Input-Output Models for Planning in a Mixed Economy - A New Approach

The original input-output model as formulated by Professor Leontief was one of a general equilibrium type, popularly known as the closed version, described in condensed form below:

Let x_l, X₂, X₃ be the outputs of three sectors in the economy X_l, x₂ being intermediate sectors and X₃ the household sector. Let X_ij (i, j = 1,2,3) be the flows or deliveries from sector i to j in such a system. Then two sets of balance relations could be set up.