Pakistan Institute of Development Economics



The Semi-Input-Output Method: A Comment and An Extension

The semi-input-output method, as presented by Tinbergen [1], is designed solely for the evaluation of investment projects. It tells us, given the criterion used, which sectors or industries should get priority in a development plan. The method does not tell us to what extent the production of an attractive industry should be increased. To solve this problem we need a planning model. The main aim of the present note is to show the possibility of formulating a planning model based on the semi-input-output method. As such, the present paper should be considered as an extension of the article by Tinbergen. Before coming to our main subject however, I would like to make two comments on the paper by Tinbergen [1].

Martin Sanders

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