Entropy maximization and input–output analysis

Wilson’s original introduction of the concept of entropy to the modelling of input–output and commodity flow systems provided a more flexible alternative to the prevailing state of the art. Following a brief review of prior approaches, the modified Wilson approach is presented and illustrated with an application to Korea. Thereafter, recent developments in entropy econometrics are explored to return to some of the initial concerns, namely the estimation and updating of input–output systems.