Input–output model

In economics, an input–output model is a quantitative economic technique that represents the interdependencies between different branches of a national economy or different regional economies.

The model depicts inter-industry relationships within an economy, showing how output from one industrial sector may become an input to another industrial sector. In the inter-industry matrix, column entries typically represent inputs to an industrial sector, while row entries represent outputs from a given sector. This format therefore shows how dependent each sector is on every other sector, both as a customer of outputs from other sectors and as a supplier of inputs. Each column of the input–output matrix shows the monetary value of inputs to each sector and each row represents the value of each sector's outputs.