Usefulness
Because the input-output model is fundamentally linear in nature, it lends itself well to rapid computation as well as flexibility in computing the effects of changes in demand.
The structure of the input-output model has been incorporated into national accounting in many developed countries, and as such forms an important part of measures such as GDP. An understanding of the economy as consisting of linked sectors goes back to the French economist François Quesnay, but was developed in full generality by Léon Walras in 1874. Leontief's contribution was to state the model in such In addition to studying the structure of national economies, input-output economics has been used to study regional economies within a nation, and as a tool for national and regional economic planning. Indeed a main use of input-output analysis is for measuring the economic impacts of events as well as public investments or programs as shown by IMPLAN and RIMS-II. But it is also used to identify economically related industry clusters and also so-called "key" or "target" industries--industries that are most likely to enhance the internal coherence of a specified economy. By linking industrial output to satellite accounts articulating energy use, effluent production, space needs, and so on, input-output analysts have extended the approaches application to a wide variety of uses.
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