APL (Ajiken Power Lunch)

APL (Ajiken Power Lunch) is a lunchtime workshop open to public, including IDE staffs, visiting research fellows, IDEAS students, outside researchers and graduate students. This workshop provides a platform for presentation of any work in progress where we can discuss in either English or Japanese.

Those who would attend a seminar are asked to announce yourself to receptionists on your arrival at the IDE and to obtain APL Organizers' signature on your admission card after the seminar.

July 21, 2017. (Friday) 14：00-15：30

Institute of Developing Economies, Japan External Trade Organization C23 Meeting Room 　

A New Method of Inter-Regional Input-Output Analysis under Modern Economic Frameworks: Isard Revisited

This study suggests a method of input-output analysis originated from NEG models, or spatial general equilibrium models with Dixit-Stiglitz type monopolistic competition, considering generalized input-output structure among multiple industries. When we use a linearly approximated model based on a comparative statics analysis around an interior equilibrium of the original model, an inter-regional input-output table and several information of elasticity of substitution of each industry are sufficient for forecasting the effects of changes in exogenous variables such as population, transportation cost and production technology. Specifically, when we consider effects in the short-run in which firms can neither exit nor entry, our method is equivalent to the Isard (1951)’s inter-regional input-output model. However, under the setting that firms can exit and entry freely, our analysis yields a different result.

Ryo Ito
(Associate Professor, Graduate School of Information Sciences, Tohoku University (Japan))

Kenmei Tsubota

English