Interregional Input-Output Models

Jan Oosterhaven*, G. J. D. Hewings

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingChapterAcademicpeer-review

Abstract

This chapter presents and critically evaluates the economic assumptions and applicability of a series of regional and interregional interindustry models. It begins with the demand-driven, single-region Leontief quantity model and its cost-push price dual. Then Sect. 4 discusses the ideal, full information, interregional input-output model with interregional spillover and feedback effects at length, and compares it with the requirements and assumptions of more limited information, multi-regional input-output models. Section 5 discusses how to construct and add an interregional consumption function to obtain the Type II interregional interindustry model. Section 6 outlines further extensions, all through to the most complex price-quantity interacting interregional demo-economic model LINE. Finally, an Appendix presents a micro-economic foundation for the Leontief model, and compares it with the alternative supply-driven quantity model and its demand-pull price dual.
Original languageEnglish
Title of host publicationHandbook of Regional Science
EditorsM.M. Fischer, P. Nijkamp
Place of PublicationBerlin/Heidelberg
PublisherSpringer
Pages397-423
Number of pages27
ISBN (Electronic)978-3-662-60723-7
ISBN (Print)978-3-662-60722-0
DOIs
Publication statusPublished - 2021

Keywords

  • Input-output table
  • Leontief model
  • Cost-push price model
  • Interregional input-output model
  • Interregional spillovers and feedbacks
  • Type II multipliers
  • Demo-economic models
  • Ghosh model
  • Demand-pull price model

Cite this