Return of the capital coefficients matrix

Albert Steenge*, Rachel Reyes

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

2 Citations (Scopus)
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A core ingredient of post-disaster input–output recovery models is the reconstruction of lost production capacity. Therefore, one would expect a set of models endowed with capital coefficients matrices to be available for analysis. However, this is not the case, possibly due to earlier negative experiences with such models. Nevertheless, in this paper, we aim to show that there is a class of problems that can be addressed successfully with a dynamic input–output model with a fully functioning capital coefficients matrix. We put forward that if reconstruction is tightly planned, investment and therewith gross output essentially become pre-determined. This also means that traditional final demand becomes an endogenous residual, with the model being transformed into a distribution and allocation model. We begin with a reordering of variables and equations as proposed in Leontief’s dynamic inverse, and then move on directly to the newly proposed model. Suggestions for further work are given.

Original languageEnglish
Pages (from-to)439-450
Number of pages12
JournalEconomic Systems Research
Issue number4
Early online date28-Feb-2020
Publication statusPublished - Dec-2020


  • Dynamic input-output analysis
  • post-disaster reconstruction
  • capital coefficients matrix

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