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Basic, Demand-Driven IO Quantity Models

In: Rethinking Input-Output Analysis

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  • Jan Oosterhaven

    (University of Groningen)

Abstract

This chapter introduces the single-region, the interregional and the multi-regional input–output (IO) table and the differences between the IO models based on these three sets of data. The crucial intermediate input coefficients are shown to represent the product of a technical coefficient and an intra-regional self-sufficiency ratio in case of the single-region IO model, plus interregional import coefficients in case of both types of multi-region models. Besides, it is shown that it is better to work with the dimensionless normalized income, employment, emissions and other impact multipliers than with the ordinary multipliers of exogenous final demand. Finally, the nature of interregional spillover and feedback effects is explained, and why both are underestimated by the single-region model.

Suggested Citation

  • Jan Oosterhaven, 2022. "Basic, Demand-Driven IO Quantity Models," Advances in Spatial Science, in: Rethinking Input-Output Analysis, edition 2, chapter 0, pages 5-19, Springer.
    • Handle: RePEc:spr:adspcp:978-3-031-05087-9_2
    DOI: 10.1007/978-3-031-05087-9_2
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