Study of capital requirements for solar energy. Final report, Volume 2. Appendix B: The Hudson-Jorgenson energy/economic model (Long-term interindustry transactions model): a description

The Hudson-Jorgenson Energy/Economic Model - formally known as the Long Term Interindustry Transactions Model (LITM) - is an econometric model of the structure of the US economy. LITM integrates two separate models into one integrated system. These models are the Macroeconomic Model, a growth model incorporating the underlying trends of economic development, and the Interindustry Model, an endogenous coefficient input-output model of the structure of the economy incorporating patterns of expenditure, prices, and production on a sectoral basis. LITM emphasizes the energy system and its role within the economy. Applications of LITM have, therefore, focused on energy, the effect of energy changes on the economy, and the effect of econometric changes on the energy system. In addition, LITM can be used as framework for long term economic projection and structural analysis.