An input-output econometric model

Input-output models are used to forecast various effects that can occur to an industry as it interacts with other industries under changing conditions in the general economy. The conceptual framework for such models was established many years ago by such economic theoreticians as Quesnay (1758) and Leon Walras (1877) and, more recently, Leontief. As is readily apparent, these interindustry interactions are not only complex but numerous. Therefore, the practical use of these concepts has largely awaited the advent of the computer. In this paper, an input-output model developed for IBM is described to show what parameters are used in such models and what type of results are expected.