Direct and Indirect Requirements for Gross Output in Input–output Analysis(*)

Abstract

In input-output analysis the concept of total (direct and indirect) requirements is usually related to sectoral final outputs. For each particular final product Yi total output requirements and total primary input requirements are measured respectively by : and where X $ ) = vector of sectoral gross outputs required directly and in-W$) = vector of primary inputs required directly and indirectly by Y(i);A , = primary input coefficient matrix; Y(i) = vector of elements equal to zero except the i-th one, which is directly by Y(i);

Input–output Analysis: The Next 25 Years

“…But what is mathematically unviable might nonetheless be economically countable, and provided we are careful not to use a causal interpretation, we would be just fine accountingwise. A first step would be to start from measuring direct and indirect requirements as in Parikh (1975), Milana (1985, Jeong (1982Jeong ( , 1984, Gim and Kim (1998), and more recently Sancho (2012).…”

Blocks and circularity in labour requirements: An interplay between clusters and subsystems in the EU

“…Such extension was already envisaged by Miyazawa (1966), and further developed in Miyazawa (1971), who studied "the interdependence between service and goods-producing sectors", partitioning the IO matrix according to this criterion. A similar idea was also put forward by Milana (1985), who posed the question of how to build subsystems for gross, rather than net, output, exploiting Miyazawa's internal and external matrix multipliers. 5 A key point of computing internal and external multipliers is that of measuring feedback and spillover effects.…”

“…4 In what follows, the terms 'subsystem' and 'vertically integrated sector' will be interchangeably used. 5 Building on Milana (1985), Heimler (1991) computed what he called the industries' degree of vertical integration, i.e. the ratio of value added directly or indirectly due to each industry's gross output to total value added.…”

Hypothetical Integration in a Social Accounting Matrix and Fixed-Price Multiplier Analysis

“…For instance, Khan and Thorbecke (1989) subdivided sectors (mainly agriculture) into modern and traditional ones to make evident technological dualism, namely the difference in technologies used. Cella (1984), Milana (1985), Clements (1990), andDietzenbacher, van der Linden, andSteenge (1993), in order to estimate the true value of a sector, engaged in hypothetical extraction by replacing the sector's domestic use and supply of goods with imports, thus eliminating an existing sector's linkages to the rest of the economy. This paper focuses on a simple integration of a new hypothetical sector, called EPWP social sector (or EPWP in short) from an exogenous injection into the SAM by modifying the scale of the new sector.…”