau or another. Whether a centralized eco- 
nomy can, in some manner, simulate the operation of a private 
competitive economy is still open to grave doubt — it has not yet 
seen done. 
Whether the difficulties presented by an independent market 
sector or those resulting from the lack of free market prices are the 
more serious is an empirical problem that I am not in a position to 
resolve. I am, however, more impressed than Professor MAHALANO- 
BIS with the inefficiencies that have been experienced when attempts 
are made to plan an economy without having a frame of reference 
such as is provided by a system of market prices. 
MAHALANOBIS 
I was not referring to a centrally-planned economy of the type 
in which there would not be any market, I was referring to a 
centrally-planned economy in which everything which a govern- 
ment would like to plan, it could, and everything it would like to 
leave to a market, it could again do so. I was also referring to the 
difficulties in an economy in which some particular aspects could 
not be planned, because of institutional factors. 
JOHNSON 
There are two comments about the procedure as outlined by 
Prof. DORFMAN in his ingenious paper. It seems to me that you 
indicate partly in the manuscript and partly in vour discussion 
3] Dorfman - pag. 24