The Extended Three-Sector Model

  • Terry L. RoeEmail author
  • D. Şirin Saracoğlu
  • Rodney B.W. Smith


Chapter 5 pointed out the importance of extending the basic three-sector model to accommodate (i) intermediate inputs of production, (ii) a stock of capital defined as a composite of various sector outputs, and (iii) government consumption and revenues. This chapter takes up the task of combining these extensions into a single model – the outcome of which is a model more suited to a broad array of policy analyses. Combining each of these features into a single model, however, has the cost of introducing a number of complications that make presenting and specifying the model more challenging.


Service Sector Capital Stock Industrial Sector Base Solution Intermediate Input 
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Copyright information

© Springer-Verlag New York 2010

Authors and Affiliations

  • Terry L. Roe
    • 1
    Email author
  • D. Şirin Saracoğlu
    • 2
  • Rodney B.W. Smith
    • 1
  1. 1.Department of Applied EconomicsUniversity of MinnesotaSt. PaulUSA
  2. 2.Department of EconomicsMiddle East Technical University (METU)AnkaraTurkey

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