Difference between revisions of "Input-Output Matrix"
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== Definition == | == Definition == | ||
The '''Industry Transaction Matrix''' (o Transactions Table) is the fundamental quantitative information used in [[Input-Output Analysis]]. It concerns the flow of products from each industrial sector (considered as a producer) to each of the sectors, itself and others (considered as consumers). | The '''Industry Transaction Matrix''' (o Transactions Table) is the fundamental quantitative information used in [[Input-Output Analysis]]. It concerns the flow of products from each industrial sector (considered as a producer) to each of the sectors, itself and others (considered as consumers). | ||
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== Formula == | == Formula == | ||
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\end{align} | \end{align} | ||
</math> | </math> | ||
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+ | * The entries of the matrix may denote either monetary values (in some defined currency) or physical (activity) values, e.g. volumes. | ||
+ | * The matrix is a flow matrix, hence values refer to a particular time period. | ||
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+ | == Usage == | ||
+ | This basic information from which an input-output model is developed is contained in an interindustry transactions table. The rows of such a table describe the distribution of a producer’s output throughout the economy. The columns describe the composition of inputs required by a particular industry to produce its output. | ||
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+ | The Matrix is of fundamental importance and may underpin alternative possible [[Input-Output Model | input-output models]]. | ||
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== References == | == References == |
Revision as of 11:46, 2 March 2022
Contents
Definition
The Industry Transaction Matrix (o Transactions Table) is the fundamental quantitative information used in Input-Output Analysis. It concerns the flow of products from each industrial sector (considered as a producer) to each of the sectors, itself and others (considered as consumers).
Formula
- Usually denoted as Z, if there are n sectors in an economy the matrix reads:
- The entries of the matrix may denote either monetary values (in some defined currency) or physical (activity) values, e.g. volumes.
- The matrix is a flow matrix, hence values refer to a particular time period.
Usage
This basic information from which an input-output model is developed is contained in an interindustry transactions table. The rows of such a table describe the distribution of a producer’s output throughout the economy. The columns describe the composition of inputs required by a particular industry to produce its output.
The Matrix is of fundamental importance and may underpin alternative possible input-output models.