Difference between revisions of "Final Demand"
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== Definition == | == Definition == | ||
'''Final Demand''' or final consumption in the context of an [[Input-Output Model]] denotes the ultimate destination of goods and services used up by individual households or the community to satisfy their individual or collective needs or wants. | '''Final Demand''' or final consumption in the context of an [[Input-Output Model]] denotes the ultimate destination of goods and services used up by individual households or the community to satisfy their individual or collective needs or wants. | ||
| + | |||
| + | == Formula == | ||
| + | |||
| + | === Single Region Case === | ||
| + | In the single region case final demand is a vector (usually denoted as '''f''') and depicted as a column next to the [[Input-Output Matrix]]. | ||
| + | |||
| + | === Multi-Region Case === | ||
| + | In the multi-region case, the global final demand a tensor, usually represented as a matrix of vectors and denoted as "Y": | ||
| + | |||
| + | :<math> | ||
| + | \begin{align} | ||
| + | Y^{pq}_{i} = | ||
| + | \begin{pmatrix} | ||
| + | Y_{1,1} & Y_{1,2} & \cdots & Y_{1,k} \\ | ||
| + | Y_{2,1} & Y_{2,2} & \cdots & Y_{2,k} \\ | ||
| + | \vdots & \vdots & \ddots & \vdots \\ | ||
| + | Y_{k,1} & Y_{k,2} & \cdots & Y_{k,k} | ||
| + | \end{pmatrix} | ||
| + | \end{equation} | ||
| + | </math> | ||
| + | with the final demand vector of domestic (country q) production in the main diagonal and direct imports to final demand from country p captured by off-diagonal vectors. | ||
== Usage == | == Usage == | ||
| Line 9: | Line 30: | ||
* [[Capital Formation]] | * [[Capital Formation]] | ||
| + | Adjusting final demand is and exploring economic implications is a core element of [[Input-Output Analysis]]. | ||
| − | == | + | == Notes == |
| − | + | The sum of final demand equals to GDP (=sum of final sales) | |
| − | |||
| + | == Code == | ||
| + | * [https://github.com/konstantinstadler/pymrio pymrio]] | ||
== References == | == References == | ||
| Line 22: | Line 45: | ||
{{#set:Has Formula = HAS_FORMULA}} | {{#set:Has Formula = HAS_FORMULA}} | ||
| + | {{#set:Has C = HAS_CODE}} | ||
__SHOWFACTBOX__ | __SHOWFACTBOX__ | ||
Revision as of 15:07, 2 March 2022
Contents
Definition
Final Demand or final consumption in the context of an Input-Output Model denotes the ultimate destination of goods and services used up by individual households or the community to satisfy their individual or collective needs or wants.
Formula
Single Region Case
In the single region case final demand is a vector (usually denoted as f) and depicted as a column next to the Input-Output Matrix.
Multi-Region Case
In the multi-region case, the global final demand a tensor, usually represented as a matrix of vectors and denoted as "Y":
- Failed to parse (unknown function "\end"): \begin{align} Y^{pq}_{i} = \begin{pmatrix} Y_{1,1} & Y_{1,2} & \cdots & Y_{1,k} \\ Y_{2,1} & Y_{2,2} & \cdots & Y_{2,k} \\ \vdots & \vdots & \ddots & \vdots \\ Y_{k,1} & Y_{k,2} & \cdots & Y_{k,k} \end{pmatrix} \end{equation}
with the final demand vector of domestic (country q) production in the main diagonal and direct imports to final demand from country p captured by off-diagonal vectors.
Usage
The precise nature of final demand depends on the economic system modeled and may include:
- Consumption by households
- Government expenditures
- Inventories
- Capital Formation
Adjusting final demand is and exploring economic implications is a core element of Input-Output Analysis.
Notes
The sum of final demand equals to GDP (=sum of final sales)
Code
References
- Eurostat SUT Manual
