The Washington Input-Output Model
The 2012 Washington State Input-Output model is a 52-sector model of the state economy using the North American Industrial Classification System definition of industries. The Model contains six final demand categories and provides estimates of payments of labor income, other value added and purchases by Washington industries from elsewhere in the United States and from foreign countries.
In This Section
The 2012 Washington Input-Output Model
Released February 11, 2021
This model was developed by Dr. Fanny B. Roberts, Forecasting and Research Division, Office of Financial Management and Dr. William Beyers, University of Washington Geography Professor. The authors are grateful to Marc Baldwin and Jim Schmidt, Office of Financial Management, for the encouragement and support throughout the 2012 model study period. The authors also want to thank William Baker, Jr., Steve Cleverdon, Dick Conway, Hart Hodges, Jeff Mitchell, Pete van Moorsel and Erik Whitaker, who reviewed the report and helped validate estimates contained in this model. Dr. Roberts served as the project coordinator.
The Washington Input-Output Study
Note: Links to individual sections and tables are below.
This I-O model represents a new estimate of the structure of the Washington economy. The model is largely based on the structure of the 2007 model. It was constructed using other benchmark information to create the new I-O model.
Section 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. and international markets and sources of inputs. Section 1 describes the 2012 table, and uses a highly aggregated version of the model to describe its structure. It also provides summarized comparisons of exports and imports over the history of the Washington Input-Output models.
Section 2: The 2012 Washington Input-Output Table: Methodology and Data PDF
The 2012 Washington Input-Output Model interindustry structure was based on the input-structure of the 2007 model. It is the ninth model of the structure of the state economy. Values for sectoral output were largely based on the 2012 U.S. Economic Census, data from the U.S. Bureau of Labor Statistics, and from the U.S. Bureau of Economic Analysis. Estimates of imports and exports were largely based on survey data from the 2007 model. Adjustments were made to balance values to total sales and purchases values largely derived from the Economic Census. Transfers were made of sales/purchases values in certain sectors, such as shipbuilding (Puget Sound Naval Shipyard transferred from federal government) and the U.S. postal service (transferred from federal government to Other Transportation Services).
Section 3: The Washington Input-Output Tables 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 in U.S. and foreign markets.
The input-output table can 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. Three spreadsheets are provided that assist users in conducting economic impact analysis with this model – two for simple analysis and another for complex analysis.
Simple Analysis. If you are modelling an impact scenario that uses sectors with an input structure like that contained in the transactions matrix, you can use these models. You need to enter data as instructed in this spreadsheet to get impact results. Two versions of this model are available. The Type-I model captures the impacts of interindustry linkages in the Washington economy, while the Type II model also captures the impacts of labor income and personal consumption expenditures made in the Washington economy.
Complex Analysis. If you are modelling an impact scenario that departs from the basic structure contained in the transactions matrix, you can specify the input structure of the scenario you are modelling, along with direct sales, direct employment, and direct labor income for this scenario in the complex model formulation. You can follow instructions in this spreadsheet to get impact results. This spreadsheet utilizes the Type II model to compute impacts.
- Impact Worksheets (updated Dec. 2022)
Section 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 Section 4 reports several estimates of multipliers for quick reference. In this section, employment, income, and output multipliers are reported based on the Type II model
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.
- Impact Worksheets – updated June 2019
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.
E-mail: OFM.Forecasting@ofm.wa.gov
The 2002 Washington Input-Output Model
Updated April 2011
In 2006, seven state agencies and the legislative staff, under the direction of University of Washington Geography Professor, Dr. William Beyers, and the Office of Financial Management (OFM) Assistant Director of Forecasting Division, Dr. Irv Lefberg, initiated the estimation of a new version of the Washington State Input-Output model. OFM staff Dr. Ta-Win Lin served as the project coordinator.
The Washington Input-Output Study
This input-output study 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 1400 establishments responded to this survey. The survey data were used with other benchmark information to create the new input-output model.
Chapter 1: The Washington Input-Output Table for 2002
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 2002 table.
Chapter 2: The 2002 Washington Input-Output Table – Methodology and Data
The 2002 study represents the seventh estimate of an input-output model for the Washington economy. The first table (based on the year 1963) was published in 1967. Subsequent state input-output tables were constructed for the years 1967, 1972, 1982, 1987, and 1997. 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. Chapter 2 describes the industrial sectors defined in the 2002 table, and data sources and methodologies used in the construction of the table.
Chapter 3: The Input-Output Table for Impact Analysis
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 to markets outside Washington State (exports to other parts of the United States, 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 assists 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
The estimated ripple effects on the state economy resulting from an external change, can be summarized into the “multiplier” concept. Input-output 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: April 4, 2011
E-mail: OFM.Forecasting@ofm.wa.gov
Historic Washington Input-Output Models
Washington state has now supported construction of nine input-output models. They are benchmarked against the years 1963, 1967, 1972, 1982, 1987, 1997, 2002, 2007 and 2012. They are presented in their original form, and in current dollars.
