Important Coefficients and Structural Change: A Multi-layer Approach

Abstract

Important coefficients within input–output matrices have been defined in terms of their so-called ‘tolerable limits’. Such coefficients have been utilized as a means to study economic structures. Important coefficients can also be useful for finding the characteristic production structure, based on endogenous information only. Graph theory provides the analytical methods to interpret the results. By applying the method to a series of matrices for one economy, it is possible to establish the structural evolution of that system.

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