A New Image of Classical Key Sector Analysis: Minimum Information Decomposition of the Leontief Inverse
This paper provides a theoretical framework for the Rasmussen-Hirschman key sector analysis based on a minimum information approach. This approach introduces a separation of information about regional economic structure into two parts. In the first part, knowledge about economic structure, extracted on the basis of minimum information included in the row and column multipliers, is extracted from the Leontief inverse matrix. The second part presents the specifics of synergetic interactions between different sectors of the economy. A corresponding intensity matrix represents the strength of the fields of influence of simultaneous multiple changes. From this formulation, a minimum information decomposition of the Leontief inverse is shown to exist and applied to Chinese input-output tables for 1987 and 1990.
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Volume (Year): 12 (2000)
Issue (Month): 3 ()
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- Round, Jeffrey I, 1985. "Decomposing Multipliers for Economic Systems Involving Regional and World Trade," Economic Journal, Royal Economic Society, vol. 95(378), pages 383-99, June.
- Pyatt, F Graham & Round, Jeffery I, 1979. "Accounting and Fixed Price Multipliers in a Social Accounting Matrix Framework," Economic Journal, Royal Economic Society, vol. 89(356), pages 850-73, December.
- Sonis, Michael & Hewings, Geoffrey J.D., 1993. "Hierarchies of Regional Sub-Structures and Their Multipliers within Input-output Systems Miyazawa Revisited," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 34(1), pages 33-44, June.
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