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Interindustry Model for Analyzing the Regional Impacts of Forest Resource and Related Supply Constraints

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Abstract:

Impact analysis, traditionally, has emphasized demand relationships; but contemporary shortages of natural resources suggest that supply-side questions be given more attention. Primary inputs (i.e., value added, plus imports), like final demand, are important determinants of regional growth. We describe a simple, straightforward adaptation of the conventional Leontief interindustry model which provides a convenient means to analyze changes in the supply of primary inputs. We use existing data for the Douglas County, Oregon, economy to illustrate the use of supply multipliers. First, we used the supply model, in conjunction with the demand model, to contrast the total, including induced, effects of importing logs and increasing the local timber supply by departing from the even-flow policy. Because public timber supply policies may affect Douglas County's investment climate, we also analyzed the economic effects of capital funds flowing from, as compared to funds flowing into, the County. Forest Sci. 29:384-394.

Keywords: Input/output supply model; supply and demand multipliers

Document Type: Journal Article

Affiliations: Professor of Agricultural and Applied Economics, University of Minnesota, St. Paul, MN 55108

Publication date: June 1, 1983

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