A TRANSPORTATION AND PRICE-SENSITIVE INTERREGIONAL INPUT-OUTPUT MODEL

A MODIFIED FORM IS PRESENTED OF A LEONTIEF-TYPE INPUT-OUTPUT MODEL WHOSE TECHNOLOGICAL COEFFICIENTS ARE SENSITIVE TO CHANGES IN TRANSPORTATION COSTS AND FACTORY PRICES OF COMMODITIES. THE MODEL IS PROPOSED AS A DEVICE FOR FORECASTING INTERREGIONAL COMMODITY FLOWS AS A FIRST STEP IN FORECASTING TRANSPORTATION DEMANDS THROUGHOUT A REGION. A THEORETICAL FRAMEWORK IS DEVELOPED TO DERIVE A SET OF RELATIONSHIPS THAT MAY BE ESTIMATED STATISTICALLY AND USED TO COMPUTE REVISED TECHNOLOGICAL COEFFICIENTS WHENEVER THERE ARE CHANGES IN DELIVERED PRICES OF COMMODITIES. THE IMPLEMENTATION OF THE LEONTIEF-TYPE MODEL REQUIRES THAT ECONOMIC DATA FOR A BASE YEAR BE COLLECTED AND ARRANGED IN AN INPUT-OUTPUT TABLE TO REVEAL THE INTERREGIONAL FLOW OF COMMODITIES AMONG THE VARIOUS INDUSTRIES SITUATED IN THE STUDY AREA. THE INTERRELATIONSHIPS REVEALED BY THE BASE YEAR INPUT-OUTPUT TABLE CAN BE USED TO PREDICT THE SHIFT THAT MIGHT BE EXPECTED TO OCCUR AS A RESULT OF A GIVEN CHANGE IN DEMAND. THE FLOWS OF COMMODITIES DESCRIBED BY THE INPUT-OUTPUT TABLE MUST BE ACCOMPLISHED BY THE TRANSPORTATION SYSTEM. INPUT-OUTPUT ANALYSIS CAN THEREFORE BE USED AS A TOOL IN THE PREDICTION OF CHANGES IN THE DEMAND FOR TRANSPORTATION WHEN THESE ARE A CONSEQUENCE OF CHANGES IN FINAL DEMAND. BECAUSE CHANGES IN TRANSPORTATION COSTS MAY BE AN IMPORTANT SOURCE OF VARIATIONS IN DELIVERED PRICES, THE MODEL IS DESIGNED TO BE SENSITIVE TO SUCH CHANGES. THE TECHNIQUE BY WHICH THE RELATIONSHIPS BETWEEN DELIVERED COSTS AND COMMODITY FLOWS ARE ACCOMPLISHED IS AN ANALYTICAL METHODOLOGY THAT ASSUMES INDUSTRIES BEHAVE LIKE FIRMS THAT MINIMIZE COSTS AND HAVE LINEAR HOMOGENEOUS PRODUCTION FUNCTIONS BELONGING TO A SPECIFIC FAMILY OF SUCH FUNCTIONS.

Media Info

  • Media Type: Print
  • Pagination: p 104
  • Monograph Title: Transportation economics
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00201718
  • Record Type: Publication
  • Files: TRIS, TRB
  • Created Date: Nov 24 1994 12:00AM