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Product-to-Product Tables via Product-Technology with No Negative Flows

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  • Clopper Almon
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    Abstract

    This paper presents and evaluates a way of making product-to-product tables from Use and Make matrices that are of immediate relevance to any statistical office that makes input-output tables. Two ways of making a product-to-product table are in common practice: one based on the product-technology assumption and the other on the industry-technology assumption. The industry-technology assumption is recognized as highly implausible but is often used because the product-technology assumption frequently leads to small negative flows which make no economic sense. This paper shows how a slight adjustment in the product-technology assumption leads to an algorithm that is certain to avoid negative flows yet keeps close to the spirit of the product-technology idea. Some details of the application of this method to the USA table for 1992 are reported. Similar applications to every American table since 1958 have given consistently sensible results. A computer program for the method is available.

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    File URL: http://www.tandfonline.com/doi/abs/10.1080/095353100111263
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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Economic Systems Research.

    Volume (Year): 12 (2000)
    Issue (Month): 1 ()
    Pages: 27-43

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    Handle: RePEc:taf:ecsysr:v:12:y:2000:i:1:p:27-43

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    Related research

    Keywords: Product-TO-PRODUCT Input-OUTPUT Tables; Product Technology; Symmetric Input-OUTPUT Tables; Industry Technology;

    References

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    1. Raa, M.H. ten & Chakraborty, D. & Small, J.A., 1984. "An alternative treatment of secondary products in input-output analysis," Open Access publications from Tilburg University urn:nbn:nl:ui:12-382055, Tilburg University.
    2. ten Raa, Thijs, 1988. "An Alternative Treatment of Secondary Products in Input-Output Analysis: Frustration," The Review of Economics and Statistics, MIT Press, vol. 70(3), pages 535-38, August.
    3. ten Raa, Thijs & Chakraborty, Debesh & Small, J Anthony, 1984. "An Alternative Treatment of Secondary Products in Input-Output Analysis," The Review of Economics and Statistics, MIT Press, vol. 66(1), pages 88-97, February.
    4. Raa, M.H. ten, 1988. "An alternative treatment of secondary products in input-output analysis: Frustration," Open Access publications from Tilburg University urn:nbn:nl:ui:12-381958, Tilburg University.
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    Cited by:
    1. Soklis, George, 2009. "The Conversion of the Supply and Use Tables to Symmetric Input-Output Tables: A Critical Review," MPRA Paper 46873, University Library of Munich, Germany.
    2. Tomaz Ponce Dentinho & Eduardo Amaral Haddad & Vasco Silva & Alexandre Alves Porsse, 2014. "Multipliers In An Island Economy: Thecase Of The Azores," Anais do XL Encontro Nacional de Economia [Proceedings of the 40th Brazilian Economics Meeting] 174, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
    3. Konstantins Benkovskis & Ludmila Fadejeva & Robert Stehrer & Julia Woerz, 2012. "How Important is Total Factor Productivity for Growth in Central, Eastern and Southeastern European Countries?," Working Papers 2012/05, Latvijas Banka.
    4. repec:onb:oenbwp:y:2013:i:1:b:1 is not listed on IDEAS

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