STATISTICAL ECONOMIC AGGREGATES FOR PETROCHEMICALS INDUSTRIES REPLICATED WITH LINEAR-PROGRAMMING MODEL

Abstract

When applied for 1977 conditions, the optimal solution of a large linear programming model for the petrochemicals industries (including petroleum refining) replicated well 1977 aggregate economic statistics for nine 4-digit SIC industries in the United States and the Beaumont SMSA. This accomplishment is significant for several reasons 1. (1) The built-up aggregate estimates from the modeling solution are based on massive detail in the industry model, which may be readily extended to encompass all standard industrial classifications (SIC) for heavy industry and electric/gas utilities 2. (2) the industries modeled are not necessarily perfectly competitive, yet the results suggest that they ar..