Input-output tables indicate the flows of goods between industries.
Mathematıcal Economıcs (ENG) — Ünite 4 Soru-Cevap
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What does the input-output table show?
What does the input table provide information about?
A table gives information about
how much intermediate goods should be used for
one unit of output.
What does the input-output table provide information about?
It is important to use tables that are netted of imports for the domestic economic analysis.
What do the rows and columns indicate in the input-output table?
Row indicates supply and column indicates
demand. In other words, there are producers of goods and buyers of goods in each industry.
How is total output defined?
Total output = Industries those used intermediate goods + Household expenditure + Government
expenditure + Investment expenditure + Export
What is the relationship between total outlays and output in the input-output table?
In the inputoutput
table, total outlays and total output are equal to each other
Can many economic factors be used as inputs for the production process in every industry?
For the production process in each
industry, many economic factors can be used as inputs. This requires a larger input-output table.
How are input coefficients defined?
To estimate contribution from industries to output, each industry’s input can be divided by the total
output of that industry. This will simply give how much input is directly required for one unit of output.
What does xij indicate in formula aij = xij /X j ?
xij represents inputs in
an industry
What does Xj indicate in formula aij = xij /X j ?
Xj is the total output of that industry
What does l =Li/ Xj indicate?
l =Li/X j shows direct required labor for one unit of output.
What is Li in equation l =Li/ Xj ?
Li is labor engaged in the production in an
industry. This is necessary to estimate labor productivity
What does w=wi/X j indicate?
w=wi/X j indicates how much wage is directly required for one unit of output.
What is wi in equation w=wi/X j?
Wi is the compensation of employees in an industry. This is used to calculate wage cost.
What does m=Mi/ X j indicate?
m=Mi/ X j indicates direct import dependency or how much imported intermediate goods are directly required for one unit of output.
What is Mi in equation m=Mi/ X j?
Mi is the imported intermediate goods in an industry. This is required to
calculate import dependency.
What does A represent in the equation AX+F=X?
A represents technological coefficients’ matrix
What does F represent in the equation AX+F=X?
F is the vector of final demand
What does X represent in the equation AX+F=X?
X is the vector of
output.
How is the Wassily W. Leontief inverse matrix defined?
(I - A)-1
The inverse matrix laid out above is expressed as the Leontief inverse matrix coefficients. This inverse matrix can be derived by using the technological matrix coefficients discussed in the previous section. The equation indicates how much intermediate production is directly and indirectly required for one unit of output in each industry.