Supply‐side Multiregional Input‐output Models*

This paper introduces a new class of supply‐side multiregional input‐output (MRIO) models and provides the necessary and sufficient conditions on the regional trade matrices that ensure that a generalized supply‐side model will be convergent. The paper also introduces a new version of the row coefficient model, conceived as the “mirror image” of the Chenery‐Moses demand‐side column coefficient MRIO model. Given that the conventional supply‐side input‐output model has been shown to perform equally as well as the demand side model in forecasting exercises, the supply‐side MRIO model is expected to be of value for policy and planning purposes. Moreover, this model is of potential theoretical value for a broad synthesis of demand‐side and supply‐side MRIO models.