Abstract
A 484-sector Massachusetts static input-output (MIO) model is conjoined with the Massachusetts Economic Policy Analysis (MEPA) model which includes supply relationships, industrial location responses to changing costs, and a production function allowing substitution among inputs. This makes it possible to draw upon the distinctive features of both models. The technique is demonstrated by a study that analyzes the effect on the Massachusetts economy of the expansion of a container port facility at Boston. The approach presented here has general applicability to policy analysis and planning studies that require both the detailed regional interindustry interactions captured by a disaggregated input-output model and the cost, price, supply, location, and demand interdependencies which are endogenous in the best regional forecasting and policy simulation models.
Get full access to this article
View all access options for this article.