 Negative IO Supply Shock Analyses: When Substitution MattersChapter Chapter 8 in Rethinking Input-Output Analysis, 2022, pp 105-121 from Springer Abstract: Abstract The inoperability IO model is one of the most used approaches to estimate the indirect impacts of negative supply shocks. It is a regular IO model formulated in relative changes that inadequately estimates only part of only the negative demand-side impacts of disasters, while it completely ignores the positive substitution effects on the supply side. Other IO approaches are also shown to be unsuited to this task. An information minimizing interindustry programming model is presented as an alternative. Its basic assumption is that economic actors, after a disaster, primarily try to restore their old pattern of economic transactions. By adding the usual fixed ratio assumptions of SU models, an indication is given of the heavy overestimation of the negative impacts of a supply shock when demand-driven IO models are used. Finally, to model the reconstruction phase of major disasters the dynamic IO model is added to this approach. Keywords: Disaster impact analysis; Inoperability input–output model; CGE models; Nonlinear programming model; Danube and Elbe floods; Capital/output ratios; Dynamic input–output model (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:adspcp:978-3-031-05087-9_8 Ordering information: This item can be ordered from DOI: 10.1007/978-3-031-05087-9_8 Access Statistics for this chapter More chapters in Advances in Spatial Science from Springer |
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