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PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 2§

duction fo this colloquy and I feel great sympathy with what he
says. To quote him: « The application of economic analysis and
recent experiences of various economic systems have by now given
sufficient proof that modern or underdeveloped agricultures cannot
be subjected to agricultural development plans that impede necessary
 adjustments, result in exploitation of the farm population, fail
to recognize the potential high returns to certain investments in agriculture,
 or restrict the potential gains from international specialization
 in production, but development plans must be consistent
and efficient in the use of scarce resources and not result in undesirable
 economic situations. » I would say this judgment is valid
not only for agriculture but also for industry and for the whole
economy, and I hope that we could stress this in our final statement.

HAAVELMO

I would like to ask Prof. Jomnson if the need for the kind of
research that he has suggested, might not be somewhat different in
areas with a low density of population and in areas with a high
density of population? It seems to me that the kind of production
policy needed may be different in the two cases.

WOLD

What I want to say has partly been said by Prof. Arras. First
of all I wish to compliment Prof. JounsoN for his superb paper,
and to emphasize that his general conclusions make important ma-“erial
 for our final statement.
The eminent qualities of Prof. JoxNsoNn’s paper invite to general
comments on the position of present day econometrics.  Economerics
 is still a young science. Speaking broadly, there has been a
gradual evolution and expansion from micro to macro approaches.
Demand analysis and the ‘assessment of cost functions and pro-"16]

 Johnson - pag. 52