Mineral

Economics

Input – Output Analysis

Rini Novrianti Sutardjo Tui

 Input – Output Table (Transaction Table)

In-between Demand Supply

Input Output Final
Structure Allocation Demand Quantity of
Production Sectors Import
Output
In-between Input Quadrant I Quadrant II

Sector 1 x11 x12 x13 F1 M1 X1

Sector 2 x21 x22 x23 F2 M2 X2

Sector 3 x31 x32 x33 F3 M3 X3

Quadrant III
Primary Input
V1 V2 V3
Total Input X1 X2 X3
Codes of Sectors
 Operational Data
Output
Value of goods and services produced by domestic
sectors

In-between Transaction
Transaction between consuming sectors and
producing sectors

Final Demand and Import

Demand for goods and services, as consumption

Primary Input
Gross added-value, difference between output and
in-between input
Inverse Leontief Matrix

Calculating technical coefficient

Calculating (I – Ad) matrix

Calculating inverse matrix (Leontieff) of (I

– Ad) matrix
 Technical Coefficient
Purchasing Sectors Intermediate Sectors Final Demand Gross Final
Selling Sectors 1 2 3 4 5 6 PCE Other Output Demand
Materials 25.2 22.2 4.5 0.7 0.1 6.4 20.0 3.6 59.1 23.6
Infrastructure 2.1 9.6 10.2 0.2 0.6 2.5 6.9 54.8 25.2 61.7
Service & Transportation 8.9 11.0 29.7 1.7 5.8 14.8 100.0 37.6 71.9 137.6
Mining 2.2 1.8 0.2 0.8 0.1 6.7 0.5 0.2 11.8 0.7
Agriculture 0.5 0.2 2.4 0.0 18.1 26.5 8.0 0.0 47.7 8.0
All Others 7.2 4.1 13.9 0.4 6.1 46.3 50.0 33.0 78.0 83.0
Households 22.0 20.0 89.2 5.4 18.0 30.8 0.0 0.0 185.4 0.0
Other Value Added 14.6 18.0 59.4 3.3 6.9 27.0 0.0 0.0 129.2 0.0
Total Inputs 82.7 86.9 209.5 12.5 55.7 161.0 185.4 129.2 608.3 314.6

xij
aij 
Technical Coefficient Matrix, Ad Xj
Selling Sectors 1 2 3 4 5 6 PCE Other
Materials 0.3047 0.2555 0.0215 0.0560 0.0018 0.0398 0.1079 0.0279
Infrastructure 0.0254 0.1105 0.0487 0.0160 0.0108 0.0155 0.0372 0.4241
Service & Transportation 0.1076 0.1266 0.1418 0.1360 0.1041 0.0919 0.5394 0.2910
Mining 0.0266 0.0207 0.0010 0.0640 0.0018 0.0416 0.0027 0.0015
Agriculture 0.0060 0.0023 0.0115 0.0000 0.3250 0.1646 0.0431 0.0000
All Others 0.0871 0.0472 0.0663 0.0320 0.1095 0.2876 0.2697 0.2554
Households 0.2660 0.2301 0.4258 0.4320 0.3232 0.1913 0.0000 0.0000
Other Value Added 0.1765 0.2071 0.2835 0.2640 0.1239 0.1677 0.0000 0.0000
Total Inputs 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000
 Multiplier Matrix
Selling Sectors 1 2 3 4 5 6 PCE Other
Materials 0.3047 0.2555 0.0215 0.0560 0.0018 0.0398 0.1079 0.0279
Infrastructure 0.0254 0.1105 0.0487 0.0160 0.0108 0.0155 0.0372 0.4241
Service & Transportation 0.1076 0.1266 0.1418 0.1360 0.1041 0.0919 0.5394 0.2910
Mining 0.0266 0.0207 0.0010 0.0640 0.0018 0.0416 0.0027 0.0015
Agriculture 0.0060 0.0023 0.0115 0.0000 0.3250 0.1646 0.0431 0.0000
All Others 0.0871 0.0472 0.0663 0.0320 0.1095 0.2876 0.2697 0.2554
Households 0.2660 0.2301 0.4258 0.4320 0.3232 0.1913 0.0000 0.0000
Other Value Added 0.1765 0.2071 0.2835 0.2640 0.1239 0.1677 0.0000 0.0000
Total Inputs 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000
(I – Ad) Matrix
0.6953 (0.2555) (0.0215) (0.0560) (0.0018) (0.0398)
(0.0254) 0.8895 (0.0487) (0.0160) (0.0108) (0.0155)
(0.1076) (0.1266) 0.8582 (0.1360) (0.1041) (0.0919)
(0.0266) (0.0207) (0.0010) 0.9360 (0.0018) (0.0416)
(0.0060) (0.0023) (0.0115) 0.0000 0.6750 (0.1646)
(0.0871) (0.0472) (0.0663) (0.0320) (0.1095) 0.7124
B Matrix = (I – Ad)-1
1.4851 0.4457 0.0723 0.1110 0.0416 0.1180
0.0610 1.1554 0.0714 0.0354 0.0376 0.0485
0.2361 0.2576 1.2075 0.2022 0.2304 0.2396
0.0538 0.0459 0.0110 1.0764 0.0172 0.0723
0.0714 0.0526 0.0543 0.0258 1.5512 0.3720
0.2209 0.1651 0.1348 0.0871 0.2683 1.5041
 Multipliers
Multipliers •Includes direct and indirect
measure total spending of businesses
Type I •The multiplier is direct plus
change throughout indirect effect divided by
the economy from one direct effect

unit change for a

given sector. •Includes type I multiplier
effects
•Plus household spending
Type II based on the income earned
from the direct and indirect
effects – the induced effects

•Modified type II multipliers

•adjust Type II multipliers
Type III based on spending
patterns amongst different
income groups
 Output Multiplier

Xft = (I – A)-1 (F – M) Xfd = (I – Ad)-1 Fd

Output is
influenced by
final demand. It
shows changes
in activities of
certain sector
will affect
output from
other sectors
 Gross Added-Value Multiplier

Primary input, fringe benefit upon

utilization of production factors

^
V V X

^ GAVi
V
Outputi
 Employment Multiplier

Change in employment which was caused by

initial change of output

Coefficient of employment
Number of employees needed to produce one unit
of output I i  Li
Xi

Impact of final demand towards labour

demand
 
^ 1
L  L I  Ad Fd
 Linkage Analysis

Linkage Analysis
Finding leading sectors that
have bigger roles in economic
growth

Backward Forward linkage

linkage or power or degree of
of dispersion is ability sensitivity is ability of
of a sector to a sector to increase
increase growth of growth of other
upstream industries. sectors which is using
input from this
n
n bij particular sector.
n

BL j 
j 1 n bij
FL j  n i 1n
n n

 b
 bij
ij
i 1 j 1
i 1 j  0
 Mineral
Economics