This monograph is about the multi regional input-output model used in
long-run simulation. The input-output technique was originally developed
for spaceless, short-term analysis of a national economy. However, its
high potential as an analytical tool has resulted in an expansion of its
application in various directions. Thus, we now have the inter- and mul
tiregional input-output model, in which a nation is broken down into a
number of interacting regions, and some applications dealing with
long-range projections of input-output systems. This study attempts to
integrate those two directions within the framework of interregional
simulation modeling. A major problem with the multiregional input-output
model for long-run simulation is how to update the technical and trade
coefficients in the model. This study focuses on the trade coefficient
updating problem, and a solution is presented in which a trade
coefficient model is coupled with the price model built into the
input-output system. When I began this project, the main problem facing
me was not purely theoretical but a very practical one: how to design an
interregional model for Indonesia. Indonesia is a country characterized
by its quite uneven population distribution over the archipelago. My
interest was in the formation of its settlement policy, and the use of
modeling to assist in this process. This original intention may be
evident in various parts of the text.