PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 28 
DORFMAN 
T think we are in very complete agreement whenever there is a 
sound way to approximate the consequences of a particular project. 
When this is possible those consequences should be inserted in the 
calculations and should be evaluated by means of the shadow prices. 
It has been my experience that in practice the only consequences 
that you can estimate reliably are those that are very proximate to 
the project itself. The more remote consequences, which may be 
very important in some instances, are connected with the direct re- 
sults in extremely obscure ways that must be left in the realm of 
judgment, 
MAHALANOBIS 
We are not in disagreement, but I am suggesting, on the basis 
of some of our own experience in India, it would be useful to attach 
a time period for public investments, even in sub-optimization in 
the case of a particular project. Without building in an assigned 
time period, I do not see how we can get a shadow price. If we 
build in a time period, the solution may differ for 5 years or 10 
years or 15 years, then it will be a question at a national level what 
should be the proper period of time to be taken into consideration. 
Whether the decisions are to be implemented by central planning 
or by wise decision in a free economy is a separate question; I am 
simply considering what would be the proper model. 
DORFMAN 
Professor MAHALANOBIS and I have both asserted repeatedly 
that we are in agreement, but now I begin to feel that also we are 
not understanding each other very well. Professor MAHALANOBIS 
37 
Dorfman - pag. 32