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ralph lauren polo

Ferran Sancho
''Straightening out the concept of direct and indirect input requirements''
( 2012, Vol. 32 No.1 )
Gim & Kim (1998) proposed a generalization of Jeong (1982, 1984) reinterpretation of the Hawkins-Simon condition for macroeconomic stability to off-diagonal matrix elements. This generalization is conceptually relevant for it offers a complementary view of interindustry linkages beyond final or net output influence. The extension is completely similar to the ‘total flow' idea introduced by Szyrmer (1992) or the ‘output-to-output' multiplier of Miller & Blair (2009). However the practical implementation of Gim & Kim is actually faulty since it confuses the appropriate order of output normalization. We provide a new and elementary solution for the correct formalization using standard interindustry concepts. The advantage of our approach is that it unravels and clarifies the step by step actual mechanisms behind the accounting rules.
Keywords: output multipliers, input multipliers
O5 - Economywide Country Studies: General
Manuscript Received : Oct 21 2011 Manuscript Accepted : Feb 06 2012

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