Balance, Manhattan norm and Euclidean distance of industrial policies for the US

Abstract The design of policy controls oriented to stimulate specific industrial activities highlights a set of problems that involve the choice of the macro variables that make up the policy control, the determination of their aggregate amount as well as their sectoral composition and their inner balance. In a multi-sectoral framework these issues require a careful identification of the relationship between the scale (aggregate value) and structure (inner composition) of both the policy control and policy target. The Macro Multiplier approach identifies the complete set of aggregate scalars that are hidden within the complexity of the multi industry relations and how they are strictly linked with predetermined structures both of the policy control and of the policy target. The application exercise is performed on an Input-Output table for the US for the year 2007, the applied exercise focuses on the government strategies for the "Manufacture of Motor vehicles" sector.