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

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regions. This means that each project can be presented in
R? alternative versions. With the aid of our model we can
determine the additional incomes it creates in the R regions
and hence also the weighted sum of regional incomes representing
 the increase in welfare. We can also determine the total
capital to be invested in the bunch of projects consisting of the
investment of one million in the international sector plus the
investments in the regional and national sectors. The method
to be used is that we put equal to zero the investment in all
other international sectors. I have proposed to speak of the
semi-input-output method [1]. Thus the income-capital ratio
for all R? versions of the project can be found. The version
with the highest ratio is the « best version ». We may now
make a list of the ratios obtainable for the best version of investment
 in each of the international sectors.
The use we can make of this list is that we select the international
 sector with the highest ratio and invest all available
capital in this sector. With regard to international sectors this
will mean complete specialization. To be sure there will be
also additions to production in regional and national sectors
involved.
This complete specialization will be avoided whenever we
add restrictions to the additional quantities that can be exported
in any one international sectors. Whenever such a bound has
been reached, the second-best international sector gets its turn.
Complete specialization may also be avoided if we introduce
an element of decreasing returns, not yet discussed, but realistic
n agriculture and mining. It is not to be expected that it will
be avoided by the introduction of indivisibilities, or increasing
returns. But it may be avoided also if instead of restrictions
to exportable quantities we introduce a price level of export
goods negatively depending on quantities produced "z7
The introduction of non-linear inputs brings in the possibility
 that the effects on regional income of two projects are not

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