Managerial Economics in a Global Economy

Chapter 5: Appendix Input-Output Forecasting

PowerPoint Slides by Robert F. Brooker

Harcourt, Inc. items and derived items copyright 2001 by Harcourt, Inc.

Input-Output Forecasting
Three-Sector Input-Output Flow Table
Producing Industry Supplying Industry A B C Value Added Total A 20 80 40 60 200 B 60 90 30 120 300 C 30 20 10 40 100 Final Demand 90 110 20 220 Total 200 300 100 220

PowerPoint Slides by Robert F. Brooker

Harcourt, Inc. items and derived items copyright 2001 by Harcourt, Inc.

Input-Output Forecasting
Direct Requirements Matrix
Direct Requirements
=

Input Requirements Column Total

Producing Industry

Supplying Industry A B C

A 0.1 0.4 0.2

B 0.2 0.3 0.1

C 0.3 0.2 0.1

PowerPoint Slides by Robert F. Brooker

Harcourt, Inc. items and derived items copyright 2001 by Harcourt, Inc.

Input-Output Forecasting
Total Requirements Matrix
Producing Industry Supplying Industry A B C A 1.47 0.96 0.43 B 0.51 1.81 0.31 C 0.60 0.72 1.33

PowerPoint Slides by Robert F. Brooker

Harcourt, Inc. items and derived items copyright 2001 by Harcourt, Inc.

Input-Output Forecasting
Total Requirements Matrix
1.47 0.96 0.43 0.51 1.81 0.31 0.60 0.72 1.33

Final Total Demand Demand Vector Vector

90 110 20

200 300 100

PowerPoint Slides by Robert F. Brooker

Harcourt, Inc. items and derived items copyright 2001 by Harcourt, Inc.

Input-Output Forecasting
Revised Input-Output Flow Table
Producing Industry Supplying Industry A B C A 22 88 43 B 62 93 31 C 31 21 10 Final Demand 100 110 20 Total 215 310 104

PowerPoint Slides by Robert F. Brooker

Harcourt, Inc. items and derived items copyright 2001 by Harcourt, Inc.