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Using network science to quantify economic disruptions in regional input-output networks

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  • Emily P. Harvey
  • Dion R. J. O'Neale

Abstract

Input Output (IO) tables provide a standardised way of looking at monetary flows between all industries in an economy. IO tables can be thought of as networks - with the nodes being different industries and the edges being the flows between them. We develop a network-based analysis to consider a multi-regional IO network at regional and subregional level within a country. We calculate both traditional matrix-based IO measures (e.g. 'multipliers') and new network theory-based measures at this higher spatial resolution. We contrast these methods with the results of a disruption model applied to the same IO data in order to demonstrate that betweenness centrality gives a good indication of flow on economic disruption, while eigenvector-type centrality measures give results comparable to traditional IO multipliers.We also show the effects of treating IO networks at different levels of spatial aggregation.

Suggested Citation

  • Emily P. Harvey & Dion R. J. O'Neale, 2019. "Using network science to quantify economic disruptions in regional input-output networks," Papers 1910.12498, arXiv.org.
    • Handle: RePEc:arx:papers:1910.12498
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    References listed on IDEAS

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    1. Jan Oosterhaven, 2017. "On the limited usability of the inoperability IO model," Economic Systems Research, Taylor & Francis Journals, vol. 29(3), pages 452-461, July.
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    3. Martha G. Alatriste Contreras & Giorgio Fagiolo, 2014. "Propagation of economic shocks in input-output networks: A cross-country analysis," Post-Print hal-01474258, HAL.
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    5. Mahdi Jalili & Ali Salehzadeh-Yazdi & Yazdan Asgari & Seyed Shahriar Arab & Marjan Yaghmaie & Ardeshir Ghavamzadeh & Kamran Alimoghaddam, 2015. "CentiServer: A Comprehensive Resource, Web-Based Application and R Package for Centrality Analysis," PLOS ONE, Public Library of Science, vol. 10(11), pages 1-8, November.
    6. McNerney, James & Fath, Brian D. & Silverberg, Gerald, 2013. "Network structure of inter-industry flows," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 392(24), pages 6427-6441.
    7. Federica Cerina & Zhen Zhu & Alessandro Chessa & Massimo Riccaboni, 2015. "World Input-Output Network," PLOS ONE, Public Library of Science, vol. 10(7), pages 1-21, July.
    8. Erik Dietzenbacher & Ronald E. Miller, 2015. "Reflections On The Inoperability Input--Output Model," Economic Systems Research, Taylor & Francis Journals, vol. 27(4), pages 478-486, December.
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