Extended input-output model of the region based on Miyazawa's methodology

The article considers a variant of expanded input-output model of the region, based on the methodical work of the Japanese researcher Miyazawa on endogenization of households. Due to the inclusion of household consumption, divided into groups according to the sources of income, in endogenous variables, it is possible to over- come the limitations of traditional static output-input model with exogenous varia- bles of the final demand vector. In the second quadrant of the proposed expanded input-output model of the region, there is a separate matrix of endogenous varia- bles of household consumption, which functionally depend on the values of a ma- trix of household incomes in the third quadrant, and finally on the gross output vector. At the same time, in addition to direct cost coefficients the key exogenous parameters of this model include the values of estimated tax rates, per-unit savings, and the sectoral structure of consumption benefits for each "income" group of households. As a result, we get an extended (according to Miyazawa) matrix mul- tiplier, and construct with its help a regional input-output table, which is more closed due to expansion of endogenous variables. An in-depth system analysis of direct communication and feedback in the regional economic system is achieved by means of the expanded input-output model.