Interest in structural change over time has created a demand for analytical
tools that can assist in exploiting trends and uncover tendencies in
individual sectors or parts of sectors within the context of an economywide
system of accounts. This paper offers an alternative approach and is designed
to be used with annual
input-output or social accounting systems.
To date, analysts have been faced with the prospect of conducting simple
comparative static approaches or the enormity of the task involved in
constructing dynamic models with complex lead and lag structures.
The temporal Leontief inverse, introduced in this paper, offers a less
complex, more tractable method for examining structural change when a time
series of input-output tables is available.
The method draws upon some earlier work that proposed the notion of a field
of influence of change and explored alternative methods of decomposition of
change.