Comparative Analysis Of PIOT And MIOT By Triangularizing Their Coefficient Matrices

The Input-output Analysis (10A) quantifies the interdependent relationship among the several of sectors of economic system. According to the discrepancy of accounting units, the models can be divided into the Physical Model and Monetary Model. By comparing the Physical Input-output Model and Monetary Input-output Model and concerning the advantages and disadvantages of these two models, it is available to reflect the current economic-economic and economic-environment systerms’ relationship from the perspectives of monetary flow, material flow and energy flow.This dissertation selects the Input-output Table of Japan (2005) to be the object of study, dealing with the direct consumption coefficient of Physical Input-output Table and Monetary Input-output Table respectively by Triangularizing of the coefficient matrix. From the results of triangularization and their economic indications, we can detect these two tables’connections and differences. Specifically, that is they both rank in gradual trend from the senior sectors to the elementary sectors after the triangularization. However, MIOT reveals a much more compact relationship among the economic sectors, while PIOT represents a more apparent material’s flowing trend among the economic sectors, which excludes the effect of price as well. In addition, the instance of the Steel Manufacture Enterprise’Input-output condition in the automobiles’producing process of Japan supports the above mentioned conclusion. Meanwhile, some recommendations are put forward in consideration of the selective advantage of these two kinds of Input-output Tables.At last, the dissertation’s original point is that the introducing of the comparable analysis between different Input-output Tables. This makes it applicable to distinguish the Physical Input-output Table and Price Input-output Table in discrepant accounting units.