HCBE Faculty Articles
Title
Economic Interdependence and Input-Output Theory
Document Type
Article
Publication Date
2011
Publication Title
Kalathos
Volume
5
Issue/Number
2
First Page
7
Last Page
11
Abstract/Excerpt
The objective of this paper is to summarize the historical evolution of the concept of economic interdependence within the general frame of reference of the input-output model. Modern macroeconomic thought has been profoundly influenced by two general equilibrium systems, the Keynesian one and the Input-Output model developed by Leontief. Although Keynes´ New School is considered an alternative to the Classical one, his approach is based on classical and neoclassical works. The first explanations of economic interdependence were examined by François Quesnay´s Tableau Économique, published in 1758. The recognition of Quesnay as pioneer of inter-industrial analysis was made by whom many years later became one of the greatest modern exponents of this type of analysis: Wassily W. Leontief. In his book The Structure of the American Economy. Leontief wrote that the statistical study presented in his Introduction to Part I could be better defined as an attempt to produce a “Tableau Économique” of the United States for 1919 and 1929. Leontief´s input-output model was originally intended to functionalize Léon Walras´ general equilibrium and interdependence model. That is why Leontief defined Input-output as an adaptation Neoclassical theory of general equilibrium to the empirical study of the quantitative interdependence among interrelated economic activities.
NSUWorks Citation
Pellet, Pedro F. and Ruiz, Angel Luis, "Economic Interdependence and Input-Output Theory" (2011). HCBE Faculty Articles. 613.
https://nsuworks.nova.edu/hcbe_facarticles/613
