Introduction

An input–output table is a representation of the production side of an economy; it provides a picture or numerical description of the size and structure of that economy in terms of interactions among producing and consuming components. Probably the most detailed and accessible source of data on economic transactions, it has been a rich source of information for those interested in the study of economic structure.

Transaction flows are central to Richard Stone's pioneering work in national accounting and the development of social accounts. This chapter follows that tradition, as here also the emphasis is on transactions. However the subject of the chapter is changes in transactions rather than the measurement of flows. Of course, Stone was also concerned with changes in input–output tables, the development of the RAS adjustment method being but one piece of evidence for this.

In another way this chapter follows the spirit of Stone's research. It is an implicit assumption of this chapter that an understanding of how economies change and develop over time is enhanced by consideration of the changes in detailed input–output and social accounting matrices, and that this must entail examining actual tables. To the extent that this chapter provides such an example, it follows the tradition of empirical investigation demonstrated so ably in the writings of Richard Stone.

The study of economic structure using input–output tables has followed two paths, which already appear to be related.