Powered by OpenAIRE graph
Found an issue? Give us feedback
addClaim

Several shades of input-output models for geosectoral stress testing

Authors: Edouard Pineau;

Several shades of input-output models for geosectoral stress testing

Abstract

Input-output (IO) modeling has become the standard methodology for stress testing economic value chains against production and cost inflation shocks. Notwithstanding their widespread deployment, some deficiencies exist in the literature regarding investigations into the varied properties and extensive applications of these modeling frameworks, especially when applied for stress testing exercises. This paper addresses these deficiencies by focusing on how model outcomes are affected by the assumed origin of a shock-whether it is applied to final demand, gross value added, intermediate consumption, or total output variables. Moreover, we look on how different parts of the modeling framework interact, in particular between price and production equations. We also show the relation between the introduction of binary passthrough mechanisms and the asbence of geosectoral feedbacks, and more generally how the passthrough rates can be integrated in all Leontief stressing assumptions. We present a thorough review that integrates theoretical principles with practical applications, drawing on examples from the environmental stress tests (carbon price or biodiversity intactness) currently required of financial institutions, to illuminate the theories of IO modeling for stress testing. 

  • BIP!
    Impact byBIP!
    selected citations
    These citations are derived from selected sources.
    This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    0
    popularity
    This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
    Average
    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    Average
    impulse
    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
    Average
Powered by OpenAIRE graph
Found an issue? Give us feedback
selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
Related to Research communities
Italian National Biodiversity Future Center
Upload OA version
Are you the author of this publication? Upload your Open Access version to Zenodo!
It’s fast and easy, just two clicks!