Interindustry economics / by Hollis B. Chenery and Paul G. Clark
- New York Wiley and Sons 1959
- 345 p.
The first part of the book gives an introduction to interindustry theory, starting with the simplest input-output model and developing more complicated systems by successive extensions. The range of possible formulations is illustrated by eight models, four in input output form and four using linear programming, each of which is presented in verbal and algebraic form and in numerical examples. Since we are concerned with empirical studies, the data requirements of alternative models and the realism of underlying assumptions are considered in separate chapters on statistical implementation and em pirical testing. The choice between the input-output and linear programming formulations is shown to depend on the problem and the available data; various combinations of the two approaches are suggested.
The second part of the book discusses the main types of applica tion for which interindustry analysis seems appropriate, illustrating each application with actual instances taken from interindustry ex perience in one or more countries. Here we have drawn heavily on studies made in the United States and Italy, the countries with which we are most familiar. Interindustry results for Japan, Norway, Denmark, Argentina, and Colombia are also discussed, and research under way in other countries is indicated wherever possible. The application given the greatest attention is the study of structural changes accompanying economic growth, a problem to which we feel input-output analysis and linear programming can make a unique contribution.