Wiley Handbook of Science and Technology for Homeland Security, 4 Volume Set

INPUT–OUTPUT MODELING FOR INTERDEPENDENT INFRASTRUCTURE SECTORS

JOOST R. SANTOS AND YACOV Y. HAIMES

Center for Risk Management of Engineering Systems, University of Virginia, Charlottesville, Virginia

1 BACKGROUND: LEONTIEF INPUT–OUTPUT MODEL

No literature survey on interdependency analysis is complete without mentioning the input–output (I–O) model, for which Wassily Leontief received the 1973 Nobel Prize in Economics. This model is useful for studying the effects of consumption shocks on interdependent sectors of the economy [1, 2]. Miller and Blair [3] provide a comprehensive introduction of the model and its applications. Leontief’s I–O model describes the equilibrium behavior of both regional and national economies [4, 5] and presents a framework capable of describing the interactive nature of economic systems. Extensions and current frontiers of I–O analysis can be found in Lahr and Dietzenbacher [6] and Dietzenbacher and Lahr [7]. It is worth noting that the traditional use of input–output analysis for estimating the effects of economic shifts (e.g. changes in consumption) has been extended to other applications, such as disaster risk management, environmental impact analysis, and energy consumption, among others. Various studies for estimating losses pursuant to disasters have employed traditional I–O analysis and extended approaches such as computable general equilibrium (CGE) models. Rose and Liao [8] conducted a case study of water-supply disruption scenarios in Portland ...