The Evolution of Input–Output Analysis

Abstract

The static input–output model has been used by academics and policy analysts for decades to investigate real world problems and provide advice to policy makers. From its initial development, the input–output model has continuously evolved to incorporate more complex situations in a systematic manner. This includes integrating other biological, physical and social models into the input–output framework, developing dynamic models, and incorporating uncertainty to better analyze these complex real world problems. This paper outlines the history of input–output analysis and some of the specific country experiences. It explores the conceptual extensions of the basic input–output model that have significantly broadened its scope and discusses the numerous areas of application of input–output models and the insights of these applications. Finally, the paper makes suggestions on the future use of input–output analysis.