Full text: Study week on the econometric approach to development planning

as British exports. In our complete matrix, class I contains 
at present thirty-one commodities. 
Class 2 relates to the productive activity of the thirty-one 
industries which produce these commodities. It can be seen 
from row 2 that the whole output of these industries, £44,272 
million, flows into class 1. The cost of producing this output 
is shown in column 2, thus: nearly half the total cost, £20,943 
million, relates to the intermediate inputs, namely raw mat- 
erials, semi-finished products and fuels, absorbed in produc- 
tion; £638 million represent indirect taxes (less subsidies), 
which we charge direct to industries; £18,855 million represent 
factor incomes, namely wages, profits etc., paid out by the 
industries; £1,786 million represent depreciation, of which 
£1,200 million correspond to the value of assets estimated to 
have been scrapped during the year and the balance, £586 
million, is available to finance extensions, that is additions to 
the stock of assets; - £136 million is not a real entry, but cor- 
responds to the residual error which appears in the official 
accounts; finally, £2,186 million represent complementary im- 
ports, that is to say imports of products which are either not 
produced in Britain, like crude oil and raw cotton, or pro- 
duced there in relatively small quantities, like raw wool. 
We have adopted this distinction between commodities and 
industries because there is not a one-to-one correspondence be- 
tween the two concepts. Most of our basic data make use of 
the distinction and so it is convenient to follow it in setting out 
these data, although for input-output analysis we get rid of 
it and make use of a table which shows the commodities needed 
to produce commodities, as is explained in detail in [9]. 
Class 3 relates to consumers’ goods and services, or private 
consumption. These goods and services are classified in SAM 
under forty headings, corresponding broadly to a shopping 
list. In this form they lend themselves better to demand analy- 
sis, but they still have to be related to products in the industrial 
classification: again, there is no one-to-one correspondence 
1 | Stone - pag. 

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