Understanding the Shortcomings of Commodity-based Technology in Input-Output Models: an Economic-Circuit Approach
AbstractThe Make-Use Model serves as a basis for most national accounting systems as the System of National Accounts (SNA) and is acknowledged as the most suitable model for interregional analysis. Two hypotheses are traditionally made featuring either industry-based technologies (IBT) or commodity-based technologies (CBT). While industry-based technologies can be easily interpreted in terms of a demand-driven economic circuit, it will be shown that: (1) commodity-based technologies cannot be interpreted as a demand-driven economic circuit because this involves computing the inverse of a matrix (the matrix of industry output proportions), which is either impossible or generates negative terms; (2) the only way to obtain a plausible explanation of CBT is to convert it into a supply-driven model. This provides a new reason for rejecting CBT: either IBT is adopted but violates Kop Jansen and ten Raa's axioms, or CBT is chosen but must be converted into a poor or unrealistic supply-driven model. Copyright Blackwell Publishers, 2004
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Wiley Blackwell in its journal Journal of Regional Science.
Volume (Year): 44 (2004)
Issue (Month): 1 ()
Contact details of provider:
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-4146
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Randall Jackson & Walter Schwarm, 2011.
"Accounting Foundations for Interregional Commodity-by-Industry Input-Output Models,"
Research Paper 2011-01, Regional Research Institute, West Virginia University.
- Randall Jackson & Walter Schwarm, 2011. "Accounting foundations for interregional commodity-by-industry input-output models," Letters in Spatial and Resource Sciences, Springer, vol. 4(3), pages 187-196, October.
- Ichihara, Silvio Massaru & Guilhoto, Joaquim José Martins & Imori, Denise, 2009. "Combining geoprocessing and interregional input-output systems: An application to the State of São Paulo in Brazil," MPRA Paper 30696, University Library of Munich, Germany.
- Thijs ten Raa & JosÃ© Rueda-Cantuche, 2013. "The Problem of Negatives Generated by the Commodity Technology Model in Inputâ€“Output Analysis: A Review of the Solutions," Journal of Economic Structures, Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 2(1), pages 1-14, December.
- Argyrios D. Kolokontes & Chrysovalantis Karafillis & Fotios Chatzitheodoridis, 2008. "Peculiarities And Usefulness Of Multipliers, Elasticities And Location Quotients For The Regional Development Planning: An Other View," Romanian Journal of Regional Science, Romanian Regional Science Association, Romanian Regional Science Association, vol. 2(2), pages 118-133, December.
- Fedriani, Eugenio M. & Tenorio, Ángel F., 2012. "Simplifying the input–output analysis through the use of topological graphs," Economic Modelling, Elsevier, vol. 29(5), pages 1931-1937.
- Randall Jackson & Walter Schwarm, 2007. "Issues in the Implementation of Interregional Commodity by Industry Input-Output Models," Working Papers 200712, Regional Research Institute, West Virginia University.
- Ichihara, Silvio Massaru & Guilhoto, Joaquim José Martins & Imori, Denise, 2008. "Geoprocessing and estimation of interregional input-output systems an application to the state of Sao Paulo in Brazil," MPRA Paper 54036, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.