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A simple multisector model with six sectors of production estimation and simulation results for the 1950–1968 period

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In this article a simple multisector model for the Netherlands is presented with six sectors of production. Estimation and simulation results are based on input-output data for the period 1950–1968. Simple log-linear equations (containing both relative price factors and scale factors) are used to describe the demand for (intermediary and primary) factors of production and the demand for final output (including private investment). Sectoral product prices and wage rates are determined within the model. This applies to the generation of disposable income of households as well. Using this simple multisector model, actual economic developments during the 1955–1968 period can be simulated in a reasonably satisfactory way.

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I am indebted to Professor S.K. Kuipers of the University of Groningen, Professor J. Muysken of the University of Limburg and an anonymous referee for their advice and their critical remarks. The Netherlands Organisation for the Advancement of Pure Scientific Research subsidized the multisector modelling project, of which this article summarizes the results (grant number 46–73).

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Van Zon, A.H. A simple multisector model with six sectors of production estimation and simulation results for the 1950–1968 period. De Economist 133, 352–410 (1985). https://doi.org/10.1007/BF01676024

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  • DOI: https://doi.org/10.1007/BF01676024

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