Abstract: The main purpose of this paper is to develop a new kind of input-output multiplier particularly well suited to quantify the impacts of final demand changes (in consumption, investment or exports) on the sectoral output growth potential of an economy. Instead of using the traditional output multipliers, given by the elements of the Leontief inverse, solving an appropriate optimization problem provides what can be called input-output Euclidean distance multipliers. This method does not impose unitary final demand shocks with a fixed (predetermined) structure, allowing the "IO economy" to change along the spectrum of all possible structures. It can be very helpful in measuring interindustry linkages, choosing (a certain kind of) key sectors in a national or regional economy and managing the environment. . JEL classification: C67; D5
