This chapter presents and critically evaluates the economic assumptions and applicability of a series of regional and interregional interindustry models. It begins with the demand-driven, single-region Leontief quantity model and its cost-push price dual. Then Sect. 4 discusses the ideal, full information, interregional input-output model with interregional spillover and feedback effects at length, and compares it with the requirements and assumptions of more limited information, multi-regional input-output models. Section 5 discusses how to construct and add an interregional consumption function to obtain the Type II interregional interindustry model. Section 6 outlines further extensions, all through to the most complex price-quantity interacting interregional demo-economic model LINE. Finally, an Appendix presents a micro-economic foundation for the Leontief model, and compares it with the alternative supply-driven quantity model and its demand-pull price dual.

Original languageEnglish (US)
Title of host publicationHandbook of Regional Science
EditorsManfred M Fischer, Peter Nijkamp
Number of pages27
ISBN (Electronic)9783662607237
ISBN (Print)9783662607220
StatePublished - Jan 1 2021


  • Cost-push price model
  • Demand-pull price model
  • Demo-economic models
  • Ghosh model
  • Input-output table
  • Interregional inputoutput model
  • Interregional spillovers and feedbacks
  • Leontief model
  • Type II multipliers

ASJC Scopus subject areas

  • General Economics, Econometrics and Finance
  • General Business, Management and Accounting
  • General Earth and Planetary Sciences
  • General Social Sciences


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