The Economics of Input-Output Analysis

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Cambridge University Press, 2005 - Business & Economics - 197 pages
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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.
  

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Contents

Introduction
1
Inputoutput basics
14
Multiplier effects
25
Linear programming
37
Are inputoutput coefficients fixed?
54
The System of National Accounts
65
The construction of technical coefficients
87
From inputoutput coefficients to the CobbDouglas
99
Inputoutput analysis of international trade
125
Environmental inputoutput economics
139
Productivity growth and spillovers
151
The dynamic inverse
166
Stochastic inputoutput analysis
176
Solutions to exercises
183
Indt A
192
Copyright

The diagnosis of inefficiency
108

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About the author (2005)

Thijs ten Raa is Associate Professor of Economics at Tilburg University.

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