Input–Output Analysis

All economies are characterized by a degree of interdependence between firms, households, and government; the input–output system of accounts provides a framework for measuring the strength of these linkages. From these accounting systems, an input–output model can be developed to trace the way in which changes in one part of the system affect the whole economy. Most recent developments have placed the input–output accounts within computable general equilibrium and other more integrated models that enable consideration of both supply and demand changes within the economy. Further research has explored dynamic versions of these models as well as their presentation within multiregional frameworks to capture interdependencies over space.