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account the greater scarcity of natural resources to be realistic. My
question is how can the Prof. PASINETTI’s model be modified so
as to take into account the limitation of natural resources when
population is growing? From a theoretical point of view such a
question may not be very important but from a practical point of
view it is very important indeed. Thank vou.
DASINET,
[ am not sure whether I agree with Professor ALLAIS on the
point he has made. My impression is that the problems of scarcity
are theoretically very exciting; and yet in practice have not had
‘hat importance which our theories have tended to give them.
The bulk of contemporary economic theory has started from
‘he investigation of the optimum allocation of scarce resources in
an absolutely stationary world; and has then tried to extend the
same concepts to a growing economic system. I am proposing a
‘heoretical model which starts from the opposite end; namely from
an economic system in which there is no scarcity but there is learn-
ng and thus economic growth. Later on — I am hoping — it may
well turn out to be easier to introduce scarce resources into a model
for learning and growth than it has been so far to introduce learning
and growth into a model for scarce resources.
VIAHALANOBIS
[t is my conviction that one has to develop a model in which
‘here is no scarcity to begin with and to go on later to introduce
scarcity. In other words, the first type of model has a kind of
conceptual primacy with respect to the second type of a problem —
t is only a conceptual primacy — the second type of problem may
at each point of time be more important than the other. The first
:ype of approach may be extremely valuable to developing countries.
10] Pasinetti - pag. 125