Final Demand
From Open Risk Manual
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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.
Usage
The precise nature of final demand depends on the economic system modeled and may include:
- Consumption by households
- Government expenditures
- Inventories
- Capital Formation
Formula
- f1 + f2 = GDP (=sum of final sales)
- final demand vector f
References
- Eurostat SUT Manual
