ABSTRACT
This chapter presents a group of variations which add a temporal dimension to the otherwise static model. It provides a conceptual foundation for temporal input-output and reviews the experiences with the models. Dynamic equilibrium is defined as that set of conditions where, given the level of exogenous variables, there is no tendency for the endogenous variables to be at any other levels at that point in time. A stationary state is a unique dynamic equilibrium where the exogenous variables are constant. Other than the fact that this equilibrium is, at the same time, a dynamic equilibrium and a static equilibrium over time, the stationary state is largely an academic curiosity. Disequilibrium is basically a dynamic concept indicating that the levels of at least some variables are different than those indicated by the dynamic equilibrium equations. Disequilibrium may be introduced by allowing for some potential divergence from the dynamic equilibrium conditions and those actually occurring at any time.
