PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 28 
THE STEADY-STATE MODEL 
I. INTRODUCTION 
The structure of this model as it stood eighteen months ago 
was explained in detail in [7]. A further addition relating to 
labour skills and to the system of education and training on 
which they depend, together with some preliminary results for 
1970, were set out in [5]. Thanks to the generosity of the 
Bank of England and other institutions in the City of London 
mn response to our appeal for research funds, we are now start- 
ng work on the financing side of the model. This means that 
we shall study the flow of capital funds between different sec- 
tors of the economy, the saving behaviour which adds to these 
funds and the preferences of different sectors for holding par- 
‘icular portfolios of assets and claims. 
In this chapter I shall outline the model following the order 
of section I of chapter IT above. I shall not go over every 
point described in [3] [7] but shall try to show how our ideas 
have developed, why we have abandoned certain details that 
appeared in our original presentation and what our intentions 
are for the future. 
2. THE VARIABLES 
The basic variables of the model are brought together in a 
social accounting matrix, SAM for short, which at present 
contains 253 accounts grouped into fifteen classes. The comp- 
{17 Stone - pag. 34