Konstantin Stadler edited Method_calculation.tex  almost 9 years ago

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standard IO methodology. We used the open source tool pymrio (https://github.com/konstantinstadler/pymrio) for the calculations.  All results are calculated through input-output analysis (IOA) following classic Leontief demand style modeling. IOA is essentially an allocation of production based impacts (here denoted $\textbf{F}$) to the goods and services that flow to final demand (here denoted $\textbf{y}$). The allocation starts from the basic production balance, where gross output $\textbf{x}$ is the sum of total intermediate demand $\textbf{T}$ (with $\textbf{1}$ being the summation vector of appropriate size) and final demand.   \begin{equation}  \textbf{x}=\textbf{T}*\textbf{1}+\textbf{y}  \end{equation}  Normalising intermediate production (to produce one unit of output, we can calculate the required inputs, giving the technical  coefficient matrix A) $\textbf{A}$)  \begin{equation}  \textbf{A=T{x^-1} } \textbf{A}=\textbf{T} * \textbf{x}^-1}  \end{equation}  Then we can combine the above two equations, using what has been known as the Leontief inverse, to estimate the total output for a given demand  \begin{equation}