To understand the role of services in the interindustrial system, themes common to explanations in the literature on the increase in prominence of services are explored. Four related themes are suggested by the outcome. Growth in services is associated with increases in the demand for information, in instability, in complexity, and in externalities. These suggest a synthesis of the explanations for subsequent modeling of the role of services by means of the Sequential Interindustry Model (SIM), developed for examining transient processes. Services are viewed as distributive, servicing, and informative, each group with a successively larger information portion relative to materials in its output. System regulation by information flows is presented. With the focus on informative service industries, in response to perturbations these services inform producers, facing imperfect market information, of the adjustments necessary in order to approach equilibrium.
Get full access to this article
View all access options for this article.
References
1.
AntonelliC, 1990, “Induced adoption and externalities in regional diffusion of information technology”Regional Studies2431–40
2.
AsamiYIsardW, 1989, “Imperfect information, uncertainty and optimal sampling in location theory: An initial reexamination of Hotelling, Wever, and Von Thunen”Journal of Regional Science29507–521
3.
BellD, 1973The Coming of Post-industrial Society: A Venture in Social Forecasting (Basic Books, New York)
4.
BeyersWAlvineM, 1985, “Export services in postindustrial society”Papers of the Regional Science Association5733–45
5.
CarterA, 1989, “Input — output recipes in an information economy”Economic Systems Research127–43
6.
ClarkC, 1940The Conditions of Economic Progress (Macmillan, London)
7.
ColeS, 1988, “The delayed impact of plant closures in a reformulated Leontief model”Papers of the Regional Science Association65135–149
8.
DanielsP W, 1985Service Industries (Methuen, New York)
9.
DurandDRomanoffE, 1986, “Capital intensity, time, social accounts and input — output analysis: An Austrian-tinged view”, DP-86-1, Regional Science Research Center, Lexington, MA
10.
FisherA G B, 1935The Clash of Progress and Security (Macmillan, London)
11.
FisherF M, 1983Disequilibrium Foundations of Equilibrium Economics (Cambridge University Press, New York)
12.
FuchsV R, 1968The Service Economy (Columbia University Press, New York)
13.
GershunyJMilesI, 1983The New Service Economy (Praeger, New York)
14.
GoodwinR M, 1951, “Econometrics in business-cycle analysis”, in Business Cycle and National Income A H Hansen (W W Norton, New York) pp 417–468
15.
Growth and Change1991, special issue, “Services industries and economic development: An international perspective”22(4) 1–190
16.
GuileR GQuinnJ B (Eds), 1988Technology in Services: Policies for Growth, Trade, and Employment (National Academy Press, Washington, DC)
17.
IllerisS, 1989Services and Regions in Europe (Gower, Brookfield, VT)
18.
InmanR P (Ed.), 1985Managing the Service Economy (Cambridge University Press, Cambridge)
19.
LeontiefW, 1953, “Structural change”, in Studies in the Structure of the American Economy Eds LeontiefWCheneryH BClarkP GDuesenberryJ SFergusonA RCrosseA PGrosseR NHolzmanMIsardWKistinH (Oxford University Press, New York) pp 17–52
20.
LeontiefW, 1971, “Theoretical assumptions and nonobserved facts”American Economic Review611–7
21.
LevineS HRomanoffE, 1989, “Economic impact dynamics of complex engineering project scheduling”IEEE Transactions on Systems, Man and Cybernetics19232–240
22.
LevittT, 1976, “The industrialization of service”Harvard Business Review5563–74
23.
LichtenbergR M, 1960One-tenth of a Nation (Harvard University Press, Cambridge, MA)
24.
MachlupF, 1980Knowledge: Its Creation, Distribution and Economic Significance. I. Knowledge and Knowledge Production (Princeton University Press, Princeton, NJ)
25.
MaleckiE, 1983, “Technology and regional development: A survey”International Regional Science Review889–125
26.
MayR M, 1973Stability and Complexity in Model Ecosystems (Princeton University Press, Princeton, NJ)
27.
MuleT J, 1983, “Some simulations with a sequential input — output model”Papers of the Regional Science Association51197–204
28.
NoyelleT JStanbackT MJr, 1984The Economic Transformation of American Cities (Rowman and Allanheld, Totowa, NJ)
29.
O'hUllachainB, 1989, “Agglomeration of services in American metropolitan areas”Growth and Change20(3) 34–49
30.
PoratM U, 1977The Information EconomyOffice of Telecommunications, US Department of Commerce, Washington, DC
31.
RitzP M (Ed.), 1954Input — Output Analysis. Technical Supplement (National Bureau of Economic Research, New York)
32.
RomanoffE, 1984, “Interindustry analysis for regional growth and development”Socio-Economic Planning Sciences18343–363
33.
RomanoffE, 1987, “Structure of final producers under changing final demand: Apparel, computers, and other ‘high-tech’”, 34th Annual Meetings, Regional Science Association, Baltimore, MD, November; copy available from the author
34.
RomanoffE, 1989, “Markets for the Boston service industries”, report to Department of Policy Development and Research, Boston Redevelopment Authority; copy available from Regional Science Research Center, Lexington, MA
35.
RomanoffELevineS H, 1977, “Interregional sequential interindustry modeling: A preliminary analysis of regional growth and decline in a two region case”Northeast Regional Science Review786–101
36.
RomanoffELevineS H, 1981, “Anticipatory and responsive sequential interindustry models”IEEE Transactions on Systems, Man, and Cybernetics11181–186
37.
RomanoffELevineS H, 1986, “Capacity limitations, inventory and time-phased production in the sequential interindustry model”Papers of the Regional Science Association5973–91
38.
RomanoffELevineS H, 1990, “Technical change in production processes of the sequential interindustry model”Metroeconomica411–18
39.
RomanoffELevineS H, 1991, “Technical change and regional development: Some further developments with the sequential interindustry model”, in Regional Science, Retrospect and Prospect Eds BoyceD ENijkampPShaferD (Springer, Berlin) pp 251–276
40.
SchoenbergerE, 1988, “Multinational corporations and the new international division of labor: A critical appraisal”International Regional Science Review11105–119
41.
StoneR, 1966Mathematics in the Social Sciences and Other Essays (MIT Press, Cambridge, MA)
42.
Ten RaaT, 1986, “Dynamic input — output analysis with distributed activities”Review of Economics and Statistics86300–310
43.
Ten RaaTChakrabortyDDasT, 1989, “Working capital in an input — output model”Economic Systems Research153–68
44.
UnoK, 1989Measurement of Services in an Input — Output Framework (North-Holland, Amsterdam)
