ABSTRACT
A basic and critical assumption was made in connexion with the technical input-output relationships between all the industries. It was assumed that specific doses of input are required for the output of each industry. If one of the industries is to produce a certain specified output of goods or services it requires certain specified quantities of input from some or all the other industries. Theoretically, there is no reason why the input-output table should not wholly or partly be constructed in physical units. Measurements in physical units would for some purposes be preferable to measurement in monetary units. An input-output table could be constructed in terms of quantities of physical homogeneous commodities where each unit of quantity would represent an amount that can be purchased for one unit of money. In practice, however, an input-output table based on physical units is almost impossible. The adoption of such a method would require a classification of industries for each reasonably homogeneous commodity.
