Rethinking Input-Output Analysis (eBook)

Preface: History and Acknowledgements 6
Contents 7
Variables and Coefficients 10
1 Introduction: Importance Interindustry Relations and Overview 11
References 12
2 Basic, Demand-Driven IO Quantity Models 14
2.1 Single-region IO Tables and Their Descriptive Power 14
2.2 Mathematics Versus Economics of the Closed Economy IO Model 16
2.3 Open Economy Interregional and Multi-regional IO Models 20
2.3.1 Distinguishing Technical and Trade Origin Coefficients 20
2.3.2 Underestimation of Interregional Spillovers and Feedbacks 25
References 27
3 Data Construction: From IO Tables to Supply-Use Models 28
3.1 Construction of Regional IO Tables: Towards Cost-Effective Methods 28
3.1.1 Most Non-Survey Methods Overestimate Intra-Regional Multipliers 28
3.1.2 Non-Survey CC-RAS Method: Advantage of Using Multiple Comparable IOTs 32
3.1.3 Semi-Survey DE-BRIOT Method: Advantage of Constructing Bi-Regional IO Tables 34
3.2 Construction of Interregional Supply-Use Tables and Models 37
3.2.1 Difficulty of Deriving an IO Model from a Supply-Use Table 38
3.2.2 Family of Interregional Supply-Use Tables and Models 41
3.3 Difference Between Constructing Interregional and International SUTs 44
References 46
4 From Basic IO and SU Models to Demo-Economic Models 49
4.1 Interregional Models with Endogenous Household Consumption 49
4.2 Further Demo-Economic Model Extensions 55
4.3 Where to End with Endogenizing Final Demand? 60
References 62
5 Cost-Push IO Price Models and Their Relation with Quantities 64
5.1 Forward Causality of the Single-Region IO Price Model 64
5.2 Type II Interregional Price and Quantity Models Combined: Lower Multipliers 67
References 72
6 Supply-Driven IO Quantity Model and Its Dual, Price Model 74
6.1 Plausibility of the Supply-Driven Input-Output Model 74
6.1.1 Basic Supply-Driven IO Model: How Factories May Work Without Labour 74
6.1.2 Type II Supply-Driven IO Model: How More Private Cars May Run with Less Gasoline 79
6.2 Revenue-Pull IO Price Model = Plausible Dual of the Ghosh Quantity Model 81
6.3 Markets: Why All Four IO Models Overestimate Their Typical Impacts 84
References 87
7 Negative IO Supply Shock Analyses: A Disaster and a Solution 90
7.1 Limited Usability of the IO Model in Case of Supply Shocks 90
7.2 Nonlinear SU Programming Alternative: Much Smaller Disaster Multipliers 94
References 98
8 Other IO Applications with Complications 100
8.1 Key Sector and Linkage Analyses: A Half-Truth 100
8.1.1 Analytical and Empirical Comparison of Key Sector Measures 101
8.1.2 Cluster and Linkage Analysis for Three Dutch Spatial Policy Regions 103
8.1.3 The Other, Cost Side of the Coin 106
8.2 Structural Decomposition Analyses: Another Half-Truth 108
8.2.1 Shift and Share Analysis of Regional Growth 109
8.2.2 Structural Decomposition Analyses of National and Interregional Growth 111
8.2.3 The Other, Supply Side of the Coin: Growth Accounting 115
References 116
9 Future: What to Forget, to Maintain and to Extend 120
References 122