TEMPORAL LEONTIEF INVERSE

Citation
M. Sonis et Gjd. Hewings, TEMPORAL LEONTIEF INVERSE, MACROECONOMIC DYNAMICS, 2(1), 1998, pp. 89-114
Citations number
19
Categorie Soggetti
Economics
Journal title
ISSN journal
13651005
Volume
2
Issue
1
Year of publication
1998
Pages
89 - 114
Database
ISI
SICI code
1365-1005(1998)2:1<89:>2.0.ZU;2-U
Abstract
Interest in structural change over time has created a demand for analy tical tools that can assist in exploiting trends and uncover tendencie s in individual sectors or parts of sectors within the context of an e conomywide system of accounts. This paper offers an alternative approa ch and is designed to be used with annual input-output or social accou nting systems. To date, analysts have been faced with the prospect of conducting simple comparative static approaches or the enormity of the task involved in constructing dynamic models with complex lead and la g structures. The temporal Leontief inverse, introduced in this paper, offers a less complex, more tractable method for examining structural change when a time series of input-output tables is available. The me thod draws upon some earlier work that proposed the notion of a field of influence of change and explored alternative methods of decompositi on of change.