IDEAS home Printed from https://ideas.repec.org/p/vig/wpaper/1603.html
   My bibliography  Save this paper

An Input-Output methodological proposal to quantifying socio economic impacts linked to supply shocks

Author

Listed:
  • Juan C. Surís-Regueiro
  • José L. Santiago

Abstract

Input-output models are commonly used to assess socioeconomic impacts. These models typically evaluate exogenous variations in demand-related elements; however, they do not fully capture the associated effects of backward and forward sectoral linkages simultaneously. An analysis from the supply perspective is of greater interest to economic sectors that exploit natural resources because their activity is subject to natural variations or political factors beyond the producers’ direct control. This paper seeks to propose a methodology to improve the estimation of the impacts of these variations or supply shocks. Within the methodological context of input-output (IO) analysis, this paper introduces a practical procedure that includes price mechanisms that allow us to consider all sectoral linkages (backward and forward), thereby avoiding double counting. Therefore, the proposed method will improve impact assessments derived from supply shocks.

Suggested Citation

  • Juan C. Surís-Regueiro & José L. Santiago, 2016. "An Input-Output methodological proposal to quantifying socio economic impacts linked to supply shocks," Working Papers 1603, Universidade de Vigo, Departamento de Economía Aplicada.
    • Handle: RePEc:vig:wpaper:1603
    as

    Download full text from publisher

    File URL: https://webx06.webs8.uvigo.es/wp-content/uploads/2023/11/wp1603.pdf
    File Function: First version, 2016
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kinnaman, Thomas C., 2011. "The economic impact of shale gas extraction: A review of existing studies," Ecological Economics, Elsevier, vol. 70(7), pages 1243-1249, May.
    2. Yasuhide Okuyama & Joost R. Santos, 2014. "Disaster Impact And Input--Output Analysis," Economic Systems Research, Taylor & Francis Journals, vol. 26(1), pages 1-12, March.
    3. Christos T. Papadas & Dale C. Dahl, 1999. "Supply‐Driven Input‐Output Multipliers," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(2), pages 269-285, May.
    4. Ferng, Jiun-Jiun, 2003. "Allocating the responsibility of CO2 over-emissions from the perspectives of benefit principle and ecological deficit," Ecological Economics, Elsevier, vol. 46(1), pages 121-141, August.
    5. Ana-Isabel Guerra & Ferran Sancho, 2011. "Revisiting The Original Ghosh Model: Can It Be More Plausible?," Working Papers 11.02, Universidad Pablo de Olavide, Department of Economics.
    6. Ana-Isabel Guerra & Ferran Sancho, 2011. "Revisiting The Original Ghosh Model: Can It Be Made More Plausible?," Economic Systems Research, Taylor & Francis Journals, vol. 23(3), pages 319-328, February.
    7. Erik Dietzenbacher, 2002. "Interregional Multipliers: Looking Backward, Looking Forward," Regional Studies, Taylor & Francis Journals, vol. 36(2), pages 125-136.
    8. Adam Rose & Shu‐Yi Liao, 2005. "Modeling Regional Economic Resilience to Disasters: A Computable General Equilibrium Analysis of Water Service Disruptions," Journal of Regional Science, Wiley Blackwell, vol. 45(1), pages 75-112, February.
    9. Dietzenbacher, Erik, 2005. "Waste treatment in physical input-output analysis," Ecological Economics, Elsevier, vol. 55(1), pages 11-23, October.
    10. Paul De Boer, 1997. "On the Relationship between Input-Output Coefficients and Hanoch's Linear Homogeneous Constant Differences of Elasticities of Substitution Production Function," Economic Systems Research, Taylor & Francis Journals, vol. 9(3), pages 259-264.
    11. Stefan Giljum & Klaus Hubacek, 2004. "Alternative Approaches of Physical Input-Output Analysis to Estimate Primary Material Inputs of Production and Consumption Activities," Economic Systems Research, Taylor & Francis Journals, vol. 16(3), pages 301-310.
    12. Jan Oosterhaven & Gerrit Piek & Dirk Stelder, 1986. "Theory And Practice Of Updating Regional Versus Interregional Interindustry Tables," Papers in Regional Science, Wiley Blackwell, vol. 59(1), pages 57-72, January.
    13. Suh, Sangwon, 2004. "Functions, commodities and environmental impacts in an ecological-economic model," Ecological Economics, Elsevier, vol. 48(4), pages 451-467, April.
    14. Johnson, Thomas G. & Kulshreshtha, Surendra N., 1982. "Exogenizing Agriculture In An Input-Output Model To Estimate Relative Impacts Of Different Farm Types," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 7(2), pages 1-12, December.
    15. Sangwon Suh & Shigemi Kagawa, 2005. "Industrial ecology and input-output economics: an introduction," Economic Systems Research, Taylor & Francis Journals, vol. 17(4), pages 349-364.
    16. Manfred M. Fischer & Peter Nijkamp (ed.), 2014. "Handbook of Regional Science," Springer Books, Springer, edition 127, number 978-3-642-23430-9, September.
    17. Yasuhide Okuyama, 2007. "Economic Modeling for Disaster Impact Analysis: Past, Present, and Future," Economic Systems Research, Taylor & Francis Journals, vol. 19(2), pages 115-124.
    18. Erik Dietzenbacher & Manfred Lenzen & Bart Los & Dabo Guan & Michael L. Lahr & Ferran Sancho & Sangwon Suh & Cuihong Yang, 2013. "Input--Output Analysis: The Next 25 Years," Economic Systems Research, Taylor & Francis Journals, vol. 25(4), pages 369-389, December.
    19. Jan Oosterhaven, 2012. "Adding Supply-Driven Consumption Makes The Ghosh Model Even More Implausible," Economic Systems Research, Taylor & Francis Journals, vol. 24(1), pages 101-111, October.
    20. Malik, Arunima & Lenzen, Manfred & Ely, Rômulo Neves & Dietzenbacher, Erik, 2014. "Simulating the impact of new industries on the economy: The case of biorefining in Australia," Ecological Economics, Elsevier, vol. 107(C), pages 84-93.
    21. Adam Rose & Dan Wei, 2013. "Estimating The Economic Consequences Of A Port Shutdown: The Special Role Of Resilience," Economic Systems Research, Taylor & Francis Journals, vol. 25(2), pages 212-232, June.
    22. Edgar Hertwich, 2011. "The Life Cycle Environmental Impacts Of Consumption," Economic Systems Research, Taylor & Francis Journals, vol. 23(1), pages 27-47.
    23. Oosterhaven, Jan, 2015. "On the doubtful usability of the inoperability IO model," Research Report 15008-EEF, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Surís-Regueiro, Juan C. & Santiago, Jose L., 2018. "Assessment of Socioeconomic Impacts Through Physical Multipliers: The Case of Fishing Activity in Galicia (Spain)," Ecological Economics, Elsevier, vol. 147(C), pages 276-297.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Surís-Regueiro, Juan C. & Santiago, Jose L., 2018. "Assessment of Socioeconomic Impacts Through Physical Multipliers: The Case of Fishing Activity in Galicia (Spain)," Ecological Economics, Elsevier, vol. 147(C), pages 276-297.
    2. Linn Svegrup & Jonas Johansson & Henrik Hassel, 2019. "Integration of Critical Infrastructure and Societal Consequence Models: Impact on Swedish Power System Mitigation Decisions," Risk Analysis, John Wiley & Sons, vol. 39(9), pages 1970-1996, September.
    3. Rui Huang & Arunima Malik & Manfred Lenzen & Yutong Jin & Yafei Wang & Futu Faturay & Zhiyi Zhu, 2022. "Supply-chain impacts of Sichuan earthquake: a case study using disaster input–output analysis," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 110(3), pages 2227-2248, February.
    4. Selerio, Egberto & Maglasang, Renan, 2021. "Minimizing production loss consequent to disasters using a subsidy optimization model: a pandemic case," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 112-124.
    5. Oosterhaven, Jan, 2015. "On the doubtful usability of the inoperability IO model," Research Report 15008-EEF, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    6. Chopra, Shauhrat S. & Khanna, Vikas, 2015. "Interconnectedness and interdependencies of critical infrastructures in the US economy: Implications for resilience," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 436(C), pages 865-877.
    7. Matteo Coronese & Davide Luzzati, 2022. "Economic impacts of natural hazards and complexity science: a critical review," LEM Papers Series 2022/13, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    8. Chen, Quanrun & Chen, Xikang & Pei, Jiansuo & Yang, Cuihong & Zhu, Kunfu, 2020. "Estimating domestic content in China’s exports: Accounting for a dual-trade regime," Economic Modelling, Elsevier, vol. 89(C), pages 43-54.
    9. Carlos Adri?n Romero & Omar Osvaldo Chisari & Leonardo Javier Mastronardi & Arturo Leonardo V?squez Cordano, 2015. "The cost of failing to prevent gas supply interruption: A CGE assessment for Peru," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2015(2), pages 131-148.
    10. Li, Jia Shuo & Zhou, H.W. & Meng, Jing & Yang, Q. & Chen, B. & Zhang, Y.Y., 2018. "Carbon emissions and their drivers for a typical urban economy from multiple perspectives: A case analysis for Beijing city," Applied Energy, Elsevier, vol. 226(C), pages 1076-1086.
    11. Baghersad, Milad & Zobel, Christopher W., 2015. "Economic impact of production bottlenecks caused by disasters impacting interdependent industry sectors," International Journal of Production Economics, Elsevier, vol. 168(C), pages 71-80.
    12. Gunnar Lindberg, 2011. "On the appropriate use of (input-output) coefficients to generate non-survey regional input-output tables: Implications for the determination of output multipliers," ERSA conference papers ersa10p800, European Regional Science Association.
    13. Naqvi, Asjad, 2017. "Deep Impact: Geo-Simulations as a Policy Toolkit for Natural Disasters," World Development, Elsevier, vol. 99(C), pages 395-418.
    14. Fidel Aroche Reyes & Marco Antonio Marquez Mendoza, 2021. "Demand-Driven and Supply-Sided Input–Output Models," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 19(2), pages 251-267, June.
    15. Manresa, Antonio & Sancho, Ferran, 2013. "Supply and demand biases in linear interindustry models," Economic Modelling, Elsevier, vol. 33(C), pages 94-100.
    16. Maurizio Droli & Ting Fa Margherita Chang & Luca Iseppi & Livio Clemente Piccinini, 2014. "Managing Trade Contacts in HotRest Intermediate Markets: A Resource-Based View Analysis in EU Countries," Tourism Economics, , vol. 20(4), pages 757-778, August.
    17. Umberto Monarca & Ernesto Cassetta & Alessandro Sarra & Cesare Pozzi, 2015. "Integrating renewable energy sources into electricity markets: Power system operation, resource adequacy and market design," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2015(2), pages 149-166.
    18. Giovanni Marin & Marco Modica, 2016. "Mapping the exposure to natural disaster losses for Italian municipalities," SEEDS Working Papers 0916, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Oct 2016.
    19. Dan Wei & Zhenhua Chen & Adam Rose, 2020. "Evaluating the role of resilience in reducing economic losses from disasters: A multi‐regional analysis of a seaport disruption," Papers in Regional Science, Wiley Blackwell, vol. 99(6), pages 1691-1722, December.
    20. Marquez, Marco, 2022. "Supply, demand and economic growth in Mexico in the period 1980–2016," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vig:wpaper:1603. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Departamento de Economía Aplicada (email available below). General contact details of provider: https://edirc.repec.org/data/deviges.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.