A Comparison of Some Alternatives to Input-Output Multipliers

An input-output table is not merely a device for displaying economic information; it is above all an analytical tool. Internal indices of purchases and sales and matrix triangulation have been suggested as two alternative approaches for measuring the interdependence of sectors within an economy without building a complete input-output model (Bromley; Leontief 1951). The internal indices of purchases and sales and matrix triangulation approaches represent computational short-cuts relative to those required to develop a complete input-output model. Alternative sources of data are needed to calculate internal indices of purchases and sales, but these indices provide information on interdependencies in an economy without the extensive data collection and computational effort required to complete an inputoutput model (Bromley). Each approach identifies those sectors, which when exogenously stimulated, will generate the greatest indirect effects on the economy. Bromley also suggests that internal indices of purchases are reasonable substitutes for the traditional output multipliers. Furthermore, a combination of information from the internal