EIA input-output model simulation procedures. Technical Memorandum TM/IA/78-03

The Macroeconomic Analysis Division of the Office of Integrative Analysis operates an input-output (I/O) model which simulates output and employment (jobs) for 129 sectors of the economy and employment by 470 occupational categories for the years 1980 and 1985. The Bureau of Labor Statistics I/O model is based on benchmark interindustry studies published by the Bureau of Economic Analysis (BEA) for the year 1963. A brief overview of the BEA I/O system outlining concepts characteristic of all I/O systems is presented. This is followed by a discussion of the BLS procedure for developing an I/O model capable of making projections for the years 1980 and 1985. Next, the actual simulation procedures used to generate output, employment, and occupational levels with the BLS I/O model are presented. Last, there is a discussion of some of the limitations of the methodology.