The Decomposition by Factors in Direct and Indirect Requirements: With Applications to Estimating the Pollution Generation

Gim and Kim (1998) showed the general relation between the two different notions of direct and indirect input requirements of commodity to support a unit of final demand of commodity , , and that to produce a unit of gross output of commodity , , in the open static input-output model. In this paper, we show that can be decomposed into the direct and the technical indirect effects, into the direct, the technical indirect, and the interrelated indirect effects, and the element of the Leontief inverse into four different parts as the final demand, the direct, the technical indirect, and the interrelated indirect effects.