Input–Output Analysis

Input–output analysis describes the interdependence between industries in an economy. General equilibrium theory provides the theoretical foundation for input–output analysis, while the input–output table is a prerequisite for empirical input–output work. Advances in science and technology, especially the development of high‐speed computers, have made input–output analysis more comprehensive and practical. Among the most important developments in input–output analysis are the implementation of computable general equilibrium (CGE) models and the ability to continually update and expand the tables. Input–output analysis is very helpful for investigating the growth and involvement of producer services in an economy.