Kubo, Robinson, and Syrquin use this approach in developing a generic "Static Input-Output Model," which decomposes and relates national output and economic structure. They recognize the limitations of the model, specifically for dealing with investment and changes in productivity, and note that the effect of technological change on productivity is "quite different from that captured by changes in input-output coefficients, although the effects may be related. . . . No explanation of the source of such changes in labor productivity is offered [by the static model]."1
Comparative static analysis does not account for forces that may be not only shifting the economic structure of a nation, but altering the growth processes operating within that structure. Analysis of this sort of growth requires a dynamic analytical model that considers both quantitative input- output relationships and qualitative aspects of economic growth.
The computable general equilibrium (CGE) model developed by Kubo, Robinson, and Syrquin expands the static model to nonlinear functions; simulates operations of markets for labor, goods, and foreign exchange; introduces behavioral and technological assumptions; and incorporates a recursive mechanism for dealing with intertemporality. This basic CGE model eventually converges to a "growth path with equilibrium characteristics."2
An alternative extension of the static input-output model incorporates capital accumulation, but omits incentives and market dynamics. 3 While static models can be both arcane and sophisticated, they seem inherently unable to deal well with qualitative or subjective variables, such as technology, knowledge, innovation, or productivity. 4