On the limited usability of the inoperability IO model*. Issue 3 (3rd July 2017)

• Record Type: Journal Article
• Authors: Oosterhaven, Jan
• Is Part Of: Economic systems research. Volume 29:Issue 3(2017)
• Page Start: 452
• Page End: 461
• Publication Date: 2017-07-03
• Subjects: Disasters -- supply shocks -- elasticities -- inoperability -- input–output model; Input-output analysis -- Periodicals; 339.23
• DOI: 10.1080/09535314.2017.1301395
• Languages: English
• ISSNs: 0953-5314

Abstract

ABSTRACT: This note shows that the inoperability input–output model (IIM) estimates only a part of mainly the negative indirect economic impacts of disasters, whereas it neglects most of the positive indirect impacts. This means that the IIM is not suited to prioritize industries for policy interventions that aim at reducing the negative impacts of such disasters. Besides, this note shows that the application of the IIM is problematic and tends to overestimate the subset of impacts that the model is able to quantify. Finally, we identify two approaches that much better capture the variety of different disaster impacts.