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1 results

  • 3 - Input–Output Models at the Regional Level

  • Ronald E. Miller, University of Pennsylvania, Peter D. Blair
  • Book:
    Input-Output Analysis
    Published online:
    06 January 2022
    Print publication:
    13 January 2022, pp 63-111

  • Summary

    Chapter 3 extends the basic input–output framework to analysis of regions and the relationships between regions. First, “single-region” models are presented and the various assumptions employed in formulating regional models versus national models are explored. Next, the structure of an interregional input–output (IRIO) model, designed to expand the basic input–output framework to capture transactions between industrial sectors in regions, is presented. An important simplification of the IRIO model designed to deal with the most common of data limitations in constructing such models is known as the multiregional input–output (MRIO) model. The basic MRIO formulation is presented and the implications of the simplifying assumptions explored as well as the balanced regional model which captures the distinction between industrial production for regional versus national markets. Finally, the chapter summarizes the fast-growing range of applications of MRIO to multinational and global economic models and issues.