Mineral

Economics

Input Output Analysis

Rini Novrianti Sutardjo Tui

Input Output Table (Transaction Table)

Input
Structure

In-between Demand

Output
Allocation

Production Sectors

In-between Input

Quadrant I

Final
Demand

Supply
Import

Quantity of
Output

Quadrant II

Sector 1

x11

x12

x13

F1

M1

X1

Sector 2

x21

x22

x23

F2

M2

X2

Sector 3

x31

x32

x33

F3

M3

X3

Primary Input
Total Input

Quadrant III
V1

V2

V3

X1

X2

X3

Codes of Sectors

Operational Data
Output
Value of goods and services produced by domestic
sectors

In-between Transaction
Transaction between consuming sectors and
producing sectors

Final Demand and Import

Demand for goods and services, as consumption

Primary Input
Gross added-value, difference between output and
in-between input

Inverse Leontief Matrix

Calculating technical coefficient

Calculating (I Ad) matrix

Calculating inverse matrix (Leontieff) of (I

Ad) matrix

Technical Coefficient
Purchasing Sectors
Selling Sectors
Materials
Infrastructure
Service & Transportation
Mining
Agriculture
All Others
Households
Other Value Added
Total Inputs

2
25.2
2.1
8.9
2.2
0.5
7.2
22.0
14.6
82.7

22.2
9.6
11.0
1.8
0.2
4.1
20.0
18.0
86.9

Intermediate Sectors
3
4
4.5
0.7
10.2
0.2
29.7
1.7
0.2
0.8
2.4
0.0
13.9
0.4
89.2
5.4
59.4
3.3
209.5
12.5

Technical Coefficient Matrix, Ad

Selling Sectors
Materials
Infrastructure
Service & Transportation
Mining
Agriculture
All Others
Households
Other Value Added
Total Inputs

1
0.3047
0.0254
0.1076
0.0266
0.0060
0.0871
0.2660
0.1765
1.0000

2
0.2555
0.1105
0.1266
0.0207
0.0023
0.0472
0.2301
0.2071
1.0000

3
0.0215
0.0487
0.1418
0.0010
0.0115
0.0663
0.4258
0.2835
1.0000

Final Demand
PCE
Other
20.0
3.6
6.9
54.8
100.0
37.6
0.5
0.2
8.0
0.0
50.0
33.0
0.0
0.0
0.0
0.0
185.4
129.2

6
0.1
0.6
5.8
0.1
18.1
6.1
18.0
6.9
55.7

6.4
2.5
14.8
6.7
26.5
46.3
30.8
27.0
161.0

aij
4
0.0560
0.0160
0.1360
0.0640
0.0000
0.0320
0.4320
0.2640
1.0000

Gross
Output
59.1
25.2
71.9
11.8
47.7
78.0
185.4
129.2
608.3

Final
Demand
23.6
61.7
137.6
0.7
8.0
83.0
0.0
0.0
314.6

xij
Xj

5
0.0018
0.0108
0.1041
0.0018
0.3250
0.1095
0.3232
0.1239
1.0000

6
0.0398
0.0155
0.0919
0.0416
0.1646
0.2876
0.1913
0.1677
1.0000

PCE
0.1079
0.0372
0.5394
0.0027
0.0431
0.2697
0.0000
0.0000
1.0000

Other
0.0279
0.4241
0.2910
0.0015
0.0000
0.2554
0.0000
0.0000
1.0000

Multiplier Matrix
Selling Sectors
Materials
Infrastructure
Service & Transportation
Mining
Agriculture
All Others
Households
Other Value Added
Total Inputs

1
0.3047
0.0254
0.1076
0.0266
0.0060
0.0871
0.2660
0.1765
1.0000

2
0.2555
0.1105
0.1266
0.0207
0.0023
0.0472
0.2301
0.2071
1.0000

3
0.0215
0.0487
0.1418
0.0010
0.0115
0.0663
0.4258
0.2835
1.0000

4
0.0560
0.0160
0.1360
0.0640
0.0000
0.0320
0.4320
0.2640
1.0000

5
0.0018
0.0108
0.1041
0.0018
0.3250
0.1095
0.3232
0.1239
1.0000

6
0.0398
0.0155
0.0919
0.0416
0.1646
0.2876
0.1913
0.1677
1.0000

PCE
0.1079
0.0372
0.5394
0.0027
0.0431
0.2697
0.0000
0.0000
1.0000

Other
0.0279
0.4241
0.2910
0.0015
0.0000
0.2554
0.0000
0.0000
1.0000

(I Ad) Matrix
0.6953
(0.0254)
(0.1076)
(0.0266)
(0.0060)
(0.0871)

(0.2555)
0.8895
(0.1266)
(0.0207)
(0.0023)
(0.0472)

(0.0215)
(0.0487)
0.8582
(0.0010)
(0.0115)
(0.0663)
1.4851
0.0610
0.2361
0.0538
0.0714
0.2209

(0.0560)
(0.0160)
(0.1360)
0.9360
0.0000
(0.0320)
0.4457
1.1554
0.2576
0.0459
0.0526
0.1651

(0.0018)
(0.0108)
(0.1041)
(0.0018)
0.6750
(0.1095)
0.0723
0.0714
1.2075
0.0110
0.0543
0.1348

(0.0398)
(0.0155)
(0.0919)
(0.0416)
(0.1646)
0.7124

B Matrix = (I Ad)-1

0.1110
0.0354
0.2022
1.0764
0.0258
0.0871

0.0416
0.0376
0.2304
0.0172
1.5512
0.2683

0.1180
0.0485
0.2396
0.0723
0.3720
1.5041

Multipliers
Multipliers
measure total
change throughout
the economy from one
unit change for a

Type I

Includes direct and indirect

spending of businesses
The multiplier is direct plus
indirect effect divided by
direct effect

Type II

Includes type I multiplier

effects
Plus household spending
based on the income earned
from the direct and indirect
effects the induced effects

Type III

Modified type II multipliers

adjust Type II multipliers
based on spending
patterns amongst different
income groups

given sector.

Output Multiplier

Xft = (I A)-1 (F M)

Xfd = (I Ad)-1 Fd

Output is
influenced by
final demand. It
shows changes
in activities of
certain sector
will affect
output from
other sectors

Gross Added-Value Multiplier

Primary input, fringe benefit upon
utilization of production factors

V V X
GAVi
V
Outputi
^

Employment Multiplier
Change in employment which was caused by
initial change of output

Coefficient of employment
Number of employees needed to produce one unit
of output I i Li
Xi

Impact of final demand towards labour

demand
^

L L I Ad

Fd

Linkage Analysis
Linkage Analysis

Finding leading sectors that

have bigger roles in economic
growth

Backward
linkage or power

of dispersion is ability
of a sector to
increase growth of
upstream industries.
n

BL j

n bij
n

j 1
n

b
i 1 j 1

ij

Forward linkage
or degree of
sensitivity is ability of
a sector to increase
growth of other
sectors which is using
input from this
particular sector.
n
n bij
FL j n i 1n
bij
i 1 j 0

Mineral
Economics