Structural Break,Indivisibilities and Input–Output Analysis

This paper sets up and analyses a model of structural break in the framework of input–output (IO) analysis. The idea of structural break is formalized in terms of an IO model where each commodity can be produced by two alternative technologies; one of which is subjected to technologically specified indivisibility in its level of operation. The analysis of the model consists of suggesting an iterative procedure for computing its solution and developing a necessary and sufficient condition for the existence of solutions. Some results have also been derived on the question of uniqueness of a solution.