O'Reilly logo

Approaches to Geo-mathematical Modelling by Alan Wilson

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 7Global Dynamical Input–Output Modelling

Anthony P. Korte and Alan G. Wilson

7.1 Towards a Fully Dynamic Inter-country Input–Output Model

There is a wealth of literature on input–output (I/O) modelling – indeed, the model has iconic status. However, research challenges remain. The most common models are of a comparative static nature and are for a single country (or region or city). There is an extensive literature on making the models dynamic and, separately, on making them multi-country. The latter initiative involves modelling trade. The challenge in making the model fully dynamic involves modelling investment. Our objective in this chapter is to articulate a model that is multi-country, multi-sector and dynamic. We build on Duchin's single-country dynamic model (Duchin, 2004) and Wilson's multi-country dynamic model (Wilson, 2015), and in each case show how to generate versions of a fully multi-country, multi-sector, dynamic model. We proceed as follows. In Section 7.2, we articulate the accounts for a single country and show how to include endogenous final demand. We then extend the single-country model to be inter-country and show how to incorporate investment (Section 7.3). In Section 7.4, we further extend the argument to show how investment can be treated as capacity building on a planning basis in a global model; and in Section 7.5, we offer an alternative model in terms of investment growth. In each of these sections, we explore model dynamics with hypothetical ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required