Linking Economic Model and Engineering Model: Application of Sequential Interindustry Model (SIM)

A conventional approach to model the regional economic impacts of a catastrophic disaster has been to employ the results from an engineering model, such as lifeline network model, in an economic model, for example input-output framework or computable general equilibrium model. However, due to the differences in modeling scheme between economic and engineering models, this type of data feed creates problems regarding sensitivity and dynamics of the impacts. In this paper, Sequential Interindustry Model (SIM) is used to disaggregate the process of production chronology to become more sensitive to the changes/damages of economic activities under a disaster situation. SIM is particularly useful to simulate the dynamic processes of impact propagation and of structural changes after a catastrophic disaster. In this paper, the issues and applications of SIM are discussed with numerical examples.