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The 2007 Washington Input-Output Model

Released September 2012 (Revised October 2015)

In 2010, seven state agencies and the legislative staff, under the direction of Dr. William Beyers, University of Washington Geography Professor, and Marc Baldwin, Office of Financial Management (OFM), initiated the estimation of a new version of the Washington State Input-Output (I-O) model. OFM staff member Dr. Ta-Win Lin served as the project coordinator.

The Washington Input-Output Study

Note: Links to individual chapters and tables are below.

This I-O model represents a new estimate of the structure of the Washington economy. Economists from participating state agencies helped conceptualize the new modeling effort, and helped compile, estimate, and review data and industry information used as inputs for this model. At the heart of this new model was a survey of businesses in the Washington economy. Over 2,500 establishments responded to this survey. The survey data were used with other benchmark information to create the new I-O model.

Chapter 1: The Washington Input-Output Tables PDF
The state I-O table provides a detailed and complete picture of the state's economic structure, including interindustry linkages, and the economy's dependence on U.S. domestic and international markets. Chapter 1 describes the 2007 table.

Chapter 2: The 2007 Washington Input-Output Table: Methodology and Data PDF
The 2007 study represents the eighth estimate of an I-O model for the Washington economy. The first table (based on the year 1963) was published in 1967. Subsequent state I-O tables were constructed for the years 1967, 1972, 1982, 1987, 1997 and 2002. The 1963, 1967, 1972, 1982, and 1987 tables were largely based on surveys of industrial establishments in Washington state. The 1997 table was estimated using a non-survey approach, and was based on the structure of the 1987 table. The 2002 and 2007 models have used extensive surveys of Washington industries to provide key information about markets and sources of supply. This survey data was supplemented by many other data sources to develop the I-O table and model reported here for the year 2007. Chapter 2 describes the industrial sectors defined in the 2007 table, and data sources and methodologies used in the construction of the table.

Chapter 3: The Washington Input-Output Models for Impact Analysis PDF
The input-output table provides estimates of the interdependence of industrial sectors in the state economy. It reports the distribution of sales and purchases of each sector in the state economy. It reports business sales to industrial sectors and to final demand categories (households, investors, and governments) located in Washington state, as well as to markets outside Washington state (exports to other parts of the U.S., to foreign countries, and to the federal government). The table also identifies purchases made by sectors from Washington industries, payments of labor income and other value added, and purchases made out-of-state.

The input-output table can then be used to build a model that traces out the circular flows associated with these purchases and sales relationships. The input-output model can be formulated so that it can be used as an analytical tool allowing estimation of ripple effects on the state economy as a result of these interdependencies. Two spreadsheets are provided that assist users in conducting economic impact analysis with this model – one for simple analysis and another for complex analysis. Chapter 3 discusses these impact models and describes how to use them.

Chapter 4: The Input-Output Impact Multipliers PDF
The estimated ripple effects on the state economy resulting from an external change can be summarized into the "multiplier" concept. I-O models can be used to estimate various types of multipliers. They simply show, given a specified economic change, the total impact on the state economy. This impact can be depicted in several ways, and Chapter 4 reports several estimates of multipliers for quick reference. In this chapter, employment, income, and output multipliers are reported.

Last updated: October 26, 2016
E-mail: OFM.Forecasting@ofm.wa.gov