Aggregation in Input–Output Models: a Comprehensive Review, 1946–71

Abstract

This paper consists of two parts. The first surveys the theory of aggregation that had been developed in Input–Output analysis up to 1971. This review provides a comprehensive portraft of the development of aggregation theory in relation to the concepts of aggregation bias and consistency. The second part surveys the theory of aggregation that has evolved through the extension of the concept of entropy and information theory. It reviews the theory of correlational measures of aggregation and the linear aggregation coeficient. The objective of the paper is to summarize studies of various authors who have demonstrated how the trade-offs between the smaller order of aggregation and the infusion of aggregation bias may be minimized with a view toward developing an optimal aggregation system in Input–Output models.