Generalized Input-Output Analysis

Definition

Generalized Input-Output Analysis denotes an extension of the classic Input-Output Model (whether single or multi-region) to incorporate additional quantitative considerations that are not purely economic in nature. In particular, an Augmented Leontief Model denotes any extension of the fundamental Leontief Model for input-output analysis.

Usage

In order to trace social and environmental impacts, both input –output models can be extended to account for so-called production factors (such as employment, resources, pollution etc) associated with economic activity, and are then referred to as generalised input-output models.

A general pattern in generalized IO analysis is to link the core economic network model with satellited accounts or models that link economic phenomena to other dimensions of interest (e.g. energy or material flows or environmental impact).

Formula

A vector of coefficients f is defined, where each element fj represents the impact (use, release, quantity) in terms of the production factor (in its own physical units) associated with one unit of gross output xj of sector j.

Issues and Challenges

• Extensions must respect fundamental constraints applicable in the enlarge system (e.g. energy conservation)

See Also

• Energy Input-Output Analysis
• Environmental Input-Output Model

Further Resources

• Crash Course on Input-Output Model Mathematics
• Introduction to Input-Output Models using Python