input-output analysis


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input-output analysis

or

interindustry analysis

the study and empirical measurement of the structural interrelationships between PRODUCTION sectors within an economy. The technique was devised by Wassily Leontief (1906-) to measure the factor input required by different industries to achieve a given OUTPUT. A particular sector of the economy requires inputs from other sectors, be it raw materials, intermediate goods and services, or labour, in order to produce output. The interdependence between industries, or sectors, is not linear but complex. That is, one sector does not produce, say, coal for other sectors independent of the requirements of the coal industry for inputs from other sectors. For the mining sector, coal is an output. But coal is an input for the electricity industry. By the same token, the coal industry requires inputs (including electricity) in order to produce the coal. The complexity of an economy can be gauged from this simple example. See VERTICAL INTEGRATION, INDICATIVE PLANNING, GENERAL EQUILIBRIUM ANALYSIS.
References in periodicals archive ?
From the information provided by the matrix of intermediate inputs, the technical coefficients can be obtained; they will be used to calculate the Leontief inverse, the fundamental axis of the input-output analysis.
According to Bednarikova (2012), the input-output analysis is actually an effective application of the Walrasian general equilibrium analysis, namely due to the fact that it is composed of "a system of simultaneous equations describing the demand for the supply of sectorial outputs" (Bednarikova, 2012, p.
Although some aspects of inter--sectoral relationship between economic units can be found in very old economic literature, Wassily Leontief is considered as the main developer of the input-output analysis (Ten Raa 2005).
Primary energy and greenhouse gases embodied in Australian final consumption: an input-output analysis.
b) input-output analysis (various well known approaches; Clemson University and Wiskonsin approach; for recent development see e.
Fert CEnergy input-output analysis in Turkish agriculture.
This is similar to analysis carried out by Labandeira and Labega (1999) in which they combined input-output analysis with micro-simulation to model the impacts of a carbon tax in Spain.
The project economists from the Georgia Institute of Technology customized input-output analysis models for each study region to provide specific and reliable economic impact data.
Input-output analysis was developed by Wassily Leontief in the 1930s to study the inter-relationships between different sectors of an economy.
Input-output analysis investigates inter- or cross-industry relations in an economy by studying how the output of one industry is used by another industry where it serves as an input.
Then we set up a mathematical model generalising the input-output analysis to take account of the situation, and examine how this model with the layers of techniques can be constructed.
Input-output analysis, as a theoretical framework and an applied economic tool, was developed by Wassily Leontief in his 1936 publication of the first input-output tables for the United States for the years 1919 and 1929.