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Information, interindustry dynamics, and the service industries

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  • E Romanoff
  • S H Levine
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    Abstract

    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.

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    Bibliographic Info

    Article provided by Pion Ltd, London in its journal Environment and Planning A.

    Volume (Year): 25 (1993)
    Issue (Month): 3 (March)
    Pages: 305-316

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    Handle: RePEc:pio:envira:v:25:y:1993:i:3:p:305-316

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    Web page: http://www.pion.co.uk

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    Cited by:
    1. Barker, Kash & Santos, Joost R., 2010. "Measuring the efficacy of inventory with a dynamic input-output model," International Journal of Production Economics, Elsevier, vol. 126(1), pages 130-143, July.
    2. Henriet, Fanny & Hallegatte, St├ęphane & Tabourier, Lionel, 2012. "Firm-network characteristics and economic robustness to natural disasters," Journal of Economic Dynamics and Control, Elsevier, vol. 36(1), pages 150-167.
    3. Hallegatte, Stephane, 2012. "Modeling the roles of heterogeneity, substitution, and inventories in the assessment of natural disaster economic costs," Policy Research Working Paper Series 6047, The World Bank.
    4. Johannes Traxler, 1998. "The Internet, industrial location, and geographic markets," ERSA conference papers ersa98p345, European Regional Science Association.

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