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Abstract
The ability to measure the economic importance of cooperatives to
communities is not purely an academic question. Policy makers,
cooperative organizations, and community development practitioners are
increasingly asking for such information. The most commonly used
methodology is input-output analysis. The limitations of input-output
analysis when applied to cooperatives have not yet been comprehensively
explained in the literature, although they significantly affect the
application of the model as well as the interpretation of results. We discuss
five issues that need to be addressed when using input-output models and
suggest additional analysis that should be completed to gain an accurate
assessment of the local economic impact of cooperatives.