input–output analysis

﻿
input–output analysis

economic analysis developed by the 20th-century Russian-born U.S. economist Wassily W. Leontief, in which the interdependence of an economy's various productive sectors is observed by viewing the product of each industry both as a commodity demanded for final consumption and as a factor in the production of itself and other goods. Certain simplifying assumptions are made, such as that productive resources will always be combined in the same proportions to produce any amount of a final product. Then it is possible to determine the total quantities of various goods that must be produced to obtain a given amount for final consumption.

The analysis usually involves constructing a table in which each horizontal row describes how one industry's total product is divided among various production processes and final consumption. Each vertical column denotes the combination of productive resources used within one industry. If, for example, the first row of a table for a very simple economy describes the distribution of the total production of trucks, it would show that a certain quantity of trucks is used in the production of more trucks, a certain quantity in the production of agricultural commodities, a certain quantity in the production of houses, a certain quantity by private households, and so on. If the numbers are added across the row, the total quantity of trucks produced is obtained. A table of this type illustrates the dependence of each industry on the products of other industries: for example, an increase in food output is also seen to require an increase in the production of trucks.

Input–output tables can be constructed for whole economies or for segments within economies. They are useful in planning the production levels in various industries necessary to meet given consumption goals and in analyzing the effects throughout the economy of changes in certain components. They have been most widely used in planned economies and in developing countries.

* * *

Universalium. 2010.

Look at other dictionaries:

• Input-Output Analysis — is an economics term that refers to the study of the effects that different sectors have on the economy as a whole, for a particular nation or region. This type of economic analysis was originally developed by Wassily Leontief (1905 – 1999) …   Investment dictionary

• input-output analysis — noun (economics) A method of studying an economy as a whole by analysing the relationship between the input and output of each industry • • • Main Entry: ↑input …   Useful english dictionary

• input-output analysis — Economic analysis developed by Wassily Leontief, in which the interdependence of an economy s various productive sectors is observed by viewing the product of each industry both as a commodity for consumption and as a factor in the production of… …   Universalium

• input-output analysis — /ɪnpʊt ˈaʊtpʊt əˌnæləsəs/ (say inpoot owtpoot uh.naluhsuhs) noun 1. the analysis of the results of electronic data processing. 2. Economics a method of tracing the connection between products and the resources required to produce them …   Australian English dictionary

• input/output — UK US adjective (ABBREVIATION I/O) ► IT relating to the process of receiving and sending information to and from a computer or the pieces of equipment involved in the process: » Some input/output controllers also offer Ethernet connectivity… …   Financial and business terms

• input-output table — input output table, a numerical table which breaks down the economy into various industrial groups, used in input output analysis …   Useful english dictionary

• Input-output model — The Input output model of economics uses a matrix representation of a nation s (or a region s) economy to predict the effect of changes in one industry on others and by consumers, government, and foreign suppliers on the economy. This model, if… …   Wikipedia

• International Input-Output Association — The International Input Output Association (IIOA) is a scientific, non profit, membership organization founded in 1988. It is rooted in the field of input output economics, developed by Nobel Laureate Wassily Leontief. Leontief started from the… …   Wikipedia

• analysis — /euh nal euh sis/, n., pl. analyses / seez /. 1. the separating of any material or abstract entity into its constituent elements (opposed to synthesis). 2. this process as a method of studying the nature of something or of determining its… …   Universalium

• Analysis — (from Greek ἀνάλυσις , a breaking up ) is the process of breaking a complex topic or substance into smaller parts to gain a better understanding of it. The technique has been applied in the study of mathematics and logic since before Aristotle,… …   Wikipedia