This paper concerns the following problem: in the usual interregional input-output analysis, the inverse matrix only shows the ultimate total effects of interregional propagation, but we cannot draw any information on the partial interactions between two or three regions which night be thought to have structurally different characters. How, then, is it best taken into account?
This paper can be divided into two parts. In the first part, we consider the theoretical framework to clarify the problem of this type. There, we formulate the “general model partitioned into three regions”, with meaningful notions.
In the second part, we apply our formula to the Interregional Input-Output Model of the Japanese Economy. Some empirical findings of this study are summarised there.

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There has been a rapid expansion in the realm of public activities aimed at regulating external effects beyond the reach of market mechanisms so as to protect citizens' livelihoods and social systems. The rising social costs in various fields are not fully reflected in the supply and demand facet of market transactions, thus delaying required institutional responses including legal ones.
What is now required is a new interpretation of the interrelation between economic mechanisms and institutional settings, including a fundamental revision of the principles of market economy autonomy and of classic civil law, together with a redesigning of market economy rules to also incorporate the working of so-called“quasi-markets”.
Supposing a market system circumscribed by institutions is an arena in which economic problems are solved through choices by individual members of society based on their own initiative, then a nonmarket system or legal system similarly circumscribed by institutions must be an arena in which individual actions are regulated based on social rules and in which social rules themselves are formed.
The basic purpose of established linkages among individuals in a society is the generation of institutions and systems that (1) appropriately contain and properly restrict the area of influence of market mechanisms, while (2) reinforcing the power of decentralized market mechanisms and enlarging their area of effectiveness. It would seem that institutions must possess these two characteristics, though they appear regressive at first sight.
Therefore, what is needed are two functional factors; effective regulation through institutional settings and efficient competition through market mechanisms. It may be necessary to redesign systems based on solutions for eliminating“institutional failure”and to internalize various social costs so as to provide economic incentives for engaging in equitable and efficient behavior.
The central point of this postulation is that the settlement of rights, or the “distribution of rights, ”is based on sanctioned behavioral relations among persons that derive from the existence and use of goods and services. Visible costs and benefits are not the only determinants of behavior, but the right to benefits is also an important determinant. The assignment of different rights, or the redistribution of private rights, leads to various incentive systems and benefit/loss structures.
Some economic analytical concepts, such as externalities, uncertainty, transaction cost, market failure, government failure, can be clearly understood in light of a concept of interconnectedness among property rights, incentives, institutional arrangements, and economic behavior in relation to the marketplace and various social settings.
Recent issues regarding information, internal organization, networking, and new concepts, such as“economies of network”(introduced in this paper) can also be more clearly elucidated if viewd from the perspective of the interrelation between decision-making incentive systems and economic behavior in the contemporary market society, which has now become a technique in various fields.

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Recent sophistication of industrial structure has often been characterized by the "service industry" gaining more importance; however, this is not an adequate term, because it means nothing but an industry that does not produce goods. It should rather be subdivided in terms of processes and products to provide and acceptable concept for description of the modern innovation. Transportation that simply moves goods and people, and wholesale, retail and real estate businesses that combine products with consumers, form an auxiliary sector for productions, and are not characteristic of the service-oriented society. The service industry in a narrower sense excluding them are further divided into the service industry which directly affects people as service consumers and the knowledge industry which produces knowledge from knowledge. The growth of the former is led by demand increased by higher income and lower labor productivity rather than by innovative technologies. It is the latter, including R&D and software industry, which promotes modern development of industrial structure, based on microelectronics and other innovations. It will be useful to conceive a knowledge industry in a wider sense that include communication that transports knowledge and publishing which produces knowledge-based products.

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芸術的ガラスの販売と歴史的建造物保存を目的に1988年に設立された第3セクター（株）黒壁は、1995暦年産業連関表による経済波及効果推計により、黒壁目的の観光客によるガラス購入、近隣商店での消費、駐車場利用や宿泊で直接消費額約15億円、2次効果まで含めると約23億円を滋賀県全体にもたらしたと考えられる。一方、黒壁の財務分析の結果を見れば、利益率を向上させ、競争力を維持するためには、ガラスの芸術性を高めるためにより大きな投資が必要である。したがって、従来黒壁が行ってきたまちなみ建造物保存は、黒壁の活動で裨益する近隣商店街、地域コミュニティや、長浜市との連携、共同負担によって行われる必要がある。

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わが国の廃棄物処理を取り巻く状況は量的, 質的に危機的状況にある。その原因は廃棄物処理のための経済的システムが十分に機能していないところにある。その矛盾を補うために廃棄物処理法の改正, リサイクル法の施行など国などによる規制の強化によって廃棄物の減量化に積極的な公共的な取り組みが期待されているが, 基本的にこのような処理の限界の背景には, 市場の失敗があることはいうまでもない。そこで本稿では課徴金や税制などの導入による影響を踏まえ, 公共経済的手法と市場経済的手法の複合的な方法の導入によって廃棄物処理の現状の矛盾を克服し, そのことによって新たな経済システムの形成と社会的厚生の拡大を検討するものである。

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昭和40, 45, 50年接続産業連関表をもとに,広義の13部門の食品工業に対する石油,電力等5部門のエネルギー源の直接投入金額,国内生産額に対する直接投入率,間接投入も含むエネルギー依存率,などを算出し,食品工業の内部同志を相互に比較,また,色々な観点から比べられる食品工業以外の8種の代表的な産業部門と比較した結果,食品工業各部門の特性とエネルギーへの依存構造を明らかにした。
(1) '65～'75年の10ケ年間の実質金額によるエネルギー投入額の推移を13種の食品工業各部門毎に明示した。
(2) 国内生産額基準,および,原材料の投入金額の総計である内生部門計基準のエネルギーの直接投入率を求め,前者は高々3%(食品工業の平均値が約1.3%)であることを認めた。
(3) 食品工業に投入される原材料やサービスに対するエネルギーの投入(間接投入)も含めたエネルギー依存率を算出し,夫々の部門の特性が良く現れているが,標準的には,1.0の生産額をもたらすために(4～6)×10^-2程度がエネルギーに投入されていることが判った。
(4) 一部の部門を除けば,'70, '75年の間の第1次エネルギー・ショックの影響を受けて省エネルギー化の努力が為され,特に石油消費の節減が功を奏していた。
(5) 食品以外の代表的な産業部門と比較し,食品工業は特にエネルギー多消費型ではないことが判ったが,水産物関係には,石油の投入で問題があることを認めた。
(6) 各部門の電力と石油に対する依存構造から,食品工業をエネルギー投入面から,熱処理型と機械処理型および人力処理型に大別することができた。

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Interregional payment balances is considered indicator of development and also that of inland trade balances among regional ecomomies, applying the concept of International payment balances.
Dividing Japanese regions into four groups-(1) the three megalopolices (Tokyo, Osaka, and Nagoya), (2) their surrounding areas, (3) the borderlands (Hokkaido, Kyushu, etc.), (4) and the other areas-the defferences in interregional payment balances among the group, which are placed in the order of 1>2>4>3, have been found to have recently expanded, although the excessive surplus of the three megalopolices has slightly declined.
Interregional payment balances have positive correlations with the averages of income and the industrialization, and negative correlations with the expenditures of the national finance: on the other hand, the averages of income have positive correlations with Interregional payment balances and the industrialization, and negative correlations with the expenditures of the national finance. Therefore, deficit areas by the indicator can be said to have low standards of income and industry, and be dependent on the national finance. The differences among Interregional payment balances show the “inbalanced” levels of the regional economics.
We suggest a way for solving the problem of inbalances, pointing out the great need to reduce the multiplier factors with the following measures:
1. lowering “spill-over effect” by reconstructing the economic structures emphasing industries
2. reducing “investment leakage” by improving the policies for hightening economic effects of public investments provided by the national finance
There might be specific policies of the government to emphasize on investing in certain areas by casting divided roles to regions, however, the indicator of Interrogional payment balances gives us a criterion on basic judgement for the regional policies.

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