Publication
The Korean Economic Review
Note on the Decomposition by Factors in Direct and Indirect Requirements
Ho Un Gim · Koonchan KimYear 2008Vol. 24No. 1
Abstract
The decomposition by factors in direct and indirect requirements was introduced by Gim and Kim(2005). More specifically, the notion of direct and indirect input requirements of commodity to produce a unit of gross output of commodity j, r , can be decomposed into the direct, the technical indirect effects, and that to support a unit of final demand of commodity , can be decomposed into the direct, the technical indirect, and the interrelated indirect effects in the open static input-output model. This note provides a complementation of the decomposition, which is based on more accurate and consecutively meaningful general relation given by , where the element of the Leontief inverse ij represents the direct and indirect output requirements to support a unit of final demand.