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501 0N 
MAHALANOB! 
I have a small question. i believe, at the beginning of your 
paper you point out that we are concerned not so much with € 
choice of public investment in a completely planned economy but 
in an economy in which there is both a private sector, and a public 
sector, and these features raise many difficulties; about this T com- 
pletely agree. Have the implications of this complicating factor 
been taken into account in vour n--- 
DORFMAN 
The presence of the private sector is a helpful factor as well as 
a complicating one. It helps in the preparation of public investment 
programs and their evaluation by providing a set of market prices 
for the resources and factors of production needed to construct the 
public investment projects and also in many cases for the goods and 
services produced by the public investment. The market prices of 
the factors required to produce a public investment are, of course, 
measures of the worths of the goods and services that those factors 
could produce if they were not devoted to the public investment. 
Therefore, they measure real cost of the project. The market prices 
of the goods and services produced by the project measure the 
Dorfman - pag. 
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