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Information, Interindustry Dynamics, and the Service Industries

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  • E Romanoff
  • S H Levine

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.

Suggested Citation

  • E Romanoff & S H Levine, 1993. "Information, Interindustry Dynamics, and the Service Industries," Environment and Planning A, , vol. 25(3), pages 305-316, March.
    • Handle: RePEc:sae:envira:v:25:y:1993:i:3:p:305-316
    DOI: 10.1068/a250305
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    References listed on IDEAS

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    1. Thijs ten Raa, 2009. "Dynamic Input–Output Analysis with Distributed Activities," World Scientific Book Chapters, in: Input–Output Economics: Theory And Applications Featuring Asian Economies, chapter 13, pages 197-224, World Scientific Publishing Co. Pte. Ltd..
    2. Victor R. Fuchs, 1968. "The Service Economy," NBER Books, National Bureau of Economic Research, Inc, number fuch68-1, May.
    3. Romanoff, Eliahu, 1984. "Interindustry analysis for regional growth and development: The dynamics of manpower issues," Socio-Economic Planning Sciences, Elsevier, vol. 18(5), pages 353-363.
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    Cited by:

    1. Stéphane Hallegatte, 2012. "Modeling the roles of heterogeneity, substitution, and inventories in the assessment of natural disaster economic costs," Post-Print hal-00802050, HAL.
    2. Henriet, Fanny & Hallegatte, Stéphane & 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. 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.
    4. Johannes Traxler, 1998. "The Internet, industrial location, and geographic markets," ERSA conference papers ersa98p345, European Regional Science Association.

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