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 received
 by Underdeveloped Areas on their rate of growth, not
one, but many alternative projections were made, all computed
 from the same general formula, but each based on different
 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