304 
PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 28 
The case described here is completely analogous to the 
American | French case examined above, and the fact that the 
similarity is formalistic does not render it any less striking. 
If he had no other facts than these, an economist from ano- 
ther planet with no knowledge of the internal structure of the 
model (!) would be tempted to aver that the higher productivity 
in situation II resulted from the larger volume of equipment 
in use. 
But, by hypothesis, we know that such an explanation 
woud be fofally misleading, since the higher productivity in 
situation II is entirely due to the greater value g,=2q, of 
the parameter q. 
If, in this model, productivity is twice as high in situa- 
tion II, this is not because there is twice as much equipment 
available, but because of a factor other than the capitalistic 
structure. The fact that the volume of equipment per worker 
1s twice as high follows from the fact that productivity is twice 
as high while the capital-output ratio is the same. 
In reality, it can be verified from the model that the volume 
of equipment plays an intermediate role, and to clarify the 
issue it should be left out of account. From relations (432-1) 
we then get 
(432-7) 
A=flgXa, g(gXg)] 
whence, because of the first-order homogeneity 
132-8) 
A gF| a , 2. 
x X x 
(") Characterised in particular by equation (432-2). 
11] Allais - pag. 198