The Interindustry Employment Demand Variable: An Extension of the I-SAMIS Technique for Linking Input—Output and Econometric Models

Abstract

Moghadam and Ballard's I-SAMIS (integrated small-area modeling of the industrial sector) approach of linking input—output and econometric models is extended in three ways: (1) the interindustry demand variable (IDV), which incorporates input—output linkages into time-series employment equations, is modified to reflect differences in labor productivity among industries; (2) the IDVs are calculated by using a regional, rather than national, input—output model; and (3) the industry focus is broadened to include nonmanufacturing industries. The paper is concluded by a discussion of the I-SAMIS model constructed for the Louisville metropolitan area.