Input-output economics was developed by Wassily Leontief. It uses a Matrix (mathematics) representation of a nation's economy to predict the effect of changes in one industry on others and by consumers, government, and foreign suppliers and consumers on the economy. Each row of the input-output matrix reports the monetary value of an industry's inputs and each column represents the value of an industry's outputs. Suppose there are three industries. Row 1 reports the value of inputs to Industry 1 from Industries 1, 2, and 3. Rows 2 and 3 do the same for those industries. Column 1 reports the value of outputs from Industry 1 to Industries 1, 2, and 3. Columns 2 and 3 do the same for the other industries. While the input-output matrix reports only the intermediate goods and services that are exchanged among industries, row vectors on the bottom record the disposition of finished goods and services to consumers, government, and foreign buyers. Similarly, column vectors on the right record non-industrial inputs like labor and purchases from foreign suppliers. In addition to studying national economies, input-output economics has been used to study regional economies within a nation. The mathematics of input-output economics is straight forward but the data requirements are enormous. The tool has languished because not all countries collect the required data, data quality varies, and the data collection and preparation process has lags that make timely analysis difficult. Types of economics
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Input-output economics
Input-output economics was developed by Wassily Leontief. It uses a Matrix (mathematics) representation of a nation's economy to predict the effect of changes in one industry on others and by consumers, government, and foreign suppliers and consumers on the economy. Each row of the input-output matrix reports the monetary value of an industry's inputs and each column represents the value of an industry's outputs. Suppose there are three industries. Row 1 reports the value of inputs to Industry 1 from Industries 1, 2, and 3. Rows 2 and 3 do the same for those industries. Column 1 reports the value of outputs from Industry 1 to Industries 1, 2, and 3. Columns 2 and 3 do the same for the other industries. While the input-output matrix reports only the intermediate goods and services that are exchanged among industries, row vectors on the bottom record the disposition of finished goods and services to consumers, government, and foreign buyers. Similarly, column vectors on the right record non-industrial inputs like labor and purchases from foreign suppliers. In addition to studying national economies, input-output economics has been used to study regional economies within a nation. The mathematics of input-output economics is straight forward but the data requirements are enormous. The tool has languished because not all countries collect the required data, data quality varies, and the data collection and preparation process has lags that make timely analysis difficult. Types of economics
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IA | IB | IC | ID | IE | IF | IG | IH | IJ | IK | IL | IM | IN | IO | IP | IR | IS | IT | IU | IW | IX | IY | IZ |Words begining with Input-output_economics:
Input-output_economics
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