A technique used in economics for tracing resources and products within an economy. The
system of producers and consumers is divided into different branches, which are defined in terms of the resources they require as
inputs and what they produce as
outputs. The quantities of input and output for a given time period, usually expressed in monetary terms, are entered into an input-output
matrix within which one can analyse what happens within and across various sectors of an economy where
growth and decline takes place and what effects various subsidies may have. (
Krippendorff )
