ON THE METHODOLOGY OF INPUT-OUTPUT-ANALYSIS

The basic elements of input output analysis, notably technical Coeffic ients. quantity and value equations. and a total factor productivity g rowth measure. are derived as intermediate constructs when the problem of national income or product determination is directly related to in put and output flow data. By embedding input output concepts in a neoc lassical framework, specification issues are resolved. notably the pro blems of construction of coefficients and of determination of value. C onversely, neoclassical concepts of marginal productivities can be rel ated to a consistent input-output framework of data. Sources of substi tution are identified.