Extraction of indirect effect among sectors in industrial network based on input-output data

Abstract

Input-Output table is important for analyzing the relationship among industrial sectors when we decide a policy making. In this paper we propose to consider the indirect effect between sectors in sales and sectors in purchases from Input-Output table. We adopt a economical interaction model permitting consideration of several path selection for each origin-destination pair. The economical interaction model is considered as a general model because it has been developed by entropy maximization principle. From observed data about total output in sales and purchases, our model can estimate interdependencies between different industrial sectors. The parameter estimation procedure for the proposed model is developed.