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The problem of negatives in input-output analysis: a review of the solutions

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Author Info
Thijs ten Raa () (Universidad de Tilburg)
José M. Rueda-Cantuche () (Universidad Pablo de Olavide)

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Abstract

The main models to construct technical coefficients are the industry technology model and the commodity technology model. The former yields nonnegative coefficients and the latter fulfills nice theoretical properties, such as price invariance. Although the models are very different, this paper presents a flexible formula that encompasses both of them. Various solutions to the problem of negatives of the commodity technology model-including replacements by industry technology based coefficients-are reviewed in our framework.

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Publisher Info
Paper provided by Centro de Estudios Andaluces in its series Economic Working Papers at Centro de Estudios Andaluces with number E2005/07.

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Length: 17 pages
Date of creation: 2005
Date of revision:
Handle: RePEc:cea:doctra:e2005_07

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Related research
Keywords: Input-output analysis; technical coefficients; use and make matrices;

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Find related papers by JEL classification:
C67 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Input-Output Models
D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis

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  1. Thijs ten Raa & José Manuel Rueda Cantuche, 2004. "How to Estimate Unbiased and Consistent input-output Multipliers on the Basis of use and Make Matrices," Economic Working Papers at Centro de Estudios Andaluces E2004/14, Centro de Estudios Andaluces. [Downloadable!]
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