An input-output table, shortly written as IOT, describes the purchase and sale relationship of consumers and producers within an economic system. In economics, the input-output model is a quantitative economic technique that represents the interdependencies of various branches of a regional or national economy. Wassily Leontief is the first person who developed the input-output tables and the input-output model and produced them by illustrating the flows between purchases and sales (final and intermediate) of the industry outputs. He also illustrated the sales and purchases of product output and earned a Nobel Prize in Economics for his contributions to economics.
The database of IO (input-output) tables reflects the mechanisms of other data resources such as employment statistics, energy consumption, pollution data and Research and Development expenditure data; it is mainly collected by an enterprise or brand and is classified according to the industry
If you are looking to transform an HTML table into IO (input-output) table, you should bear in mind the two main assumptions. The first assumption is the "technology assumption" and the second assumption is the "assumption of the fixed sales structure." The technology assumption is capable of generating product-by-product IOT that is produced by either the Model A (product technology assumptions) or Model B (industry technology assumptions). Model A assumes that all the products are produced by their own, irrespective of the industries where they are produced. And Model B assumes that every industry has its specific ways of producing the products, irrespective of the product mixes, nature and prices.
The mathematical transformation of HTML table to IO (input-output) table is based on a model described by Eurostat (European Union) Manual of Supply. It is done through the following simple steps:
Step 1: The first step involves reviewing and finalizing the supply and using the matrix.
Step 2: In the second step, the rectangular tables or HTML tables are transformed into the square tables.
Step 3: In the third step, the square HTML table at purchaser's prices is converted to SUT at a basic price.
Step 4: Here, the transformation of square SUT at a basic price to symmetric IO (input-output) table is done with or without the analytical matrices.
Measuring The IO (Input-Output) Tables:
The mathematics of input-output tables is quite straightforward and comprehensive, but the data requirements are enormous. This is because the revenues and expenditures of all economic activities have to be included in the final results. Thus, not all industries or enterprises are able to collect the required information and the quality of data also varies from one industry to another.
Various countries have set rules and regulations, and developed techniques to estimate the IO (input-output) accounts on a monthly, quarterly or annual basis, and the results are accurate and reliable. With IO (input-output) tables, it is easy to collect and organize data from the internet, and different tools are used to transform it into charts. However, the functioning and features of each tool are different from the others. Such a tool is also used to identify economically related industry clusters.