Introduction to Regional Input-Output Model

Closed (Type II) Model
H R : household input coefficients to the original n
sectors a n+1,j = Z n+1,j / X j
• Z n+1,j
: j sector’s purchases of labor
• a n+1,j
: the value of household services (labor)
used per dollar’s worth of j’s output
H C : consumption coefficients from the original n
sectors a i,n+1 = Z i,n+1 / X i
• Z i,n+1
: the value of sector i’s sales to
households
Total impact = Direct impact + Indirect impact +
Induced impact