Input-output Models for Regional Demographic-Economic Analysis: Some Structural Comparisons

Abstract

In this paper is presented a comparative survey of the many ways in which a static Leontief input–output model can be extended to include demographic–economic relationships. A family of ten input–output models is identified, with individual members defined according to their representation of household income, employment, and unemployment. Miyazawa's fundamental equation of income formation is generalised and used to establish structural relationships between the models, as reflected in income and employment impact-multipliers. Although the emphasis of the paper is theoretical, examples are given of the empirical application of existing models. Some of the models emerging from the analysis are new and offer considerable potential for impact studies in the future.