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

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

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