Accounting for technical substitution in the input-output model

Input-output analysis is a general equilibrium economic model that is being applied with increasing frequency to situations in which the input patterns of various economic activities are bound to change. Applications of the model in this context unduly strain the model's customary assumption of fixed coefficients, an assumption which precludes the substitution of inputs in production processes. The focus here is on the development of a general procedure for incorporating input substitution under various sets of conditions into the input-output model.