A study on the building of a new 'output-output model' and its usefulness: based on a comparative analysis of the input-output model

摘要

This paper describes the building of a new open static "output-output" (O-O) model in comparison to the open static input-ouput (I-O) model developed by Leontief (Rev Econ Stat 18:105-125, 1936). While the I-O model can be characterized as a system that relates final demand to gross output, the O-O model relates gross output for final demand (endogenous or exogenous) to gross output for output (endogenous). We perform a comparative analysis between the two models in structure and characteristics and illustrate the usefulness of the O-O model, for example, by formulating I-O multipliers that can accept output as an initial change. The comprehensive analysis conducted in this paper, including a numerical illustration with an example, shows that the two models form a mutually supplementary relationship and could give rise to a fundamental framework for the analyses of various regional and national economic activities.