The inoperability extended multisectoral model and the Role of Income Distribution: A U.K. Case Study

• Published date: 01 September 2019
• Author: Andrea Karim El Meligi,Maurizio Ciaschini,Yousaf Ali Khan,Rosita Pretaroli,Francesca Severini,Claudio Socci
• Date: 01 September 2019
• DOI: http://doi.org/10.1111/roiw.12368

THE INOPERABILITY EXTENDED MULTISECTORAL MODEL AND

THE ROLE OF INCOME DISTRIBUTION: A U.K. CASE STUDY

by Andrea Karim ElMeligi*, Maurizio Ciaschini

University of Macerata

Yousaf Ali Khan

GIK Institute of Engineering Sciences and Technology

and

Rosita Pretaroli, Francesca Severini, Claudio Socci

University of Macerata

In this paper, an effortis made to enrich the current input–output (I–O) methodologies employed for

studying disruptive events,by extending the I–O framework and including all the phases of the circular

flow of income into the overall disaster impact. In this respect, the Inoperability Extended Multisec-

toral Model is created and implemented in order to estimate the higher-ordereffects in terms of value

added and disposable income. The social accounting matrix,referred to the United Kingdom, is con-

structed and proposed as a starting point for assessing the effects of a system perturbation related to

the eruption of the Volcano Eyjafjallaj€

okull, in mid-April 2010, which affected air transport services

due to the full closure of the U.K.s airspace for several days. Finally, the ranking of those commod-

ities and institutional sectors which are badly affected can provide guidance to policymakers in order

to minimize the overall impact on the economy.

JEL Codes: D31, D57, Q54

Keywords: disaster impacts, inoperability input–output model, income distribution, social accounting

matrix

1. Introduction

Today, economic systems have become more and more complex and interde-

pendent. The advancement toward a massive and complex society implies realiz-

ing and understanding why these interactions have to be considered a critical

aspect for the global economy.

The increasing degree of interdependencies, leading to a higher risk and vul-

nerability among economic activities and institutions, affects societys ability to

manage accidents, crises, and disasters. There is a long list of types of recent

events—natural and man-made hazards, such as earthquakes, floods, snow

Note: The authors gratefully thank the anonymous referees and editor D. S. Prasada Rao for

criticisms and suggestions, which led to significant improvements of the paper.

*Correspondence to: Andrea Karim El Meligi, Department of Economics and Law, University

of Macerata, Via Crescimbeni 14, 62100 Macerata, Italy (a.elmeligi@unimc.it).

V

C2018 International Association for Research in Income and Wealth

1

Review of Income and Wealth

DOI: 10.1111/roiw.12368

bs_bs_banner

617

Series 65, Numb er 3, September 2019