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Note on the Decomposition by Factors in Direct AND Indirect Requirements

Author

Listed:
  • Hu Un Gim

    (Keimyung University)

  • Koonchan Kim

    (Keimyung University)

Abstract

The decomposition by factors in direct and indirect requirements was introduced by Gim and Kim(2005). More specifically, the notion of direct and indirect input requirements of commodity to produce a unit of gross output of commodity j, r , can be decomposed into the direct, the technical indirect effects, and that to support a unit of final demand of commodity , can be decomposed into the direct, the technical indirect, and the interrelated indirect effects in the open static input-output model. This note provides a complementation of the decomposition, which is based on more accurate and consecutively meaningful general relation given by , where the element of the Leontief inverse ij represents the direct and indirect output requirements to support a unit of final demand.

Suggested Citation

  • Hu Un Gim & Koonchan Kim, 2008. "Note on the Decomposition by Factors in Direct AND Indirect Requirements," Korean Economic Review, Korean Economic Association, vol. 24, pages 259-282.
    • Handle: RePEc:kea:keappr:ker-20080630-24-1-10
    as

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    References listed on IDEAS

    as
    1. Louis De Mesnard, 2002. "NoteAbout the Concept of “Net Multipliers”," Journal of Regional Science, Wiley Blackwell, vol. 42(3), pages 545-548, August.
    2. Gim, Ho Un & Kim, Koonchan, 1998. "The General Relation between Two Different Notions of Direct and Indirect Input Requirements," Journal of Macroeconomics, Elsevier, vol. 20(1), pages 199-208, January.
    3. Jan Oosterhaven & Dirk Stelder, 2002. "Net Multipliers Avoid Exaggerating Impacts: With A Bi–Regional Illustration for the Dutch Transportation Sector," Journal of Regional Science, Wiley Blackwell, vol. 42(3), pages 533-543, August.
    4. Leontief, Wassily, 1970. "Environmental Repercussions and the Economic Structure: An Input-Output Approach," The Review of Economics and Statistics, MIT Press, vol. 52(3), pages 262-271, August.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Decomposition by Factors; General Relation; Consecutive Connection; Direct and Indirect Requirements; Leontief Inverse; Open Static Input-Output Model;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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