Editing Input–output model (section)

== Criticism of Input-Output Models ==
[[The Australia Institute]] critiques input-output (IO) models for their biases and limitations in assessing the economic impacts of projects and policies. There are limitations and biases inherent in IO models, citing concerns that they are "biased" and "abused" by organizations like the Australian Bureau of Statistics and the Productivity Commission. <ref>{{Cite web |last=Denniss |first=Richard |title=Economic models often biased by vested interests |url=https://australiainstitute.org.au/wp-content/uploads/2020/12/CT-Economic-models-often-biased-by-vested-interests.pdf |access-date=23 April 2025 |website=The Australia Institute}}</ref> For instance, the institute's research points out that IO models often assume fixed prices and don't account for resource constraints, which can lead to unrealistic and inflated economic impact estimates. <ref>{{Cite web |last1=Denniss |first1=Richard |last2=Campbell |first2=Rod |date=November 2013 |title=Terminal 4 Project Submission to the preferred project report |url=https://australiainstitute.org.au/wp-content/uploads/2020/12/T4-PPR-submission-FINAL.pdf |access-date=23 April 2025 |website=The Australia Institute}}</ref>  IO models can be misinterpreted and used to justify projects or policies that are not economically sound. <ref>{{Cite web |last1=Shields |first1=Tony |last2=Campbell |first2=Rod |date=December 2017 |title=Styx coal project |url=https://australiainstitute.org.au/wp-content/uploads/2020/12/P463-Styx-coal-submission-FINAL.pdf |access-date=23 April 2025 |website=The Australia Institute}}</ref> The Australia Institute suggests that more robust and comprehensive economic analysis methods should be used to assess economic impacts, rather than relying solely on IO models. <ref>{{Cite web |last=Campbell |first=Rod |date=8 January 2014 |title=Another way to look at the impact of coal |url=https://australiainstitute.org.au/wp-content/uploads/2020/12/Another-way-to-look-at-the-impact-of-coal.pdf |access-date=23 April 2025 |website=The Australia Institute}}</ref>