MODIFYING A ONE REGION LEONTIEF INPUT-OUTPUT MODEL TO SHOW SECTOR CAPACITY CONSTRAINTS

A one-region Leontief input-output model may be modified to show sector capacity constraints or 'sector destruction.' The economist must know the degree of sector destruction, level of imports of the destroyed sector's product, and make certain assumptions about the regional economy. Six cases are presented based on the degree of destruction (complete or partial) and level of imports of the destroyed sector's product (none, sufficient to reach original final demands or insufficient to reach original final demands). A linear programming version of the input-output model is suggested for three of the six cases.