Therefore, economists often use location quotients to create regional multipliers starting from national data. While national input–output tables are commonly created by countries' statistics agencies, officially published regional input–output tables are rare. The Leontief system can be extended to a model of general equilibrium it offers a method of decomposing work done at a macro level. A great deal of empirical work has been done to identify coefficients, and data has been published for the national economy as well as for regions. There has been research on disaggregation to clustered inter-industry flows, and on the study of constellations of industries. There is the Hawkins–Simon condition on producibility. There is extensive literature on these models. Say that we have an economy with n Further research Each column of the input–output matrix shows the monetary value of inputs to each sector and each row represents the value of each sector's outputs. Sectors may also depend internally on a portion of their own production as delineated by the entries of the matrix diagonal. This format, therefore, shows how dependent each sector is on every other sector, both as a customer of outputs from other sectors and as a supplier of inputs. In the inter-industry matrix, column entries typically represent inputs to an industrial sector, while row entries represent outputs from a given sector. The model depicts inter-industry relationships within an economy, showing how output from one industrial sector may become an input to another industrial sector. Leontief was the first to use a matrix representation of a national (or regional) economy. Karl Marx's economics provided an early outline involving a set of tables where the economy consisted of two interlinked departments. Wassily Leontief's work in the input–output model was influenced by the works of the classical economists Karl Marx and Jean Charles Léonard de Sismondi. Remington, who has argued that their work provided a link between Quesnay's tableau économique and the subsequent contributions by Vladimir Groman and Vladimir Bazarov to Gosplan's method of material balance planning. Īlexander Bogdanov has been credited with originating the concept in a report delivered to the All Russia Conference on the Scientific Organisation of Labour and Production Processes, in January 1921. 5 Input–output analysis versus consistency analysisįrancois Quesnay had developed a cruder version of this technique called Tableau économique, and Léon Walras's work Elements of Pure Economics on general equilibrium theory also was a forerunner and made a generalization of Leontief's seminal concept.3.1 Input–output and socialist planning.

Kubota input output model