On the Math versus Econ of Input-Output Models

Jan Oosterhaven
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Jan Oosterhaven: University of Groningen

No 2025005-EEF, Research Report from University of Groningen, FEB Research Institute (FEBRI)

Abstract: The four basic input-output (IO) models are almost always discussed and used inisolation. However, their solutions can be paired in two equations that show that the mathematics of IO is simple, which is a danger. Two opposing pairs of models that combine the same behavioural assumptions show that the economics of IO is quite complex. Ignoring that easily leads to faulty applications.

Date: 2025
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