A model of balanced growth for interindustry economy of the region

The article considers an extended version of a closed dynamic input-output model of the region in a discrete formulation. Based on real data of the developed input-output base table for the Republic of Buryatia we have formed norm coefficients for input-output model by aggregation. The dependence of the variables of final consumer demand on household income and the gross output vector is modeled. The resulting square specific household consumption matrix is combined with a non-degenerate matrix of direct production cost coefficients. The “integral” matrix is productive and non-degenerate, and the inverse matrix for it represents the total combined costs in the regional economy. We have estimated the coefficients of marginal capital-output ratio for establishing the vector of industrial investments. By multiplying the inverse matrix of total costs with the special matrix of marginal capital-output ratio, we obtain a closed model of dynamic input-output balance. As a result of solving the obtained characteristic equation the balanced growth rate of production and the eigenvector of gross output of the certain structure are identified. It is possible to determine a balanced growth path of the regional interindustry economy for various scales of products and services.