Using a linear regression approach to sequential interindustry model for time-lagged economic impact analysis

The input-output (IO) model is a powerful economic tool with many extended applications. However, one of the widely criticized drawbacks its rather lengthy time lag in data preparation, making it impossible to apply IO high-resolution time-series analysis. conventional thus unfortunately unsuited for In this study, we present an innovative algorithm that integrates linear regression techniques into derivative method, Sequential Interindustry Model (SIM), overcome inherent shortcomings statistical lags studies. regressed relationship can be used predict, short term, accumulated chronological impacts induced by fluctuations sectorial demands under disequilibrium conditions. A simulated calculation presented serve as illustration and verification new method. future, application beyond studies broader problems system