INPUT-OUTPUT ANALYSIS
| Collection | International Encyclopedia of Systems and Cybernetics |
|---|---|
| Year | 2004 |
| Vol. (num.) | 2(1) |
| ID | ◀ 1710 ▶ |
| Object type | Discipline oriented, Methodology or model |
A technique for the study of flows in the economy in general or in an enterprise.
This technique can be used for planning or forecasting. It aims at the clear definition of the interconnections between some defined inputs and the corresponding outputs. This is generally done by using input-output matrixes (see hereafter). In this way, it becomes possible to establish the amount of output than can be obtained from a specified input, or conversely the amount of input needed to obtain a specified output, and eventually the changes that should be introduced in their reciprocal balance.
The technique can be applied in very numerous different cases relating inputs and outputs of materials, energy, information, labour, financial resources, or production of some item in relation to the market, etc…
There must be of course basic assumptions related to the constancy of environmental conditions and, for planning and forecasting, a time horizon of credibility about the stability of the same.
Input-output analysis can also be used in the study of ecosystems.