Miller & Blair (2009) (Second Edition) gives a precise and clear update on the developments and changes that have taken place in I-O analysis since its inception in the 1930's work by W. Leontief. His aim was to formulate a general equilibrium theory that would be capable of empirical implementation. Leontief's problem; and that of the entire economist community, was that the Walrasian general equilibrium model, nice and orderly as it was, did not easily lend itself to quantitative estimation. An interesting aspect here is that Leontief's doctoral thesis at the University of Berlin was titled "Wirtschaft als Kreislauf" (direct translation: the economy as a circular run). Today, in many languages, the translation of "Kreislauf Analyse" (circular or cross run/section analysis. Ref. Ragnar Frisch's "Kryssløps Analyse) is the name used for I-O analysis.
The authors go into the various aspects of the use, data collection and construction of the I-O matrix and its extensions. Since the advent of relatively sophisticated computer programs, the inversion of the coefficient matrix, i.e., the "Leontief Inverse", is mercifully treated as straight forward matrix algebra.
In addition to the traditional industry based technology (industry-by-industry data allocation), the more contemporary commodity based technology is discussed in great detail (commodity-by-commodity data allocation). The commodity-by-industry approach in the I-O model used by the US BEA is of course analyzed. In this connection is noteworthy that the regionalization of the macro model is also discussed.
For the application centered readers the various multipliers are outlined. Furthermore, more special uses of the I-O model, such as Energy and Environmental applications are discussed.
This opus can be beneficially read by both newcomers and more seasoned practitioners.
- Paperback: 784 pages
- Publisher: Cambridge University Press; 2 edition (30 July 2009)
- Language: English
- ISBN-10: 0521739020
- ISBN-13: 978-0521739023
- Product Dimensions: 17 x 4 x 24.4 cm
- Boxed-product Weight: 1.5 Kg
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- Amazon Bestsellers Rank: 315,506 in Books (See Top 100 in Books)