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MAHALANOB!

I have a small question. i believe, at the beginning of your
paper you point out that we are concerned not so much with €
choice of public investment in a completely planned economy but
in an economy in which there is both a private sector, and a public
sector, and these features raise many difficulties; about this T completely
 agree. Have the implications of this complicating factor
been taken into account in vour n---DORFMAN



The presence of the private sector is a helpful factor as well as
a complicating one. It helps in the preparation of public investment
programs and their evaluation by providing a set of market prices
for the resources and factors of production needed to construct the
public investment projects and also in many cases for the goods and
services produced by the public investment. The market prices of
the factors required to produce a public investment are, of course,
measures of the worths of the goods and services that those factors
could produce if they were not devoted to the public investment.
Therefore, they measure real cost of the project. The market prices
of the goods and services produced by the project measure the

Dorfman - pag.
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