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Theory and Methodologies: Input–Output, SCPM and CGE

In: Regional Economic Impacts of Terrorist Attacks, Natural Disasters and Metropolitan Policies

Author

Listed:
  • Qisheng Pan

    (Texas Southern University)

  • Harry W. Richardson

    (Universidad Autónoma del Estado de Mexico)

Abstract

Input–output modeling of inter-industry analysis was introduced in English in the original work of Leontief (1928); it was first developed by Bogdanov in Russian in 1921. Leontief illustrated the circular flow of goods in an economy by examining the production, distribution and consumption of two sectors of commodities, e.g., consumption goods and production goods in an input–output system. This two-sector system was extended to incorporate multiple sectors in a real-world economic system (Leontief 1936, 1941, 1951) when he released a series of input–output tables of the American economy based on national accounting data. These models were elaborated in the standard Leontief input-out model. An economic system consists of a number of industries that are classified as industrial sectors. Each sector uses inputs from itself and from other industrial sectors. Distinguished from other interindusty models, the Leontief input–output model assumes that a given product is only served by one sector, no joint products are allowed, and the quantity of each input served in production by any industrial sector depends on the level of output of that sector only (Clark 1959, Chap. 2 ).

Suggested Citation

  • Qisheng Pan & Harry W. Richardson, 2015. "Theory and Methodologies: Input–Output, SCPM and CGE," Advances in Spatial Science, in: Harry W. Richardson & Qisheng Pan & JiYoung Park & James E. Moore II (ed.), Regional Economic Impacts of Terrorist Attacks, Natural Disasters and Metropolitan Policies, edition 127, chapter 0, pages 21-45, Springer.
    • Handle: RePEc:spr:adspcp:978-3-319-14322-4_2
    DOI: 10.1007/978-3-319-14322-4_2
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