Springer Nature is making SARS-CoV-2 and COVID-19 research free. View research | View latest news | Sign up for updates

A study on the building of a new “output–output model” and its usefulness: based on a comparative analysis of the input–output model

  • 128 Accesses


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.

This is a preview of subscription content, log in to check access.


  1. Ahlert G (2001) The economic effects of the Soccer World Cup 2006 in Germany with regard to different financing. Econ Syst Res 13: 109–127

  2. Bank of Korea (2003) 2000 Input–output tables

  3. Davis HC, Salkin EL (1984) Alternative approaches to the estimation of economic impacts resulting from supply constraints. Ann Reg Sci 18: 25–34

  4. de Mesnard L (2002) Note about the concept of net multipliers. J Reg Sci 42: 545–548

  5. Dietzenbacher E (2005) More on multipliers. J Reg Sci 45: 421–426

  6. Ghosh A (1958) Input–output approach to an allocation system. Economica 25: 58–64

  7. Gim HU, Kim K (1998) The general relation between two different notions of direct and indirect input requirements. J Macroecon 20: 199–208

  8. Gim HU, Kim K (2005) The decomposition by factors in direct and indirect requirements: with applications to estimating the pollution generation. Korean Econ Rev 21: 309–325

  9. Jeong KJ (1984) The relation between two different notions of direct and indirect input requirements. J Macroecon 6: 473–476

  10. Lenzen M (2001) A generalized input-output multiplier calculus for Australia. Econ Syst Res 13: 65–92

  11. Leontief W (1936) Quantitative input and output relations in the economic system of the United States. Rev Econ Stat 18: 105–125

  12. Liew CJ (2005) Dynamic variable input–output (VIO) model and price-sensitive dynamic multipliers. Ann Reg Sci 39: 607–627

  13. Miller RE, Blair PD (1985) Input–output analysis: foundations and extensions. Prentice-Hall, Englewood Cliffs

  14. Nijkamp P, Oosterhaven J, Ouwersloot H, Rietveld P (1992) Qualitative data and error measurement in input-output analysis. Econ Model 9: 408–418

  15. Olsen JA (1992) Input–output models, directed graphs and flows in networks. Econ Model 9: 365–384

  16. Oosterhaven J (2007) The net multiplier is a new key sector indicator: reply to de Mesnard’s comment. Ann Reg Sci 41: 273–283

  17. Oosterhaven J, Stelder D (2002) Net multipliers avoid exaggerating impacts: with a bi-regional illustration for the Dutch transportation sector. J Reg Sci 42: 533–543

  18. Sonis M, Hewings GJD, Guo J (2000) A new image of classical key sector analysis: minimum information decomposition of the Leontief inverse. Econ Syst Res 12: 401–423

  19. Szyrmer JM (1992) Input–output coefficients and multipliers from a total flow perspective. Environ Plann A 24: 921–937

  20. Szyrmer JM, Walker R (1983) Interregional total flow: a concept and application to a U. S. input–output model. Rev Reg Stud 13: 12–21

  21. Waugh FV (1950) Inversion of the Leontief matrix by a power series. Econometrica 18: 142–154

  22. Yoo S-H, Yang C-Y (1999) Role of water utility in the Korean national economy. Int J Water Resour Dev 15: 527–541

  23. Zhang JS (2001) Iterative method for finding the balanced growth solution of the non-linear dynamic input–output model and the dynamic CGE model. Econ Model 18: 117–132

Download references

Author information

Correspondence to Ho Un Gim.

Rights and permissions

Reprints and Permissions

About this article

Cite this article

Gim, H.U., Kim, K. A study on the building of a new “output–output model” and its usefulness: based on a comparative analysis of the input–output model. Ann Reg Sci 43, 807–829 (2009). https://doi.org/10.1007/s00168-008-0227-x

Download citation

JEL Classification

  • C67
  • R15