This book deals with the methods and practical uses of regression and factor analysis. An exposition is given of ordinary, generalized, two- and three-stage estimates for regression analysis, the method of principal components being applied for factor analysis. When establishing an econometric model, the two ways of analysis complement each other. The model was realized as part of the 'Interplay' research project concerning the economies of the European Common Market countries at the Econometrics Department of the Tilburg School of Economics. The Interplay project aims at: a. elaborating more or less uniformly defined and estimated models; b. clarifying the economic structure and the economic policy possible with the linked models of the European Community countries. Besides the model for the Netherlands published here, the models for Belgium, Italy, West Germany and the United Kingdom are ready for linking and for publishing later on. The econometric model presented in this book and upon which the Interplay model is based comprises eleven structural and twenty-one definitional equations; it is estimated with ordinary, two- and three-stage least squares. The analysis of the model is directed at eliminating multicollinearity, accor ding to D.E. Farrar's and R. Glauber's method. In practice, however, complete elimination of multicollinearity leads to an exclusion of certain relations which is not entirely satisfactory. Economic relations can be dealt with more fully by analyzing the variables involved in detail by factor analysis. In this study factor analysis is also a suitable method for a comparative analysis of different periods."

In this book input-output analysis is applied to the regional economy of The Netherlands. The re ults are based on a publication of The Netherlands Central Bureau of Statistics: Regional Accounts 1960, The Hague, Staatsuitgeverij, 1968. Dr. Schilderinck and Mr. Sinner call special attention to the structure which are concealed in the cumulated primary costs of the final demand categories. Part I of the book deals particularly with a survey of this feature of input-output analysis. Part II starts with comparing the production structure of each industry in the eleven provinces of The Netherlands by means of semi-regional tables. Next, authors analyse the structure of the induced income resulting from a surplus or deficit of each industry on current final transactions per province. Thanks to its methodical elaboration the book is a valuable guide to those confronted with the problems of regional economic analysis. J. J. J. Dalmulder Contents FOREWORD IX LIST OF TABLES XI PART ONE: THE INPUT-OUTPUT TABLE AS AN INSTRUMENT OF ANALYSIS 1 List of symbols 3 1. Introduction 5 2. The input-output table 9 3. Coefficients of the input-output table 11 3. 1 Technical coefficients 11 3. 2 Interdependence coefficients and cumulated production coef- cients 12 3. 3 Input coefficients of cumulated production 15 3. 4 Input coefficients of final demand 17 4. The example of a simple economic system 20 4. 1 The input-output table and the technical coefficients 20 4.