Anticipatory and Responsive Sequential Interindustry Models

The development of sequential interindustry models is built upon the static input-output model by supplementing the structure of production with production chronology. Production chronology is described by production sequences representing different stages of product completion leading to delivery for final use. Inventories and other distinct modeling characteristics are described in terms of possible alternative production behavior leading to two families of sequential interindustry models. In one, anticipatory production is undertaken in anticipation of final demand. In the other, responsive production is in response to final demand. Features of a mixed anticipatory-responsive model are also presented. Discussion of the analytical features of these models, and to their actual and possible application is also presented.