structural economics. measuring change in technology, lifestyles, and the environment.: faye duchin,...

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Book reiews 331 now forecast a levelling off by the middle of the century). Understanding past change as adaptive — a different paradigm from the ‘present trend scenario’ of degradation estimated by such organ- isations as UNEP — may offer more than an ‘odd glimmer of hope’. Michael Mortimore Drylands Research, 17 Market Square, Crewkerne TA18 7LG, UK E-mail: [email protected] PII:S0921-8009(00)00281-0 Structural Economics. Measuring change in tech- nology, lifestyles, and the environment. Faye Duchin, Island Press, 1998, p. 220, ISBN 155-963-6068 With this book Faye Duchin (FD) introduces an economic approach, which she calls structural economics, and demonstrates how it can be ap- plied to analyse contemporary problems related to changes in technology, lifestyles and the environ- ment. Structural economics is initially rooted in the input-output (I-O) analysis of Wassily Leon- tief with whom FD collaborated at the United Nations University. The approach also draws on Richard Stone’s extension of the I-O analysis into social and demographic areas; FD combines these roots with insights of other disciplines, from life cycle analysis to anthropological studies. Following a general introduction to the themes of the book in Chap. 1, the I-O analysis and industrial classification schemes are introduced in Chap. 2, where it is also argued that a combina- tion with technological case studies is important for concrete analyses. Chap. 3 explains how the I-O analysis can be extended through subdividing the household sector and through combining the I-O tables with natural resource accounting and material balances. Chap. 4 contains a repetition, as structural economics and I-O analyses are reintroduced, albeit in a more technical way. Sim- ilarly, Stone’s social accounting matrix is ex- plained more thoroughly and technically in Chap. 5, of which the main part consists of applications of social accounting in Indonesia. Chap. 6 is a technical exposition of the I-O models with exten- sions, while Chaps. 7 and 8 concern Indonesia, including a general description of the society, results from I-O analyses and social accounting, and finally a scenario regarding lifestyle changes. A short final Chap. 9 presents general considerations. FD seems to have two main intentions with the book; the first is to claim the relevance and value of extended I-O analyses in a world of neoclassi- cal dominance. Instead of concentrating on de- ducing proofs and testing hypotheses, FD argues that real world problems require problem-ori- ented analysis, willingness to cross disciplinary boundaries and imagination to construct solu- tions, for instance, based on scenario analyses. I-O analyses have been criticised by neoclassicists for the use of ‘fixed coefficients’ that do not respond to price changes, but FD considers that it is a strength to deal with discrete and explicit changes in structures instead of marginal reac- tions to prices. That coefficients are not price sensitive does not imply that they are fixed; much research is devoted to the projection of parame- ters corresponding to alternative scenarios. I agree with FD’s committed defence of the I-O analyses and her rejection of the neoclassical focus on price mechanisms. However, I find it difficult to follow her arguments maintaining that other dynamic theoretical considerations inform the analyses be- yond the application of the fixed structures in the tables and the projection of parameters. FD’s second intention is to present her own contribution to a renewal of the I-O models through developing the model of the household sector. She uses the concept of lifestyle to describe a group’s shared pattern of behaviour regarding food, housing, etc., and argues that the mix of lifestyles in society both influences and reflects what is produced, how much and how it is pro- duced. Thus the power of the model could be increased, if lifestyles were specified directly, in parallel with the production specification. Her idea is that households should be classified just as industries are. This relates to Stone’s social ac- . .

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Page 1: Structural Economics. Measuring change in technology, lifestyles, and the environment.: Faye Duchin, Island Press, 1998, p. 220, ISBN 155-963-6068

Book re�iews 331

now forecast a levelling off by the middle of thecentury). Understanding past change as adaptive— a different paradigm from the ‘present trendscenario’ of degradation estimated by such organ-isations as UNEP — may offer more than an‘odd glimmer of hope’.

Michael MortimoreDrylands Research,17 Market Square,

Crewkerne TA18 7LG,UK

E-mail: [email protected]

PII: S 0921 -8009 (00 )00281 -0

Structural Economics. Measuring change in tech-nology, lifestyles, and the environment.Faye Duchin, Island Press, 1998, p. 220, ISBN155-963-6068

With this book Faye Duchin (FD) introducesan economic approach, which she calls structuraleconomics, and demonstrates how it can be ap-plied to analyse contemporary problems related tochanges in technology, lifestyles and the environ-ment. Structural economics is initially rooted inthe input-output (I-O) analysis of Wassily Leon-tief with whom FD collaborated at the UnitedNations University. The approach also draws onRichard Stone’s extension of the I-O analysis intosocial and demographic areas; FD combines theseroots with insights of other disciplines, from lifecycle analysis to anthropological studies.

Following a general introduction to the themesof the book in Chap. 1, the I-O analysis andindustrial classification schemes are introduced inChap. 2, where it is also argued that a combina-tion with technological case studies is importantfor concrete analyses. Chap. 3 explains how theI-O analysis can be extended through subdividingthe household sector and through combining theI-O tables with natural resource accounting andmaterial balances. Chap. 4 contains a repetition,as structural economics and I-O analyses arereintroduced, albeit in a more technical way. Sim-ilarly, Stone’s social accounting matrix is ex-

plained more thoroughly and technically in Chap.5, of which the main part consists of applicationsof social accounting in Indonesia. Chap. 6 is atechnical exposition of the I-O models with exten-sions, while Chaps. 7 and 8 concern Indonesia,including a general description of the society,results from I-O analyses and social accounting,and finally a scenario regarding lifestyle changes.A short final Chap. 9 presents generalconsiderations.

FD seems to have two main intentions with thebook; the first is to claim the relevance and valueof extended I-O analyses in a world of neoclassi-cal dominance. Instead of concentrating on de-ducing proofs and testing hypotheses, FD arguesthat real world problems require problem-ori-ented analysis, willingness to cross disciplinaryboundaries and imagination to construct solu-tions, for instance, based on scenario analyses.I-O analyses have been criticised by neoclassicistsfor the use of ‘fixed coefficients’ that do notrespond to price changes, but FD considers that itis a strength to deal with discrete and explicitchanges in structures instead of marginal reac-tions to prices. That coefficients are not pricesensitive does not imply that they are fixed; muchresearch is devoted to the projection of parame-ters corresponding to alternative scenarios. I agreewith FD’s committed defence of the I-O analysesand her rejection of the neoclassical focus on pricemechanisms. However, I find it difficult to followher arguments maintaining that other dynamictheoretical considerations inform the analyses be-yond the application of the fixed structures in thetables and the projection of parameters.

FD’s second intention is to present her owncontribution to a renewal of the I-O modelsthrough developing the model of the householdsector. She uses the concept of lifestyle to describea group’s shared pattern of behaviour regardingfood, housing, etc., and argues that the mix oflifestyles in society both influences and reflectswhat is produced, how much and how it is pro-duced. Thus the power of the model could beincreased, if lifestyles were specified directly, inparallel with the production specification. Heridea is that households should be classified just asindustries are. This relates to Stone’s social ac-

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Page 2: Structural Economics. Measuring change in technology, lifestyles, and the environment.: Faye Duchin, Island Press, 1998, p. 220, ISBN 155-963-6068

Book re�iews332

counting matrix, but with a different approach ofclassification. Instead of focusing on a few vari-ables such as income, education and age, andestablishing a top-down categorisation as a sym-metrical tree structure, FD suggests the use ofbottom-up approaches, which can capture morecoherent lifestyle groups. As an example she refersto a cluster analysis carried out by market ana-lysts in the USA, and in the chapters on Indonesiashe indicates how such groups could be defined.However, the idea of modelling lifestyles remainsrudimentary, and unfortunately, I do not find itconvincing. I agree that there is a need to explorelifestyles further in relation to both technologicalchanges and the environment, but I remain scepti-cal about the analogy between industries andhouseholds, and imagine that social structures aretoo fluid to be successfully expressed in extendedI-O tables. It is questionable that FD’s approach,necessitating substantial data requirements, meritsthe costs. Strategies such as case studies wouldseem more suitable.

The book contains food for thought and the

commitment of the author attracts the reader.However, it is difficult to determine the targetgroup, and there is a lack of structure. The bookis well written and accessible for non-experts, butit is not complete and pedagogical enough toserve as a textbook. Conversely, much of thematerial is superfluous for advanced readers. Theuses of Indonesia purely as an example is exces-sive, whereas readers who concentrate on thecountry may well desire a more thoroughexposition.

Inge RøpkeDepartment of Technology and Social Sciences,

Technical Uni�ersity of Denmark,Matematiktor�et,

Building 303,DK-2800 Kgs. Lyngby,

DenmarkE-mail: [email protected]

PII: S0921 -8009 (01 )00156 -2

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