Proportionality Principle: Difference between revisions
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Definition
Proportionality Principle. One of the three fundamental principles underlying the I-O accounts. Under this principle, all inputs consumed by an I-O industry are a linear function of the level of output - that is, the inputs consumed vary in direct proportion to output and there are no economies of scale.
The other two principles are Consistency Principle and Homogeneity Principle.[1]
References
- ↑ Concepts and Methods of the US Input-Output Accounts. K.J.Horowitz, M.A.Planting, 2009
