An Input-Output Table for Germany in 1936: A Documentation of Results, Sources and Research Strategy

In the following, we present the earliest input-output table for Germany: It covers 40 economic branches, five final demand categories and five primary inputs. The symmetric table for 1936 is completely based on original statistical data and does not rely on separate supply and use tables. The core of our endeavour is based on the German industrial census of 1936. Originally, this census and its forerunner of 1933 had especially been designed by the German Statistical Office (StRA) to compile an input-output-table for Germany as a basis for managing the business cycle. In connection with rearmament, however, this endeavour was given up and instead, these data were used for constructing detailed material balance sheets, which served as a statistical basis for preparing the war. Based on these hitherto secret records and additional statistical information, we fulfilled the original plan of the StRA of constructing the desired input-output table. Government is treated as an intermediate sector and placed into quadrant I of the table. In quadrant II it appears with only one figure (government gross production minus fees for specific government services). Government is delimitated into three sub-sectors: public administration and other government services, military spending and social security. In addition, public investment for civilian purposes is assigned to gross fixed capital formation in quadrant II. Military expenditure, however, is treated as government consumption and not as investment. The input-output table offers a new benchmark for gross domestic product (GDP) and thus production, income and expenditure of Germany in 1936. We found a comparably high level of GDP and a significantly higher mixed income/operating surplus which hints at exceptionally high incomes and hidden profits of the armament industry. Due to our unique production approach of calculating GDP these hidden profits were revealed.