Note on the Decomposition by Factors in Direct AND Indirect Requirements

Hu Un Gim and Koonchan Kim
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Hu Un Gim: Keimyung University
Koonchan Kim: Keimyung University

Korean Economic Review, 2008, vol. 24, 259-282

Abstract: The decomposition by factors in direct and indirect requirements was introduced by Gim and Kim(2005). More specifically, the notion of direct and indirect input requirements of commodity to produce a unit of gross output of commodity j, r , can be decomposed into the direct, the technical indirect effects, and that to support a unit of final demand of commodity , can be decomposed into the direct, the technical indirect, and the interrelated indirect effects in the open static input-output model. This note provides a complementation of the decomposition, which is based on more accurate and consecutively meaningful general relation given by , where the element of the Leontief inverse ij represents the direct and indirect output requirements to support a unit of final demand.

Keywords: Decomposition by Factors; General Relation; Consecutive Connection; Direct and Indirect Requirements; Leontief Inverse; Open Static Input-Output Model (search for similar items in EconPapers)
JEL-codes: C67 R15 (search for similar items in EconPapers)
Date: 2008
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