Table Of ContentMicrocomputer-Based
Input-Output Modeling
Microcomputer-Based
Input-Output Modeling
Applications to
Economic Development
EDITED BY
Daniel M. Otto
and Thomas G. Johnson
First published 1993 by Westview Press
Published 2018 by Routledge
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Copyright © 1993 by Westview Press, Inc., except for Chapter 9, which is a work of the U.S.
government
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Library of Congress Cataloging-in-Publication Data
Microcomputer-based input-output modeling: applications to
economic development / edited by Daniel M. Otto and Thomas G. Johnson.
p. cm.
ISBN 0-8133-1046-6
1. Input-output analysis—Data processing. 2. Economic
development—Mathematical models—Data processing.
3. Microcomputers. I. Otto, Daniel. II. Johnson, Thomas G.
HB 142.M535 1993
339 .2'3'0285416—dc20 89-78298
CIP
ISBN 13: 978-0-367-00393-7 (hbk)
Contents
Preface
About the Contributors
1 An Introduction to Regional Input-Output Analysis,
Steven E. Hastings and Sharon M. Brucker
2 Cautions in Using 1-0 Models, Mark S. Henry and
Thomas G. Johnson
3 The Problem: Using Value-Added Information in
Benefit/Cost Analysis, Stephen C. Cooke
4 A Survey Approach to Developing an Input/Output
Model, Michael W. Babcock
5 Nonsurvey Approach to I/O Modeling,
Curtis H. Broschier and Gary T. Devino
6 Developing or Selecting a Regional Input-Output Model,
Sharon M. Brucker and Steven E. Hastings
7 Regional Economic Impact of the Conservation Reserve
Program: An Application of Input-Output Analysis,
F. Larry Leistritz, Timothy L. Mortensen, Randal C.
Coon, Jay A. Leitch, and Brenda L· Ekstrom
8 Using Input-Output Analysis for Estimation of
Distributional Impacts from Plant Openings and Closings,
Thomas R. Harris
9 Impacts of Transfer Payments, G. Andrew Bernat, Jr.
Contents
10 Structural Analysis Using Input/Output Analysis: The
Agriculture Sector and National and Regional Levels,
Gerald Schluter 118
11 The Role of Interindustry Linkages in an Industrial
Targeting Model, Frank M. Goode 131
12 Using Input-Output for Regional Planning,
Gerald. A. Doeksen and Mike D. Woods 157
13 Policy Simulation Modeling, George 1. Treyz 172
14 SAM Multipliers: Their Interpretation and
Relationship to Input-Output Multipliers,
David Holland and Peter Wyeth 181
15 Computable General Equilibrium Analysis at the
Regional Level, David S. Kraybill 198
16 The Dynamics of Input-Output Introduction,
Thomas G. Johnson 216
Preface
This book brings together papers by researchers and analysts from
academic, governmental, and other agencies that discuss recent developments in
I/O models for microcomputers, applications of I/O models in regional studies,
and to explore future directions for the methodology. Interest in these topics has
grown in recent years as the availability of expanded PC capability and the
adaptation of I/O software and data by academic and for-profit organizations has
increased the set of modeling options for individuals and organizations interested
in using I/O analysis for applied research and policy analysis. As enhanced PC
capacities and software developments expand the pool of potential I/O users, the
possibilities for misapplication also increase. The proceedings from this
conference are intended to provide reference materials on I/O applications for
this evolving audience of new I/O users.
The objective of illustrating different I/O applications ranges from the
traditional to more sophisticated extensions of the basic I/O framework. These
applications include standard impact analysis and structural analysis of a regional
economy, as well as extending the I/O framework to dynamic and simulation
applications and development of Social Accounting Matrices (SAMs) and
Computable General Equilibrium (CGE) models. In addition to these
applications, the book provides a review of I/O methodology and different
methods of constructing I/O models, a discussion of appropriate and
inappropriate uses of I/O methodology, and a discussion of alternative sources
for developing or acquiring an I/O model.
This range of topics is intended to appeal to the newly initiated as well as
the more experienced I/O users interested in more advanced applications of the
I/O framework. This grouping of topics also becomes the organizational scheme
for this book.
The opening section of the book provides background information on
traditional I/O models, including chapters on I/O theory and methodology,
chapters on survey approach and secondary data approaches to developing I/O
models, cautions on the use of I/O models in applied work, and considerations
in choosing an I/O based modeling system. The material in this section is
intended to provide relatively inexperienced users with sufficient background or
reference material to begin conducting applied I/O work on a number of topics.
The second section of the book focuses on presenting a set of I/O
applications illustrating a range of potential uses for an I/O modeling system.
The set of applications illustrated in this section includes a structural evaluation
viii Preface
of the farm sector in the economy, the impact of the Conservation Reserve
Program, the distributional impacts of social security programs, and the use of
an I/O model to help regions target industrial recruitment candidates. This
section is intended to provide a set of working examples of I/O applications for
users to draw upon for reference in analyzing similar issues.
The third and final section of the book continues the emphasis on
applications as the discussion shifts to extending the original I/O model to
several more innovative and sophisticated techniques. The first two chapters in
this section discuss application of I/O techniques as a core component in
simulation modeling systems for public service planning activities and policy
analysis. The use of I/O components to develop and apply more sophisticated
analytical techniques of dynamic I/O modeling, SAMs, and CGE models are
discussed in three other chapters in this third section. The topics of SAMs and
CGE modeling have a large and evolving literature on their development and
applications. The discussion of SAMs and CGE models are intended to describe
the basic components of these modeling systems and their relationship to the
basic I/O model with a discussion of potential applications of these techniques.
Finally, thanks are in order to the North Central Regional Center for Rural
Development for its generous support in the planning and implementation stages.
Daniel M. Otto
About the Contributors
Michael W. Babcock, Professor, Department of Economics, Kansas State
University, Manhattan, Kansas.
G. Andrew Bemat, Jr., Economist, United States Department of
Agriculture, Economic Research Service, Washington, DC.
Curtis H· Braschler, Professor, Department of Agriculture Economics,
University of Missouri-Columbia, Columbia, Missouri.
Sharon M. Bracker, Research Associate, Department of Food and
Resource Economics, University of Delaware, Newark, Delaware.
Stephen C. Cooke, Assistant Professor, Department of Agriculture
Economics, University of Idaho, Moscow, Idaho.
Randal C. Coon, Research Specialist, Department of Agriculture
Economics, North Dakota State University, Fargo, North Dakota.
Gary T. Devino, Professor, Department of Agriculture Economics,
University of Missouri-Columbia, Columbia, Missouri.
Gerald A. Doeksen, Professor, Department of Agriculture Economics,
Oklahoma State University, Stillwater, Oklahoma.
Brenda L. Ekstrom, Research Associate, Department of Agriculture
Economics, North Dakota State University, Fargo, North Dakota.
Frank M. Goode, Associate Professor, Department of Agriculture
Economics, Penn State University, University Park, Pennsylvania.
Thomas R. Harris, Professor, Department of Agriculture Economics,
University of Nevada, Reno, Nevada.
Steven E· Hastings, Professor, Department of Food and Resource
Economics, University of Delaware, Newark, Delaware.
Mark S. Henry, Professor, Department of Agriculture Economics,
Clemson University, Clemson, South Carolina.
David Holland, Professor, Department of Agriculture Economics,
Washington State University, Pullman, Washington.
Thomas G. Johnson, Professor, Department of Agriculture Economics,
VPI & SU, Blacksburg, Virginia.
David S. Kray bill, Assistant Professor, Department of Agriculture
Economics, Ohio State University, Columbus, Ohio.
F. Larry Leistritz, Professor, Department of Agriculture Economics, North
Dakota State University, Fargo, North Dakota.
