Closed Input-Output Model
From Open Risk Manual
Definition
A Closed Input-Output Model is any Input-Output Model that includes all modeled economic transactions and transfers between all economic agents.
Usage
The closed IO model is a form which captures directly the link between Value Added and Final Demand components).
Historically the first versions of economic input-output models, as proposed by Leontief where of the closed type. They were replaced by open static models, that are easier to handle.
Closed models are used when the interrelations between the distribution of household incomes and production is significant.
Graph Interpretation
In terms of network or graph language, a closed input-output model does not involve any source or sink nodes.
