SEMAINE D'ÉTUDE SUR LE ROLE DE L’ANALYSE ECONOMETRIOUE ETC. 383

With regard to one remark made by Professor ALLAIS, I should
make clear I did not prove, in the paper presented here, that the
interest rate had to be larger than the growth rate. The inequality
between the two rates was introduced as a sufficient condition for
a general result concerning optimal programs. However, in most
particular cases I considered here, the rate of interest is larger than
the rate of growth all the time.

ALLAIS

The point is, if this proposition cannot be proved in a genera.
way, there cannot be an optimal path with the condition : smaller
than g. I therefore cannot see the meaning of the preceding proposition.


AAT INVATIT

In this paper, I introduced the condition only because I was
unable to find a result without it. But I may remark incidentally
that a finite horizon was present in the cases where optimal programs
 were found with an interest rate smaller than their
orowth rate

KOOPMANS

Supplementing Professor MALINVAUD’s remarks I do not think
that the response to the difficulties I have pointed out should be to
drop the infinite horizon. I think it you make a very large horizon,
the same difficulty that shows itself starkly with an infinite horizon
will also show itself somewhat less starkly but in an equally disturbing
 manner with a verv large finite horizon. Thus the infinite

Malinvaud - pag. 83