Decomposing Input–Output Tables to Establish the Effects of Temporal Changes in Demographic and Economic Characteristics

This paper reports on an analysis of economic and demographic changes in the UK during the period 1981–91, using an extended input–output (IO) formulation designed to measure impacts of such changes in economic and demographic systems. We derive a simple temporal change decomposition method and apply it to the extended IO formulation. This is then linked to a labour market account decomposition, and the conjoint decomposition applied to two labour market accounts and two IO tables for the UK. We are able to identify the impacts on the demographic and economic systems caused by changes in the economy, economic activity of the population, natural population change, migration and coefficient shifts of different types.