Object-Oriented Interindustry Systems: Proof of Concept
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This document provides a proof-of-concept demonstration of an object-oriented approach to modeling an inter-industry system. The example framework uses a small CGE model based on a three-sector social accounting matrix (SAM). The economy is shocked by changing total factor of productivity in the production function, the new equilibrium is determined in classical CGE fashion, and the original SAM is updated to conform to the new equilibrium solution. In this way,the efficiency of the Object-oriented modeling (OOM) approach can be emphasized in the context of the computational simulations of inter-industry systems by a simplified CGE example written in Python. Since this example implemented as only a possible application of the OOM, the proof of the concept should be interpreted as a particular but among the most difficult economic modeling cases.