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EXPLORING THE STABILITY OF INPUT-OUTPUT COEFFICIENTS: A RESTATEMENT OF KEY ISSUES

Abstract

This paper aims to explore the stability of input-output (I-O) coefficients, a critical aspect of economic modeling that reflects the interdependencies between industries in an economy. Despite the widespread use of I-O models in economic analysis, the stability of these coefficients over time remains a contentious issue, raising concerns about the reliability of economic forecasts derived from them. This study restates key issues surrounding I-O coefficient stability, including factors influencing their variability, the impact of structural changes in the economy, and methodological approaches for assessing stability. By synthesizing existing literature and empirical findings, we highlight the importance of understanding the conditions under which I-O coefficients may fluctuate and their implications for economic policy and planning. The paper concludes with recommendations for future research aimed at improving the robustness and accuracy of I-O models, ultimately contributing to more effective economic decision-making.

Keywords

Input-Output Coefficients, Economic Modeling, Stability Analysis

References

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EXPLORING THE STABILITY OF INPUT-OUTPUT COEFFICIENTS: A RESTATEMENT OF KEY ISSUES. (2024). International Interdisciplinary Business Economics Advancement Journal, 5(11), 1-5. https://www.iibajournal.org/index.php/iibeaj/article/view/49