Document Type

Working Paper

Publication Date

2002

College/Unit

Regional Research Institute

Document Number

RESEARCH PAPER 2002-11

Department/Program/Center

Regional Research Institute

Abstract

Regional economic models have been challenged to incorporate with structural changes in the economy. Especially, when a structural change is sudden, unpredictable, yet extensive, such as damages from a natural disaster, conventional models can hardly confront such significant changes due to their assumption of incremental changes. Sequential Interindustry Model (SIM) is an extension of the input-output framework that enables to trace the production process and the path of the impacts. SIM is particularly useful to simulate the dynamic process of impact propagation and of structural changes after a catastrophic disaster. In this paper, the issues and extensions of SIM are discussed with numerical examples.

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