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Interregional Input-Output Models

  • Jan OosterhavenEmail author
  • Geoffrey J. D. Hewings
Living reference work entry

Abstract

This chapter presents and critically evaluates the economic assumptions and applicability of a series of regional and interregional interindustry models. It begins with the demand-driven, single-region Leontief quantity model and its cost-push price dual. Then Sect. 4 discusses the ideal, full information, interregional input-output model with interregional spillover and feedback effects at length, and compares it with the requirements and assumptions of more limited information, multi-regional input-output models. Section 5 discusses how to construct and add an interregional consumption function to obtain the Type II interregional interindustry model. Section 6 outlines further extensions, all through to the most complex price-quantity interacting interregional demo-economic model LINE. Finally, an Appendix presents a micro-economic foundation for the Leontief model, and compares it with the alternative supply-driven quantity model and its demand-pull price dual.

Keywords

Input-output table Leontief model Cost-push price model Interregional input-output model Interregional spillovers and feedbacks Type II multipliers Demo-economic models Ghosh model Demand-pull price model 

Notes

Acknowledgements

The authors thank the editors, Piet Rietveld and Manfred Fischer, and Dirk Stelder for useful comments.

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Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2019

Authors and Affiliations

  1. 1.Faculty of Economics and BusinessUniversity of GroningenGroningenThe Netherlands
  2. 2.Regional Economics Applications LaboratoryUniversity of IllinoisUrbana-ChampaignUSA

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