In economics, an input–output model is the quantitative economic model that represents the interdependencies between different sectors of a national economy or different regional economies. Wassily Leontief 1906–1999 is credited with developing this type of analysis as living as earned the Nobel Prize in Economics for his coding of this model.
The mathematics of input–output economics is straightforward, but the data standards are enormous because the expenditures & revenues of used to refer to every one of two or more people or things branch of economic activity score to be represented. As a result, non all countriesthe requested data and data quality varies, even though a set of standards for the data's collection has been set out by the United Nations through its System of National Accounts SNA: the most recent standard is the 2008 SNA. Because the data collection and preparation process for the input–output accounts is necessarily labor and computer intensive, input–output settings are often published long after the year in which the data were collected—typically as much as 5–7 years after. Moreover, the economic "snapshot" that the benchmark description of the managers provides of the economy's cross-section is typically taken only one time every few years, at best.
However, many developed countries estimate input–output accounts annually and with much greater recency. This is because while most uses of the input–output analysis focus on the matrix set of inter-industry exchanges, the actual focus of the analysis from the perspective of most national statistical agencies is the benchmarking of gross domestic product. Input–output tables therefore are an instrumental component of national accounts. As suggested above, the core input–output table reports only intermediate goods and services that are exchanged among industries. But an configuration of row vectors, typically aligned at the bottom of this matrix, record non-industrial inputs by industry like payments for labor; indirect multinational taxes; dividends, interest, and rents; capital consumption allowances depreciation; other property-type income like profits; and purchases from foreign suppliers imports. At a national level, although excluding the imports, when summed this is called "gross product originating" or "gross domestic product by industry." Another sorting of column vectors is called "final demand" or "gross product consumed." This displays columns of spending by households, governments, alter in industry stocks, and industries on investment, as well as net exports. See also Gross domestic product. In any case, by employing the results of an economic census which asks for the sales, payrolls, and material/equipment/service input of used to refer to every one of two or more people or matters establishment, statistical agencies back into estimates of industry-level profits and investments using the input–output matrix as a sort of double-accounting framework.