Four Centuries of Theory & Technique

in One Web-Centric Tool

Hank Robison | September 12, 2012

L E O N T I E F

E C O N O M I C B A S E

C E N T R A L P L A C E T H E O R Y

N A T I O N A LI N T E R N A T I O N A L

W O R L D M O D E L S

E M S I M R S A M M O D E L

C L A S S I C A L E C O N O M I S T

S

S T O N E

Historical Roots ofINPUT-OUTPUT & SOCIAL ACCOUNTING THEORY

Classical Econ-omists

François Quesnay(1694–1774)

models

William Petty(1623–1687)

inter-connectedness/circulation

Wassily Leontief(1906–1999)

INPUT-OUTPUT ANALYSIS

Firms

Households

GO

OD

S

PA

YM

EN

TS W

AG

ES

LA

BO

R

Firms

Households

GD

P GD

IWassily Leontief(1906–1999)

INCOME & PRODUCT ACCOUNTING

Resident-

serving firms

Export-serving firms

Households

PAYMEN

T

WA

GE

S

PAYMEN

T

WAGES

R E G I O N A L B O U N D A R Y

L E A K A G E

LE

AK

AG

E

L E A K A G E

Export-based TheoryREGION- BUILDING

VS. REGION-FILLING INDUSTRY

Resident-

serving firms

Households

PAY

ME

NT

PAYMEN

T

WAGES

R E G I O N A L B O U N D A R Y

LE

AK

AG

E

L E A K A G E

Export-based TheoryRESIDENTS’ OUTSIDE INCOME

Central Place Theory

Walter Christaller(1893–1969)

August Lösch(1906–1945)

TitleSUBTITLE

Drainage region

H Y D R O L O G I C D I V I D E

Seattle Functional Economic AreaSELECTED CROSS-SECTION

S P O KA N E- C D A

SEATTLE

S A N D P O I N T L E W I S T O N

M O S C O W -P U L L M A N

O R O F I N O

K A M I A H

YA K I M A

S P O KA N E- C D A

SEATTLE

S A N D P O I N T L E W I S T O N

M O S C O W -P U L L M A N

O R O F I N O

K A M I A H

YA K I M A

Seattle Functional Economic AreaSELECTED CROSS-SECTION

S P O KA N E- C D A

SEATTLE

S A N D P O I N T L E W I S T O N

M O S C O W -P U L L M A N

O R O F I N O

K A M I A H

YA K I M A

Seattle Functional Economic AreaSELECTED CROSS-SECTION

S P O KA N E- C D A

SEATTLE

S A N D P O I N T L E W I S T O N

M O S C O W -P U L L M A N

O R O F I N O

K A M I A H

YA K I M A

Seattle Functional Economic AreaSELECTED CROSS-SECTION

S P O KA N E- C D A

SEATTLE

S A N D P O I N T L E W I S T O N

M O S C O W -P U L L M A N

O R O F I N O

K A M I A H

YA K I M A

Seattle Functional Economic AreaSELECTED CROSS-SECTION

I N S I D E I N C O M E

Earnings (created in Moscow industry) $635,980

Incommuter earnings ($38,863)

Residents’ inside earnings $597,117Property income (created in Moscow industry) $178,074

Claims of absentee owners ($55,203)

Residents’ inside property income $122,871

Residents’ total inside income $719,988

O U T S I D E I N C O M E

Outside property income $37,396

Transfer payments $94,027

Outcommuters’ income $194,315

Residents’ total outside income $325,738

Total Income $1,045,726Data by EMSI www.economicmodeling.com

Residents’ Income AccountMOSCOW, ID

( $ 1 , 0 0 0 )

( $ 1 , 0 0 0 )

Residents’ Income AccountMOSCOW, ID

I N C O M E R E M A I N I N G I N C O M M U N I T Y

I N C O M E L E A V I N G C O M M U N I T Y

Generated Inside

Community

Generated Outside

Community

Generated Inside

Community

Generated Outside

CommunityL

AB

OR

IN

CO

ME

PR

OP

ER

TY

IN

CO

ME

N/A

N/A

Residents’ Income AccountKETCHUM/SUN VALLEY, ID

I N C O M E R E M A I N I N G I N C O M M U N I T Y

I N C O M E L E A V I N G C O M M U N I T Y

Generated Inside

Community

Generated Outside

Community

Generated Inside

Community

Generated Outside

Community

LA

BO

R I

NC

OM

EP

RO

PE

RT

Y I

NC

OM

E

N/A

N/A

Com-munity Economic Base*(AGGREGATE SECTORS)MOSCOW, ID University of Idaho 49%

Residents’ Outside Income 17%

Government 15%

Central Functions 14%

Other 5%

* Percentage of Total Jobs Explained by Exporting Sectors

C H A N G E F I N A L

D E M A N D

Richard Stone(1913–1991)

SOCIAL ACCOUNTING

C H A N G E F I N A L

D E M A N D

C H A N G E F I N A L

D E M A N D

Change in Govt. Income

& Expenditures

Change in Demographic

s

Change in 800

Occupations