Alternative Treatments of Imports in Input-Output Models: A Canadian Study

Abstract

Three alternative input-output models differing in their treatment of competitive imports are formulated and relations between them examined. The Leontief matrices and their inverses corresponding to the three models are then calculated using the same basic data relating to a 42-industry classification of the Canadian economy in 1949. The predictive performance of these models is tested with reference to 1956. The relative stability of the relations postulated in these models is then discussed on the basis of the results obtained.