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A note on the inoperability input-output model.

Marco Percoco1

  • 1Department of Economics, Bocconi University, Milano, Italy. marco.percoco@unibocconi.it

Risk Analysis : an Official Publication of the Society for Risk Analysis
|July 13, 2006
PubMed
Summary

This study enhances the inoperability input-output model (IIOM) by introducing analytic tools to assess economic sector reactions to infrastructure disruptions. It provides insights into sector interdependencies following a terrorist attack.

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Area of Science:

  • Economics
  • Operations Research
  • Disaster Management

Background:

  • The inoperability input-output model (IIOM) is extended to analyze economic resilience.
  • Existing models lack detailed insights into inter-sectoral responses to infrastructure shocks.

Discussion:

  • Proposes analytic tools: field of influence and multiplier product matrix.
  • These tools quantify sector reactions to demand shocks and production coefficient changes.
  • Focuses on the impact of terrorist attacks on critical infrastructure.

Key Insights:

  • The extended IIOM provides a framework for understanding cascading economic effects.
  • Analytic tools offer quantifiable measures of sector vulnerability and interdependence.
  • Demonstrates application using a 2003 U.S. economy input-output matrix.

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Outlook:

  • Potential for improved disaster preparedness and economic impact assessment.
  • Further research can refine the model for dynamic and complex shock scenarios.
  • Applicable to various disruption types beyond terrorism.