Structural Change in the United States: Changing Input-Output Coefficients*

The industrial policy discussions of recent iI years have come about in large part as a re $ action to the changing structure of the U.S. I economy. The shifting focus of our economy j| from heavy industry to service activities has I had a significant impact on the types of em ! ployment opportunities that are available, H the associated wage structure and ultimately I the standard of living. T his paper, part of a major study of struc I tural change, focuses on the role of changing a production techniques or input-output coef I ficients in explaining post-war structural £ change. The historical analysis is preceded I by a definition of technical change and a dis U cussion of the differences between endoge $ nous and exogenous technical change. The ft input-output method of describing produc § tion processes and the measurement of tech nical change within an input-output I framework are quickly reviewed. Then changes in input-output coefficients are an alyzed on an industry-by-industry basis for 400 sectors of the economy and several groups of similar sectors. Such detailed I analysis identifies those industries which I have benefitted from recent changes in the I production structure of the economy as well as those which have suffered. The probable iI causes for these changes are also explored I for several prominent industrial sectors.