A Comparative Study on the Causal Relationships between Final Output(ō) and Final Output(ο) - Based on the Output-Output(OO) and Final Demand-Final Output(FF) Models -

Abstract

Recently, based on the latest research findings and results from the models of output-output(OO) and final demand-final output(FF) between final output(?, cause variable) and final output(ο, effect variable) in the most recent economic literature, furthermore, the OO and FF models were initially developed by the authors Gim and Kim(2009) as the other alternative models of the traditional, basic version of input-output(IO) model, the specific objectives of this paper can be shortly summed up as follows.<BR> (1) We perform a theoretical and comparative analysis between the OO and FF models in characteristics and features and illustrate the usefulness and effectiveness of the two alternative models.<BR> (2) We examine into the dependent and causal relationships between final output(?, cause variable) and final output(ο, effect variable), moreover, which have the same cause and effect relationships in the output-output and final demand(?)-final output(ο) models.<BR> (3) On the grounds of the two models studied and developed by the authors, we verify the linkage relationships and multiplier effects between the two variables of final output(?) and final output(?) to observe the relevant economic characteristics of each model.<BR> Further, this paper was mainly focused on deriving the mathematical models through the relationships between the variables ? (cause) and ο (effect) on the basis of the dependent and causal relationships in the models. Consequently, we inevitably need the real empirical study to examine the validity and usefulness of the OO and FF models analyzed in this research based on the varied raw data of Input-Output Tables compiled periodically by the Bank of Korea.