SEMAINE D'ÉTUDE SUR LE ROLE DE L’ANALYSE ECONOMETRIQUE ETC.

505

lative prices are determined by technology. Demand (i.e. consumers’
 preferences) then determine the relative quantities to be produced.
 Prices, therefore, emerge as a sort of indexes of relative
efforts that society is obliged to put into each single unit of the
various commodities. The two interpretations of prices are indeed
-adically different.
The central part of Professor DoRFMAN’s comment may now be
looked at from this point of view. I am, of course, aware that neoclassical
 economists did deal with problems of production. But I
am raising objections to them when they try Zo extend to produced
commodities the interpretation of prices and quantities which has
>merged from a model for scarce goods. Of course, I am not raising
any objection — on the contrary I am approving — when they
come near to the interpretation of prices and quantities for produced
commodities which I have hinted at above, as for example MARSHALL
himself does in his analysis of the long run, and as indeed LEONTIEF
does as well

KOOPMANS

[ agree with Dr. PASINETTI that the phenomenon of learning ...
production has been insufficiently recognized in economic the-i:
[he same applies to learning in consumers’ choice. As regards
production, I wish to draw attention to a paper by W. Z. HrrscxH,
Firm Progress Ratios, « Econometrica », April 1956, in which some
attempts to quantifv the learning process in production are reported
 on.

PASINETT

[ thank Professor Koopmans for his kind bibliographical sus
zestion. I consider in fact Mr. HirscH’s paper, referring to thc aiiframe
 industty, as one of the many empirical studies which confirm
he necessity of the type of analysis which I am trying to propose.

101 Pasinett: - pag. 123