Balanced Input-Output Model

Definition

Balanced Input-Output Model refers to adjustments that may be necessary to perform on an Input-Output Model that is constructed on the basis of imperfect data to ensure that any applicable fundamental identities are satisfied.

Examples

• Total Supply must equal Total Use in a Supply And Use Framework
• Total Output equals Intermediate Consumption plus Value Added
• The RAS Technique is often employed to balance a Social Accounting Matrix

SAMS, by their structural requirements and conventions, e.g., requiring a square transactions matrix with row and column totals equal, are useful for reconciling different sources of data that may be inconsistent.