Input-Output Economics and Material Flows
This paper argues that resources constitute the fundamental area of overlap between the interests of input-output economists and industrial ecologists. Three misconceptions about input-output economics obscure this fact: the frequent failure to utilize combined quantity and price input-output models, treatment of value-added as a monetary concept only, and the belief that all input-output models assume a linear relationship between output and final deliveries. The paper dispels these misconceptions by describing a quantity input-output model with resources measured in physical units and the corresponding price model with both resource prices and product prices. The model is illustrated with a numerical example of a hypothetical economy and analysis of a scenario where that economy is subsequently obliged to extract a lower grade of ore. Then three other input-output models are presented: a model closed for household consumption, a dynamic model, and a model of the world economy. Unlike the basic model, the last two are non-linear in final deliveries and in factor prices while also retaining the desirable features of the basic model.
|Date of creation:||Dec 2004|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.economics.rpi.edu/|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Leontief, Wassily & Duchin, Faye, 1986. "The Future Impact of Automation on Workers," OUP Catalogue, Oxford University Press, number 9780195036237, December.
- Duchin, Faye & Lange, Glenn-Marie, 1995. "The Future of the Environment: Ecological Economics and Technological Change," OUP Catalogue, Oxford University Press, number 9780195085747, December.
- Duchin, Faye, 1990. "The conversion of biological materials and wastes to useful products," Structural Change and Economic Dynamics, Elsevier, vol. 1(2), pages 243-261, December.
- Duchin, Faye & Lange, Glenn-Marie, 1998. "Prospects for the recycling of plastics in the United States," Structural Change and Economic Dynamics, Elsevier, vol. 9(3), pages 307-331, September.
- Edler, Dietmar & Ribakova, Tatjana, 1993. "The Leontief-Duchin-Szyld dynamic input-output model with reduction of idle capacity and modified decision function," Structural Change and Economic Dynamics, Elsevier, vol. 4(2), pages 279-297, December.
- Pyatt, Graham, 1988. "A SAM approach to modeling," Journal of Policy Modeling, Elsevier, vol. 10(3), pages 327-352.
When requesting a correction, please mention this item's handle: RePEc:rpi:rpiwpe:0424. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shawn Kantor)
If references are entirely missing, you can add them using this form.