Rethinking Input-Output Analysis

1. Front Matter

   Pages i-xv

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2. Introduction: Importance Interindustry Relations and Overview

   • Jan Oosterhaven

   Pages 1-3

3. Basic, Demand-Driven IO Quantity Models

   • Jan Oosterhaven

   Pages 5-19

4. Updating Different Types of IO Tables

   • Jan Oosterhaven

   Pages 21-34

5. From Regional IO Tables to Interregional SU Models

   • Jan Oosterhaven

   Pages 35-56

6. From Basic IO and SU Models to Demo-economic Models

   • Jan Oosterhaven

   Pages 57-72

7. Cost-Push IO Price Models and Interaction with Quantities

   • Jan Oosterhaven

   Pages 73-85

8. Supply-Driven IO Quantity Model and Its Dual, Price Model

   • Jan Oosterhaven

   Pages 87-104

9. Negative IO Supply Shock Analyses: When Substitution Matters

   • Jan Oosterhaven

   Pages 105-121

10. Other IO Applications with Complications

    • Jan Oosterhaven

    Pages 123-147

11. The Future: What to Forget, to Maintain and to Extend

    • Jan Oosterhaven

    Pages 149-152

12. Correction to: Rethinking Input-Output Analysis

    • Jan Oosterhaven

    Pages C1-C1

13. Back Matter

    Pages 153-155

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This textbook helps students to understand the social, economic, and environmental importance of the mutual relations between industries in the same and in different regions and nations and demonstrates how to model these relations using regional, interregional, and international input-output (IO) models. It enables readers to extend these basic IO models with endogenous household expenditures, to employ supply-use tables (SUTs) that explicitly distinguish the products used and sold by industry, and to use social accounting matrices (SAMs) that detail the generation, redistribution and spending of income. In addition to the standard demand-driven IO quantity model and its accompanying cost-push IO price model, the book also discusses the economic assumptions and usefulness of the supply-driven IO quantity model and its accompanying revenue-pull IO price model. The final chapters highlight three main applications of the IO model: (1) economic impact analysis of negative supply shocksas caused by, for example, natural disasters, (2) linkages, key sector, and cluster analysis, (3) structural decomposition analysis, especially of regional, interregional, and international growth, and demonstrate the strengths and weaknesses of these IO applications. 

Written for graduate students of regional and spatial science as well as for economists and planners, this book provides a better understanding of the foundations, the power, the applicability and the limitations of input-output analysis. The second, completely revised edition expands on updating IO tables, modelling the disaster reconstruction phase, and includes an appendix on the necessary matrix algebra.

• Input-output analysis
• Forward and backward linkages
• Interregional trade
• Leontief model
• Interregional spill-overs and feedbacks
• Supply-driven input-output model
• Cost-push price model
• Key sector analysis
• Structural decomposition analysis
• Disaster impact analysis

• University of Groningen, Groningen, The Netherlands

  Jan Oosterhaven

Jan Oosterhaven is Professor Emeritus of Economics at the University of Groningen (The Netherlands). His research focuses on interregional input-output analysis, indirect effects of supply shocks, and integral cost-benefit analyses of all kind of spatial and infrastructure measures. He was Editor of Economic Systems Research (1994-1998), President and Vice-President of the International Input-Output Association  (2001-2009), and won the European Regional Science Prize in 2015.

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