Hello, I just have one simple question. When simulating input-output model, can a change in job could be higher than the existing job number? In other words, if agricultural sector has 1000 jobs in 2010, and I want to simulate job impact in that sector associated with any shock, then could job increase or decrease be far beyond 1000 jobs?
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  • Hello, It depends on what you are trying to model. If you are looking at the contribution of a current industry you would never want the total value for that industry to exceed the current value. When doing economic impact analysis there is no limitation to the amount of jobs you can add to the Model as Input-Output Analysis assumes infinite supply to meet demand. However, it is not necessarily logical to assume that the study area can support an impact far beyond what the sector currently supports. Can you give us a better idea of what you are trying to model?
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