Input-output models are based on statistical information about the flow of goods and services among various industries.
This information provides a comprehensive and detailed representation of the economy for a given year.
An input-output model consists of three components:
These data, together with supplementary information (for example, tax rates by commodity) are combined into a single model of the economy which can be used to determine how much additional production is generated either by a change in the demand for one or more commodities (goods or services), or by a change in the output of an industry.
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