TOTAL FLOW IN INPUT-OUTPUT MODELS

Abstract

From the algebraic perspective, the basic concept of the classical Leontief I-O (Input-Output) analysis lies in the distinction between two principal kinds of coefficient matrices: technical and structural. It is not universally recognized that neither of these expresses exactly the total flow (total relationships) between elements of an I-O system. Without knowledge of total flow it has been impossible to answer correctly many important theory and policy questions. In this dissertation, an initial step is taken to bridge the gap by providing a third choice. This is another coefficient (and flow) matrix that quantifies the total flow and thereby depicts adequately the full complexity of I-O relations. It is shown that total flow analysis is a useful tool in dealing with various I-O kinds of problems in economics, ecology, and other disciplines. The dissertation is composed of two parts. Part One: Defining Total Flow in an Ecosystem Input-Output Model. The concept of total flow is introduced. Total flow analysis is treated as a subdomain of ecological flow analysis. Its basic notions are presented and illustrated with empirical data for a particular small aquatic ecosystem--that of Cone Spring. The applicability of the total flow concept to specific ecology problems (such as trophic relationships, cycling of nutrients, and others) is indicated. Part Two: Measuring Connectedness of Input-Output Models. The concept of scalar measures of the degree of internal connectedness in I-O models is considered. A number of measures, drawn from the economic and the ecological I-O literatures, are examined. It is shown that none of the measures represent connectedness adequately. The concept of the total flow is reviewed and applied as a basis for calculation of several indexes, such as the average total flow coefficient and the average internal multiplier, both of which are sensitive to (1) number, (2) diversity and (3) volume of I-O linkages and express appropriately the overall connectedness