Basic, Demand-Driven IO Quantity Models

What is it about?

This chapter introduces the single-region, the interregional and the multi-regional input-output (IO) table, and the differences between the IO models based on these three sets of data. The crucial intermediate input coefficients are shown to represent the product of a technical coefficient and an intra-regional self-sufficiency ratio in case of the single-region IO model, plus interregional import coefficients in case of both types of multi-region models. Besides, it is shown that it is better to work with the dimensionless normalized income, employment, emissions and other impact multipliers than with the ordinary multipliers of exogenous final demand. Finally, the nature of interregional spillover and feedback effects is explained, and why both are under-estimated by the single-region model.

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