Introduction

The structure of an economy comprises its so-called fundamentals, of which there are three: the technology available to producers, the given endowments and the preferences of the consumers. Structural economics provides an accounting framework for these fundamentals and employs it to analyse the structure of an economy in terms of output potential and other performance measures. The analysis takes place at two levels. At the base level the fundamentals themselves are investigated, such as the determination of technical coefficients. At a more applied economic level issues are analysed, such as the effects of policies on industrial activity and the well-being of consumers. The first realm is left to national accountants and the second to economists, but this division of labour ignores some fascinating feedbacks. Economic rules foreshadow the ways we should organize our accounts and represent the structure of an economy. This book targets the interface of the two realms of structural economics.