Questions tagged [input-output]
Input-output models as used by Wassily Leontief.
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What cause the capital-output ratio to be low in developing countries?
I'm now studying economic development and I wonder what is the causes of low ICOR in developing countries and high ICOR in advanced countries.
Because it's about economic development so I need some ...
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Interpretation of the Elements of the Leontief Inverse (Total Requirements Matrix)
I found what I believe to be slightly different interetations of the individual elements of the Leontief Inverse (total requirements matrix):
Miller and Blair (2009) just after Equation (2.12) mention ...
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Latent community detection from input-output linkages
I am looking for a method or algorithm to compute the similarity between two companies based on input-output linkages. That is, from a graph where companies are nodes and sales are directed edges, can ...
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Question regarding input output modeling for economic impacts / disasters
I am quite new to I/O modeling but trying to apply it to study the impact of cyber-attacks. At this point, I am well aware of the existing literature on the Leontief model (demand side) and the Ghosh ...
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How to calculate induced effect using input-output tables IOTS 2021
I need to calculate induced effects of employment using OECD input-output (2021). After some readings I knew that I shall charge the matrix with households final consumption (in columns) and some ...
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No profits if labour is the only input into production?
I'm studying the Richardian model now - it says that, if labour is the only input into production, there are no profits, so workers receive the full value of their output - i can't wrap my head around ...
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Why do the BEA's Use and Supply Tables have Industries (and not products) on the Rows?
I'm learning about Use and Supply tables, and all the tutorials (including this very nice video from the Singapore Department of Statistics) show that products are on the rows and industries are on ...
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How could you partition Household Food Expenditures into Producing Industries?
From the 2019 Consumer Expenditure Survey, the average household annual food expenditure was $8,169 for that year. There are subcategories such as "Food at Home" and "Food away from ...
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Why the definition of productive economy in Leontief Open Model is such?
Note: as an inter-disciplinary question, it has its twin on Mathematics Exchange: https://math.stackexchange.com/questions/4193896/why-the-definition-of-productive-economy-in-leontief-open-model-is-...
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Does aggregate CRS imply firm-level CRS?
Suppose that a production set $Y \subset \mathbb R^I$ has the following two properties:
Constant returns to scale: $\forall y \in Y, \alpha \geq 0$, we have $\alpha y \in Y$.
Separability: For some $\...
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Aggregation of the closure property of a production set
Consider an economy with finitely many goods $I$ and factors $F$. For each good $i$, let $Y_i \subset \mathbb R^I \times \mathbb R^F_{\geq 0}$ denote a production set for $i$. Assume each $Y_i$ has ...
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Share of domestic and foreign monetary flows between sectors of a country
In multiregional input-output analysis, monetary flows between or within economic sectors are given in a transaction matrix T. Both, the rows and the columns, have the same index (Region 1 Sector 1, ...
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How to estimate the labor time required to produce all necessities in a given economy (assuming all goods/services are produced domestically)?
I want to estimate how much labor time would have to be spent on producing/providing necessities in an economy if all necessities were produced/provided domestically (without imports). Assuming that ...
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Is an input-output model an equilibrium model?
I know the difference between CGE and input-output models.
But can an input-output model be called a equilibrium model?
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Returns to Scale off a figure
This is the table given for levels of output for different levels of inputs.
\begin{pmatrix}
Q & K & L\\
100 & 3 & 6\\
200 & 5 & 10\\
300 & 7.5 & 15 \\
400 & 10 &...
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Optimal Production Input in Relation to Cost Minimization Problem
I was doing my homework and got really confused about how to approach the optimal levels of inputs when there are three variables. My current understanding is that the problem is to solve the ...
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How to prove that a concave production imply that the input requirement sets are convex?
According to page 7 of this slide, "A convex production set Y implies that the associated input requirement set V(y) is convex".
How can one go about proving it?
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Data for CGE experiments?
Does anyone know of any open-source U.S. data sets in a format appropriate to whole-economy CGE econometric modeling, i.e. data sets covering the entire economy, divided into at least 20 sectors, with ...
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In a social accounting matrix, what does Capital refer to?
In the process of building a social accounting matrix for Panama, I am trying to understand what capital refers to. The Panamanian National Accounts have tables on capital, but they describe gross ...
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When building a social accounting matrix, do you input domestic intermediate demand or total intermediate demand?
I have been trying to build a social accounting matrix (SAM) after building an input-output table (IOT). In the IOT, I had to distinguish between total intermediate demand (which includes import of ...
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How to build a Social Accounting Matrix from an Input-Output Table?
I built an Input-Output table (IOT) with the industryXindustry format because I thought it was a building block to build a social accounting matrix (SAM). But now I realize that I can't transpose the ...
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What is the difference between personal consumption expenditure price and PCE quantity?
What is the difference between these two things? How is PCE price different from PCE quantity? Also, I am confused about the difference between PCE quantity and measure of real output. For example, ...
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How is Aggregate Supply(Willing) equal to National Income(Actual)?
Acc. to definition of Aggregate Supply
It is the total value of final goods and services that the producers are willing to supply in country .
Definition of National Income
It is the value of ...
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What does the Leontief Inverse represent? (Intuitive Meaning or Real World Concept)
I encountered that nobody, even my profs and lecturers so far, has an intuitive way to explain what the Leontief inverse represents. Does somebody here?
As most people here would know, it goes:
$\ ...
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Quasi Fixed Input
What is quasi fixed cost? What is the difference between fixed and quasi-fixed cost? Is capital, land and labour considered a quasi fixed cost for a firm? I have read that when the firm wants to take ...
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Is the capital-output ratio in developing countries low or high?
For a developing economy, I've seen sources claiming that the capital-output ratio (more commonly known as ICOR) is high (e.g. here and here), while other sources claiming that it's low, like below (...
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Relationship Input Distance Function and Output Distance Function
I was wondering if anybody knows how input distance functions (IDF) and output distance functions (ODF) relate to each other. One of the advantages of distance functions over cost and revenue ...
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Regional disaggregation of a national input-output table
I am trying to disaggregate a "national" input-output table into three regions using Simple Location Quotients (SLQs) and RAS balancing. In particular, I'm trying to use the "Two region logic with ...
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What would the determinant of the input-output matrix represent? What is the intuition?
I know that the determinant of a 2x2 matrix represents the oriented area of the parallelogram represented by the vectors in the matrix. For 3x3 or higher order matrix it represents the oriented volume....
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Have social accounting matrices and input output models fallen out of fashion? if so, why?
My perception may be uninformed but 'worldwide' I believe collection of official data on input output tables of economies dont seem to be keeping up with the times. Im aware that compilation of such ...
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Where can I find information on relationships between different commodities?
I'm looking for information about relationships between commodities. Essentially, what things do you need to use to produce other things. The info doesn't need to reflect the current state of ...
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Evaluate projects'/investments' impact on whole economy
I have 200 ROI investment examples (projects) in a specific industry, say manufacturing of microprocessors. How and what methods can I use to evaluate the impact (GDP, added value, job growth, etc.) ...
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How to deal with a singular Leontiev inverted matrix?
I am currently studying and experimenting the input-output methodology. It is a 1930's method based on national accountings that allows to measure the interindustry flow of good and services.
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