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

fa.

In the neighborhood of a given situation the fundamental
relationship (117-19) is derived from the assumption according
to which the relation

110-1)

SR, _p Ly
Re yy

is derived from (117-10) in the case of a dynamic process and
applies when the use of primary factors (services rendered ™-labour
 and natural resources) over time is being studied.
It can thus be seen that the fundamental relationship
'117-19) of the present study results simply from the assumption
of the existence, over a large range, of a valid index R of real
national income at factor cost when conditions of optimum
allocation of resources in the Paretian sense are satisfied

Allais - pag. 5,