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

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distribution by a certain amount, year after year. The criterion was
pursued by means of a system of aid from developed countries to
underdeveloped countries along the lines of a model which is close
to that of Professor LEONTIEF’s. The result was embarrassing. The
criterion implied that one country had to pay, viz., the United States,
and all others (including Canada, Switzerland, Sweden and Australia)
received aid. This unpractical result induced me to change the
criterion to that of aid to countries whose present per capita incomes
are below a certain level in such a way that they will reach a given
« marginal » level within a given period of time. This marginal
level was not considered to be constant over time. An exponentially
increasing function was preferred in view of the consideration that
our present standards for what is marginally acceptable will probably
he below the standards that will prevail after 2= vears.

AT LAIS

If we take as a provisional hypothesis that according to the Cobb
Douelas formulation

KLe(

where Ÿ is real national income. L is labor and C

real capital. then

(") Comments presented in plenary session.
were presented in the cenarate group

he preceeding comments

,1 Leontief - pag. 27