Queensland State Impact and Projection Model: The Household Sector

Abstract

The Queensland Impact and Projection model is an integrated input–output econometric model of the Queensland economy. Its purpose is to complement a conventional input–output model for analyzing economic impacts at the state level. This paper provides an overview of some of the methods used to model the household sector in an input–output framework, before describing the approach taken in the Queensland model. Some results which support the empirical performance of the model are also provided. It is demonstrated that the integrated model is a viable alternative and improvement on the conventional input–output model. The results are consistent with the static input–output model and conform to expectations about how the economy responds in real impact situations.