Inner, final, and feedback structures in an extended input - output system
In this paper, the input - output model is treated as a complete matrix system of interindustry transactions related to primary inputs and final demand. Such an integration permits the total coefficient matrices to be related to the starting and ending points of the input - output system. It is shown how this formulation may be used for policy analysis by isolating the effects of changes in any one of the areas on any other area, including the feedback effects on the starting point of the initial change. Inner structures show the (weighted) forward and backward linkages between the Leontief and Ghoshian inverses and distribution or share coefficients of the final demand or primary input matrices. Final structures describe how the production and allocation matrices are related simultaneously to both final demand and primary input. Feedback structures show how changes in the distribution or level of final demand or primary inputs work their way through the system and change the original final demand and primary inputs according to how they are related to produced output.
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