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On the Relationship between the Supply-Driven and the Demand-Driven Input — Output Model

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  • E Dietzenbacher

    (Econometrics Institute, University of Groningen, 9700 AV Groningen, The Netherlands)

Abstract

In this paper, the relationship between the assumptions in the supply-driven and the demand-driven input-output model is discussed. A necessary and sufficient condition is given for the stability of the input coefficients, the output coefficients, and both coefficients. For both models, the effects of a demand pull on the total outputs and on the primary inputs are analytically expressed. Also, the effects of a supply push on the total outputs and on the final outputs are expressed, again for both models. In general, the assumption of fixed input coefficients in the demand-driven model does not hold, but computations are still based on it. A necessary and sufficient condition is given for the correctness of the computed total outputs, both for a demand pull and a supply push. Similar results are obtained for the supply-driven input — output model.

Suggested Citation

  • E Dietzenbacher, 1989. "On the Relationship between the Supply-Driven and the Demand-Driven Input — Output Model," Environment and Planning A, , vol. 21(11), pages 1533-1539, November.
    • Handle: RePEc:sae:envira:v:21:y:1989:i:11:p:1533-1539
    DOI: 10.1068/a211533
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    References listed on IDEAS

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    1. Bon, Ranko, 1986. "Comparative stability analysis of demand-side and supply-side input-output models," International Journal of Forecasting, Elsevier, vol. 2(2), pages 231-235.
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    Cited by:

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    3. Cooper, Samuel J.G. & Allen, Stephen R. & Gailani, Ahmed & Norman, Jonathan B. & Owen, Anne & Barrett, John & Taylor, Peter, 2024. "Meeting the costs of decarbonising industry – The potential effects on prices and competitiveness (a case study of the UK)," Energy Policy, Elsevier, vol. 184(C).
    4. Erik Dietzenbacher & Ronald E. Miller, 2015. "Reflections On The Inoperability Input--Output Model," Economic Systems Research, Taylor & Francis Journals, vol. 27(4), pages 478-486, December.

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