A metropolitan input-output model: Multisectoral and multispatial relations of production, income formation, and consumption

Abstract

This study formulates a metropolitan input-output model (hereafter MIO) that incorporates the multispatial and multisectoral nature of an urban economic system. Two main features can be highlighted which distinguish the MIO model from other input-output models as applied to the urban context. The MIO model integrates information on intrametropolitan flows of people, commodities and services through the embedding approach within an input-output framework. Accordingly, the model has been built in one methodological framework (input-output framework) and operated by using one calculation system (inversion of input coefficient matrix), taking interspatial and intersectoral linkages into consideration. Another unique characteristic of the proposed model is that the input coefficient matrix of the MIO model consists of three partitioned matrices that have different spatial dimensions: interindustrial technical coefficients by place of production; the income coefficients by place of residence, and consumption coefficients by place of consumption. The MIO model can be applied for the impact analysis of a variety of urban policy evaluations. The main sets of results are derived as outputs from the MIO model: gross output and employment by zone, by sector, by income group, and by repercussion type.