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Contributions to Change in the Input-Output Model: The Search for Inverse Important Coefficients

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The relationship between changes in input-output structural coefficients and changes in the coefficients of the Leontief inverse is explained in a calculus-based framework. Knowledge of this relationship is essential for understanding how structural changes in one sector are transmitted across the economy, and is useful in forming updates to I-O tables given limited information. Empirically, we identify those coefficients likely to be the most important in causing inverse changes. We find that a selective and systematic updating procedure can lead to accurate updates without the need for complete data.

Document Type: Original Article


Affiliations: Department of Economics, Allegheny College, Meadville, PA 16335, U.S.A.

Publication date: 1997-05-01

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