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 startng
 work on the financing side of the model. This means that
we shall study the flow of capital funds between different sectors
 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