1040 PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 
developed Areas were to constitute the principal source of such 
additional investment, how large would this transfer have 
to be? 
The simple dynamic system presented below describes in 
crude aggregative terms the relationships of the magnitude of 
the capital transfer from Developed to Underdeveloped Areas, 
and of the levels of saving and investment in both groups of 
countries to their respective rates of growth. It was designed 
so as to require not more factual statistical information than 
is actually available. The over all capital-output and saving 
ratios of the more and the less advanced countries as well as 
the proportion (but not of course the absolute amount) of the 
Gross National Product of the Developed Areas transferred to 
the Underdeveloped countries are assumed to be constant over 
the ten year period over which we project their future growth. 
Since aggregative capital-output ratios (capital coefficients) 
and saving ratios can be estimated — particularly for the 
Underdeveloped Areas — only within a rather wide margin 
of error and because our expressed purpose is to assess the 
possible effect of changes in the amount of outside capital re- 
ceived by Underdeveloped Areas on their rate of growth, not 
one, but many alternative projections were made, all com- 
puted from the same general formula, but each based on dif- 
ferent hypothetical combinations of the magnitudes of the 
structural parameters enumerated above. 
2. The following set of aggregative variables is used to 
describe the state of the two groups of economics — Developed 
and Underdeveloped — at any particular point of time, #: 
12] Leontief - pag. 2