Dynamic Input–Output and Time

Abstract

The essential time periods in describing the production of dynamic input–output models are defined. An infinitely small basic unit of time is concluded to be in contradiction with the structure of production processes as understood in input–output analysis. The treatment of long productive and long gestation periods in three earlier multiperiod dynamic input–output models (those of Johansen-Aberg-Person, ten Raa, and Aulin-Ahmavaara) is analysed and developed. Two generalized multiperiod dynamic input–output models, one of them closed and the other open, are synthesized. These models combine all the features of the earlier models and a few new ones.