Input-Output Tables (I-O tables) are a fundamental tool in economics used to analyze the interdependencies of industries and sectors within an economy. They provide a detailed snapshot of how goods and services are produced, consumed, and traded within a specific region or country.

Key components of an I-O table:

• Intermediate inputs: The goods and services that industries use to produce their final output.
• Final demand: The goods and services purchased by consumers, businesses, governments, and exports.
• Value added: The difference between the value of an industry's output and the value of its intermediate inputs.

How I-O tables are used:

• Economic analysis: I-O tables are used to analyze the economic impact of changes in industries, government policies, or external shocks.
• Regional analysis: I-O tables can be used to study the economic structure of specific regions or countries.
• Forecasting: I-O tables can be used to forecast future economic growth and development.

Key concepts in I-O analysis:

• Multiplier effect: The idea that a change in one industry can have a ripple effect on other industries throughout the economy.
• Leontief inverse: A matrix that shows the direct and indirect requirements of industries for each unit of final demand.