The Québec input-output model is a tool used to simulate the effects of certain actual, potential or hypothetical changes in the Québec economy. These changes consist of various projects involving investment, operating or current consumption expenditures. For example, it is possible to estimate the economic impact of capital expenditures related to an investment, the effects of the operating expenditures of a business or the impact of tourist spending on the Québec economy.
The Québec input-output model is based on Québec input-output tables comprising highly detailed data on trade in goods and services between economic agents. It shows the relations between sectors by indicating for each goods and services category the sectors using them and the sectors producing them.
Once a shock has been simulated in a sector, the model assesses the economic impact by determining how the demand for goods and services propagates between the production sectors directly or indirectly involved. This distribution of goods and services is based on successive rounds of income and expenditure, a process called propagation of demand.
Economic impact studies produced by the ISQ present the direct, indirect, and total effects on manpower, wages and salaries, value added and imports. They also provide an estimate of tax and quasi-tax revenues of expenditure projects. Although they can in no way replace market, profitability or cost-benefit studies, they may constitute a starting point or a very valuable complement of larger studies which could include, for example, ecological, social or other impacts.
The ISQ's responsibility in carrying out an impact study is limited to using the model to measure the economic impact of the initial expenditures estimated by the client. The ISQ is not familiar enough with the project to validate the information supplied by the client but can provide the latter with the information required to adequately process the initial data based on the model's concepts and limitations.
Québec input-output model products and information
Québec’s input-output model: Functioning and applications, édition 2017
This publication on the Québec input-output model describes the various economic and methodological concepts pertaining to this model, as well as the manner in which the model responds to an expenditure shock while respecting the demand propagation process. The matrix equations for this process are provided, along with three simulations produced using the model.
Impact économique pour le Québec, édition 2018
This bulletin focuses on the economic impact results estimated by the input-output model. The simulations used for the comparisons are based on the average spending structures in the productive sectors of the economy at the aggregate level. The model performs simulations in increments of $100 million in operating expenditures for each of the six productive sectors based on resource and employment tables for 2014 and adjustment parameters for 2018.
Personalized impact study
To reach the input-output model team or for any questions about ISQ impact studies, please contact one of the following:
Phone: 418-691-2411, Ext. 3224
Van Phu Nguyen
Phone: 418-691-2411, Ext. 3209