THE INOPERABILITY EXTENDED MULTISECTORAL MODEL AND THE ROLE OF INCOME DISTRIBUTION: AU.K. CASE STUDY by Andrea Karim El Meligi*, 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 effort is 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-order effects 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 havebecome 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 C 2018 International Association for Research in Income and Wealth 1 Review of Income and Wealth Series 00, Number 00, Month 2018 DOI: 10.1111/roiw.12368