16.6. The Output Model in Input-Output Analysis

Public examination of a doctoral dissertation in the field of economics
Doctoral candidate: Lic.Soc.Sc. Eero Vatanen
Time and venue 16.6.2011 at 13 noon, C2, Carelia, Joensuu Campus

Eero Vatanen
The Output Model in Input-Output Analysis
– the Method, Theoretical Underpinnings and Empirical Applications at a Local and Regional level


This study is comprised of the introduction to the output model in input-output analysis and five papers where input-output analysis is applied to estimating the effects of industries on local and regional economies. The focus of these papers is on income and employment effects of forest-related industries´ outputs.

With one exception, the applications utilize the output model instead of the traditional demand-driven input-output model. Through this model and input-output tables, the direct, total, and net effects on the output in each industry can be estimated. The total effects of an industry´s output show how much the economy would lose income, value added, or employment if the industry entirely disappeared. The net effects of an industry´s output are estimated by subtracting the effects of other industries´ outputs from the total effects of this industry. The net effects of an industry may be higher or lower than its direct output, value added, or employment.

The main empirical aim of the five papers is to assess the effects of industries on a local or regional economy. The input-output tables are derived by utilizing the so-called hybrid method. The base of the local input-output tables is derived by the cross industry location quotient, and the local data on the main industries is used to improve their accuracy. The tables are combinations of the input-output tables and the social accounting matrices due to the fact that households and the public sector are endogenous in the output model analysis.

The main methodical conclusion of the study is that the output model is a suitable tool for economic impact analysis at a regional and local level.

The doctoral dissertation of Lic.Soc.Sc. Eero Vatanen, entitled “The Output Model in Input-Output Analysis
– the Method, Theoretical Underpinnings and Empirical Applications at a Local and Regional level”, will be examined at the Faculty of Social Sciences and Business Studies. The opponent in the public examination will be Professor Hannu Tervo of the University of Jyväskylä, and the custos will be Professor Mika Linden of the University of Eastern Finland.

Photo available for download at http://www.uef.fi/vaitoskuvat

Publishing year: 2011

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