1062 PONTIFICIAE ACADEMIAE SCIENTIARVM: SCRIPTA VARIA - 2¥F 
is that there is a correlation over time and in space between three 
quantities: production, labor and capital. But it is impossible to 
derive the conclusion that this function is valid over the whole range 
of variation: it holds for the very restricted domain of data relating 
to some Western developed countries. Thus, I could accept the 
Leontief calculation, but only on two conditions. The first one would 
be the replacement of b by b/B with BG equal to 0.2 in equation 2. 
The second would be to say that this is a very tentative calculation 
and that it is by no means certain that the results would remain as 
valid as they may be for the West, 
HAAVELMO 
This exposé was very clear, there is little possibility of misunder- 
standing. I am actually asking a question about an alternative hy- 
pothesis, and whether the author has considered it. If you would 
kindly turn to page 5, equation (6). I just wonder whether LEONTIEF 
has considered the possibilities that equation (6) might have the alter- 
native form I,(#)=1,[ Y,(#) + H(#)]. That is to say, that investment 
in the region is a fraction of regional income including what they get 
from abroad. I think we see the possible implications. It means, for 
example, that domestic savings could be negative if H is verv large. 
LEONTIEF 
I have not tried to perform an alternative set of computations 
based on Professor HAAVELMO’s suggestion that the capital inflow into 
a developing country be treated as a part of its total current income 
of which a fixed fraction be allocated to productive investment. On 
this assumption a still larger capital transfer from developed into the 
less developed countries would be required to narrow down the gap 
between the growth rates in their respective national incomes. 
If T mav return with just one more remark to Prof. ALLAIS 
13] Leontief - pag. 24