A Theoretical Model of the Relationship between Value Added Elements and Final Product
This paper focuses on the development of a theoretical scheme describing the transformation of primaryincomes into end consumption and savings in the Russian economy. This scheme is basically a system ofinterrelated tables reflecting the distribution of primary incomes across the institutional sectors and their furtherreallocation and use. The scheme makes allowances for the specific features of the Russian economy and existingstatistics. In terms of methodology, it is coordinated with the interindustry balance in current buyer pricesand, from the theoretical standpoint, describes the connection between Quadrant II and Quadrant III of the balance.Therefore, the proposed system of tables is treated in the paper as Quadrant IV of the interindustry balance.The theoretical scheme is used by the authors as a necessary basis for constructing an empirical model ofthe relationship between value added and end product, which will be published in the next issue of this journal.