User:Econterms/sandbox

Figure 1. Example flows between industries or sectors

Synthetic                                                                                                                    Consumer
dye mfg                Yarn mills                       Fabric mills                 Furniture mfg                              Final demand

Product: dyes         Product: dyed yarn                Product: Woven cloth        Product: Sofa                    Expenditure: $530 for sofas and yarn
Revenues:             Revenues:                         Revenues:                   Revenues: $500 from consumers
$20 from yarn mills    $50 from fabric mills             $100 from sofa makers
                      $30 from consumers directly

Defns: Total mfg = the four manufacturing industries; Textile mfg = yarn & fabric industries

$K_{t}=K_{t-1}(1-\delta )+I_{t}(1-\delta /2)-O_{t}$

$K_{t}=(1-\delta )K_{t-1}+(1-\delta /2)I_{t}-O_{t}$

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