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Best Way to Describe A Inconsistency

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jdunhamny

I need a good technical description of how indirect output can be larger than intermediate expenditures for a one sector model.  

thanks for your help.

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    Candi Clouse, PhD

    HI there!

    The results that you see for Indirect Effects show how the Direct spending on Intermediate Inputs flows through the supply chain. This money continues to bounce around the Region until spending on each Commodity reaches $1. Therefore, the larger the supply chain, the more the Intermediate Inputs can be spent and re-spent in the economy.

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