Articles
How Do We Utilize a New “Output-Output Model” and “Output-Output Table”?
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AuthorHo Un Gim
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Year2009
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VolumeVol.57
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NumberNo.2
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Gim and Kim(2008a, 2008c) recently found out that there is no consecutive
connection between the Leontief inverse ? and the total output and that
there are some limits to computing the impact effects of the initial change of
output. Thus a new “output-output(OO) model” was developed by the authors
to solve the consecutive connection and overestimation problems very naturally
based on the output requirements matrix for output ? .
On the basis of the latest research findings mentioned above, the specific
objectives of this paper are summarized as follows. (1) We reexamine the
merits and demerits of different types of input-output(IO) models: the demand
side, the supply side, and the mixed type. (2) We perform a comparative
analysis between the IO and OO models in structure and characteristics and
illustrate the usefulness and validity of the OO model. (3) We derive the
relevant equations between the cause and effect variables, which are needed to
compute induced effects, multiplier effects, and linkage effects by using the
newly developed OO model and table. (4) We present some valid application
examples, focusing on the empirical economic analysis based on raw data of 2003 Input-Output Tables compiled by the Bank of Korea.
The major findings from the empirical analysis are followed below. We
calculated the output, employment, and income multipliers and the impact and
sensitivity coefficients for final demand and output through the Leontief inverse
? and the output requirements matrix for output ? . The Spearman’s rank
correlation coefficients( ????), ? , are specially computed to observe the
relevant structural economic characteristics of each sector between two types of
employment multipliers, income multipliers and sensitivity coefficients. The
???? between employment multipliers is 0.9878 and that between income
multipliers is 0.9402 and that between sensitivity coefficients is 0.9962. The
higher values which are closer to 1 signify that the entire priority ranks
between multipliers(or coefficients) are almost the same throughout the whole
sector. -
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