What is the input-accession analysis?
Analysis of entry-access is a strategy within the behavioral economy that seeks to understand and qualify the impact of activities in one business sector on another sector in the same general economy. This approach can be used to evaluate economic connections in the local economy, the national economy or even the world economy. Analysis of this type can also be used to identify the impact of one company actions on other companies that operate in the same industry.
The general concept for input analysis was developed by Wassily Leontief, which later received the Nobel Commemorative Award in Economic Sciences for its work in defining the concept and development of the model that is still used to illustrate the findings that result from the analysis. Demonstrations on how different industries depend on other industries to produce the raw materials they need can use a simple matrix to demonstrate how the levels of production in one industry can have positive or negativeeffect on the interconnected industry. At the same time, the input analysis can show how these changes in industry or the industry group can either support growth in the economy or undermine the stability of this economy, causing the economic crisis.
The classic example of the input-accession analysis begins with the production of goods in one industry, which are necessary to support the production of goods in another industry. For example, coal must be mined to provide steel materials. If unfavorable conditions weaken the coal industry to the extent that the mining operations are reduced, the steel industry must find some way to compensate for this reduced production to prevent the creation of steel. Because real coal tonnage that goes to the steel industry leads to a lower amount of tonnage steelimatheria, input analysis allows the difference and facilitates the determination of the effect of changing coal productionBU steel.
Economists and national governments often use the model analysis model-outstanding to screen the impact of some changes in industries that have a certain type of interconnection. If you do so, it allows you to find out whether these changes will create any short -term economic effects that are not desirable, and if the changes could cause a chain of events that would lead to a recession or other type of economic crisis. Using an input-accession analysis for a precise project, how changes will affect the economy, it is possible to use the government-based initiatives to support these changes and the following events, or find ways to minimize the impact of these changes and avoid some economic decline.