Rethinking Input-Output Analysis: A Spatial Perspective (Advances in Spatial Science)

✍ Scribed by Jan Oosterhaven

• Publisher: Springer
• Year: 2022
• Tongue: English
• Leaves: 163
• Category: Library

✦ Synopsis

This textbook helps students to understand the social, economic, and environmental importance of the mutual relations between industries in the same and in different regions and nations and demonstrates how to model these relations using regional, interregional, and international input-output (IO) models. It enables readers to extend these basic IO models with endogenous household expenditures, to employ supply-use tables (SUTs) that explicitly distinguish the products used and sold by industry, and to use social accounting matrices (SAMs) that detail the generation, redistribution and spending of income. In addition to the standard demand-driven IO quantity model and its accompanying cost-push IO price model, the book also discusses the economic assumptions and usefulness of the supply-driven IO quantity model and its accompanying revenue-pull IO price model. The final chapters highlight three main applications of the IO model: (1) economic impact analysis of negative supply shocksas caused by, for example, natural disasters, (2) linkages, key sector, and cluster analysis, (3) structural decomposition analysis, especially of regional, interregional, and international growth, and demonstrate the strengths and weaknesses of these IO applications.

Written for graduate students of regional and spatial science as well as for economists and planners, this book provides a better understanding of the foundations, the power, the applicability and the limitations of input-output analysis. The second, completely revised edition expands on updating IO tables, modelling the disaster reconstruction phase, and includes an appendix on the necessary matrix algebra.

✦ Table of Contents

Preface of the First Edition
Preface of the Second Edition
Contents
List of Variables and Coefficients
Mathematical Notation
1 Introduction: Importance Interindustry Relations and Overview
References
2 Basic, Demand-Driven IO Quantity Models
2.1 Single-Region IO Tables and Their Descriptive Power
2.2 Mathematics Versus Economics of the Closed Economy IO Model
2.3 Open Economy Interregional and Multi-regional IO Models
2.3.1 Separating Trade Origin Ratios and Technical Coefficients
2.3.2 Underestimation of Interregional Spillovers and Feedbacks
References
3 Updating Different Types of IO Tables
3.1 RAS and MR-RAS: Bi- and Multi-proportional Scaling
3.2 GRAS and MR-GRAS: Including Negative Values
3.3 CRAS: Advantage of Using Time Series of IOTs
References
4 From Regional IO Tables to Interregional SU Models
4.1 Construction of Regional IO Tables: Towards Non-biased Methods
4.1.1 Most Non-survey Methods Overestimate Intra-regional Multipliers
4.1.2 CRAS: Advantage of Using Cross Sections of RIOTs
4.1.3 DE-BRIOT: Advantage of Constructing Bi-regional IOTs
4.2 Construction of Interregional Supply–Use Tables and Models
4.2.1 Difficulty of Deriving an IO Model from a Supply–Use Table
4.2.2 Family of Interregional Supply–Use Tables and Models
4.3 Difference Between Constructing Interregional and International SUTs
References
5 From Basic IO and SU Models to Demo-economic Models
5.1 Interregional Models with Endogenous Household Consumption
5.2 Further Demo-economic Model Extensions
5.3 Where to End with Endogenizing Final Demand?
References
6 Cost-Push IO Price Models and Interaction with Quantities
6.1 Forward Causality of the Single-Region IO Price Model
6.2 Interregional IO Price Model with a Price–Wage–Price Spiral
6.3 Interacting IO Price and Quantity Models: Lower Multipliers
References
7 Supply-Driven IO Quantity Model and Its Dual, Price Model
7.1 On the Plausibility of the Supply-Driven IO Quantity Model
7.1.1 Basic Supply-Driven IO Model: Factories May Run Without Labour
7.1.2 Type II Supply-Driven IO Model: More Private Cars May Run on Less Gas
7.2 Revenue-Pull IO Price Model: Its Plausible Dual
7.3 Markets: Why All Four IO Models Overestimate Their Typical Impacts
References
8 Negative IO Supply Shock Analyses: When Substitution Matters
8.1 On the Limited Usability of the IO Model in Case of Supply Shocks
8.2 Nonlinear SU Programming Alternative: Much Smaller Disaster Multipliers
8.3 Disaster Reconstruction Phase: Adding the Dynamic Leontief Model
References
9 Other IO Applications with Complications
9.1 Key Sector and Linkage Analysis: A Half-Truth
9.1.1 Analytical and Empirical Comparison of Key Sector Measures
9.1.2 Cluster and Linkage Analysis for Three Dutch Spatial Policy Regions
9.1.3 The Mostly Forgotten, Cost Side of the Coin
9.2 Structural Decomposition Analysis: Another Half-Truth
9.2.1 Shift and Share Analysis: Impact of Industry Mix
9.2.2 Structural Decomposition Analysis: A Demand-Side Story
9.2.3 Growth Accounting: The Other, Supply Side of the Coin
9.2.4 Solution: Econometric GA with SSA and SDA Components
References
10 The Future: What to Forget, to Maintain and to Extend
References
Correction to: Rethinking Input-Output Analysis
Correction to: J. Oosterhaven, Rethinking Input-Output Analysis, Advances in Spatial Science, https://doi.org/10.1007/978-3-031-05087-9
Appendix Matrix Algebra for Input–Output Analysis
References