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Revisiting the Temporal Leontief Inverse: New Insights on the Analysis of Regional Technological Economic Change

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  • Avelino, André F.T.
  • Franco-Solís, Alberto
  • Carrascal-Incera, André

Abstract

The current availability of longer series of input-output tables, as well as the release of global input-output databases, has fostered a growing literature analyzing changes in the economic structure and their drivers. In this paper, we take advantage of these time-series by proposing a methodology designed to trace the contribution of different drivers of the change in interindustrial relationships over time. Based on the Temporal Leontief Inverse (TLI), the Extended TLI (ETLI) decomposes the economy-wide effects of changes in direct interindustrial links between years, isolating the impact of different determinants of economic (environmental, energy, etc.) spillovers according to the interests of the researcher. For example, one can explore how the multipliers of a particular industry were affected by changes in technology of other sectors and in the own sector; by changes in trade patterns in specific countries; by indirect changes in intraregional production chains in foreign nations; etc. The ETLI is illustrated by uncovering certain hidden effects not captured in a previous application of the original TLI to the Chicago region between 1980-1997.

Suggested Citation

  • Avelino, André F.T. & Franco-Solís, Alberto & Carrascal-Incera, André, 2021. "Revisiting the Temporal Leontief Inverse: New Insights on the Analysis of Regional Technological Economic Change," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 79-89.
    • Handle: RePEc:eee:streco:v:59:y:2021:i:c:p:79-89
    DOI: 10.1016/j.strueco.2021.07.005
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    More about this item

    Keywords

    Temporal Inverse; Input-Output; Time Series; Technological Change; Structural Change;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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