Input-Output Analysis: New Technologies and Extended Time Horizons

Input-output analysts are often confronted with requests for impacts assessments for economic shocks that stretch uncomfortably the assumptions of standard input-output modeling. This paper presents an approach to confronting a subset of these challenges straightforwardly in a way that ameliorates some of the more restrictive input-output assumptions, maintains the inter-industry detail of the input-output model, and enhances the representation of certain economic behaviors without the additional complexities of moving to more complex computable general equilibrium or conjoined econometric input-output models. We conclude with the observation that direct changes to the input-output framework most often necessitate further modifications requiring additional behavioral assumptions and decisions on the part of the modeler.