Editing Input–output model (section)

==Usefulness==

Because the input–output model is fundamentally linear in nature, it lends itself to rapid computation as well as flexibility in computing the effects of changes in demand. Input–output models for different regions can also be linked together to investigate the effects of inter-regional trade, and additional columns can be added to the table to perform [[environmentally extended input–output analysis]] (EEIOA). For example, information on fossil fuel inputs to each sector can be used to investigate flows of [[embedded emissions|embodied carbon]] within and between different economies.

The structure of the input–output model has been incorporated into national accounting in many developed countries, and as such can be used to calculate important measures such as national GDP. Input–output economics has been used to study regional economies within a nation, and as a tool for national and regional economic planning. A main use of input–output analysis is to measure the economic impacts of events as well as public investments or programs as shown by IMPLAN and [[Regional Input–Output Modeling System]]. It is also used to identify economically related industry clusters and also so-called "key" or "target" industries (industries that are most likely to enhance the internal coherence of a specified economy). By linking industrial output to satellite accounts articulating energy use, effluent production, space needs, and so on, input–output analysts<!-- Who? --> have extended<!-- Font? --> the approaches application to a wide variety of uses.

===Input–output and socialist planning===
The input–output model is one of the major conceptual models for a [[socialist]] [[planned economy]]. This model involves the direct determination of physical quantities to be produced in each industry, which are used to formulate a consistent economic plan of resource allocation. This method of planning is contrasted with price-directed [[Lange model|Lange-model socialism]] and Soviet-style [[material balance planning]].<ref>{{cite book|last1=Loucks|first1=William Negele|last2=Whitney|first2=William G.|title=Comparative Economic Systems|url=https://archive.org/details/comparativeecono0000louc_c2j3|url-access=registration|date=1973|publisher=Harper & Row|isbn=9780060440459|pages=[https://archive.org/details/comparativeecono0000louc_c2j3/page/178 178–179]|edition=9th}}</ref>

In the economy of the [[Soviet Union]], planning was conducted using the method of material balances up until the country's dissolution. The method of material balances was first developed in the 1930s during the Soviet Union's rapid industrialization drive. Input–output planning was never adopted because the material balance system had become entrenched in the Soviet economy, and input–output planning was shunned for ideological reasons. As a result, the benefits of consistent and detailed planning through input–output analysis were never realized in the [[Analysis of Soviet-type economic planning|Soviet-type economies]].<ref>''Towards A New Socialism'', 1993, by Paul Cockshott and Allin Cottrell. Coronet Books Inc. 978-0851245454. "Planning in the USSR", (P.79)</ref>