70 SOCIAL SCIENTIST* conditioned not only by the goods he consumes, but also by the activity , which he is forced to perform. Pagano points out that this theme of the relationship between work and welfare has repeatedly recurred in the history of economic thought. For instance, this debate figured in the controversies between Jevons and the Austrian school. However, this debate got subsumed in Walrasian general equilibrium models which treat labour as foregone leisure. In this formulation, labour is treated as any other consumption good and it affects the utility of the worker in exactly the same way as any other consumption good. The analysis of the nature of the labour-process is thus obfuscated. Pagano tries to incorporate the implications of the nature of the labour-process into the Arrow-Debreu-Hahn general equilibrium models and arrives at interesting results. In Pagano's extended model/work is defined as a vector of tasks of different levels of agreeableness or disagreeableness. In traditional models welfare is dependent only upon the set of goods the worker consumes and the leisure time available at his disposal; the profit-maximising output is also welfare-maximising. However, in Pagano's model, welfare is also dependent upon the specific tasks a worker has to do, thereby precluding de-skilling and authoritarian allocation of labour in the production process. If this happens, an enterprise is unable to organise activity in a way which maximises profit. That is, the welfare-maximising output is not necessarily profit-maximising. Thus, welfare-maximising results of general equilibrium theory are conditional upon abstracting from the nature of the labour-process. The other theme which Pagano examines systematically is the analysis of the various methods for coordinating economic activity. He shows that Marx, for instance, was aware that there are two distinctive types of coordination under capitalism, namely, market-type coordination and firm-type coordination; the former is ex poste in nature, and the latter is characterised by its ex-ante nature. As capitalism develops, Marx believed that market-type coordination will be increasingly replaced by firm-type coordination. It is from this process that Marx develops according to Pagano, a concept of 'single-firm socialism' where the coordination of the market is completely replaced by an ex-ante planning process. Pagano argues that while Marx was acutely aware of the social costs of market-type coordination, he tended to underestimate the costs of firm-type coordination which requires enormous informational flows and a bureaucratic structure. However, for Marx this concept of 'single-firm socialism' is transitional, in the sense that the nature of labour under such a system is yet to be transformed. Labour under such a system continues to be a homogenous pain (which is the reason why the law of value continues to operate under socialism) and the organisational structures of socialism are directed at enhancing production rather than attempting to change the nature of labour itself. For Marx, the transformation of the nature of labour occurs only under communism.