ABSTRACT
This chapter reviews the relationship of aggregate Keynesian analysis and economic base analysis to input-output methodology. In fact, the empirical implementation of the interregional framework presents a daunting problem of data collection and manipulation. A number of alternative suggestions have been proposed for dealing with the problem of limited regional and interregional trade data. The use of regional input-output models for forecasting purposes has not been a striking characteristic of the majority of the studies completed thus far. The methods of constructing regional input-output tables may be summarized into three broad categories: the use of unaltered national coefficients; the use of adjusted national coefficients; and the use of direct survey information. There are very rare instances in which we come across an industry producing just one commodity; concomitantly, many commodities are produced in more than one industry. Thus, interindustry coefficients rarely represent commodity inputs in the productive process and certainly do not represent inputs into processes producing single commodities.
