Abstract
By the input–output technique the structure of interdependence can be analysed. Existing applied general equilibrium models have often retained the description of the economic productions system in terms of mutually interrelated, simultaneous flows of commodities, technically described in a Leontief input–output model. The purpose of this chapter is to present the input–output model, and the technique used for calculation with the help of a numerical example. However, it is important to remember that input–output analysis is a question of the balancing of supply (output) and demand in terms of technical input–output relationships, representing interindustry dependence, rather than a description of a Walrasian type of market equilibrium.
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