Difference between revisions of "Total Output"
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== Definition == | == Definition == | ||
| − | '''Total Output''' in the context of an [[Input-Output Matrix]] denotes the total production of a particular sector. An [[Input-Output Model]] is fundamentally a system of linear equations where the Total Output of an industry is distributed through sales to other sectors and to [[Final Demand]] | + | '''Total Output''' in the context of an [[Input-Output Matrix]] denotes the total production of a particular sector (or product). An [[Input-Output Model]] is fundamentally a system of linear equations where the Total Output of an industry is distributed through sales to other sectors and to [[Final Demand]] |
== Usage == | == Usage == | ||
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:<math> | :<math> | ||
\begin{align} | \begin{align} | ||
| − | x_{i} & = \sum_{j=1}^{n} x_{j} | + | x_{i} & = \sum_{j=1}^{n} a_{ij} x_{j} + y_i \\ |
\end{align} | \end{align} | ||
</math> | </math> | ||
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== Further Resources == | == Further Resources == | ||
| − | * [https://www.openriskacademy.com/ | + | * [https://www.openriskacademy.com/course/view.php?id=70 Crash Course on Input-Output Model Mathematics] |
| + | * [https://www.openriskacademy.com/course/view.php?id=64 Introduction to Input-Output Models using Python] | ||
== References == | == References == | ||
Latest revision as of 18:45, 16 November 2023
Definition
Total Output in the context of an Input-Output Matrix denotes the total production of a particular sector (or product). An Input-Output Model is fundamentally a system of linear equations where the Total Output of an industry is distributed through sales to other sectors and to Final Demand
Usage
Total Output is an additional column in the IO matrix that contains the sum of Intermediate Output and final demand. It can be interpreted as market balance equation in a standard Leontief Model.
Formula
Assume that the economy can be categorized into n sectors. Total Output is a vector, usually denoted as 
, with i ranging between 1 and n which satisfies the system of linear equations:
