The Economics of Input-Output Analysis

A graduate-level textbook which surveys the most recent developments in input-output analysis and their applications.

Thijs ten Raa (Author)

9780521841795, Cambridge University Press

Hardback, published 19 January 2006

212 pages, 17 tables
24.4 x 17 x 1.3 cm, 0.54 kg

'Wassily Leontief defined and used input-output analysis in the modern era. He and his close followers took the subject far during the 20th century. Thijs ten Raa has taken the established system of economic analysis imbedded in input-output analysis and shown how it underlies the wide body of thought in the whole of the economy's supply side and production activities, both theoretical and applied, in a masterly treatment.' Lawrence R. Klein, University of Pennsylvania, and 1980 winner of the Nobel Memorial Prize in Economics

Input-output analysis is the main tool of applied equilibrium analysis. This textbook provides a systematic survey of the most recent developments in input-output analysis and their applications, helping us to examine questions such as: which industries are competitive? What are the multiplier effects of an investment program? How do environmental restrictions impact on prices? Linear programming and national accounting are introduced and used to resolve issues such as the choice of technique, the comparative advantage of a national economy, its efficiency and dynamic performance. Technological and environmental spillovers are analysed, both at the national level (between industries) and the international level (the measurement of globalisation effects). The book is self-contained, but assumes some familiarity with calculus, matrix algebra, and the microeconomic principle of optimizing behaviour. Exercises and review questions are included at the end of each chapter, and solutions at the end of the book.

Preface
1. Introduction
2. Input-output basics
3. Multiplier effects
4. Linear programming
5. Are input-output coefficients fixed?
6. The system of national accounts
7. The construction of technical coefficients
8. From input-output coefficients to the Cobb-Douglas function
9. The diagnosis of inefficiency
10. Input-output analysis of international trade
11. Environmental input-output economics
12. Productivity growth and spillovers
13. The dynamic inverse
14. Stochastic input-output analysis.

Subject Areas: Development economics & emerging economies [KCM], Microeconomics [KCC]