Regional Input Output Modelling

Input Output (IO) modelling can be used to estimate the initial and secondary impacts of changes to consumption or production by considering the interconnection between industry sectors. NineSquared has developed its own proprietary regional IO model, which provides a detailed dissection of intermediate transactions in an economy, enabling the supply and use of products of an economic system to be described. Our model can be adjusted using widely recognised methodologies for regionalisation of IO tables to assist with:

• Building an evidence base for the need for further detailed studies
• Quantifying the indicative economic impact of a policy or regulatory proposal
•  Ascertaining the impact to the economy as a result of investment in a specific industry

IO analysis models the flow on effect to other industries as spending on one sector flows to spending in other sectors which, in turn, has its own economic impacts. Our IO model can determine the economic contribution impacts of a demand shock at the regional, state, or national level. This includes estimating impacts on output and gross product, employment and income. Input-output modelling is a useful tool for ascertaining the potential economic impact of spending in a certain industry at a point in time and providing a preliminary evidence case for carrying out further detailed studies.