Comparing structural decomposition analysis and index
To analyze and understand historical changes in economic, environmental, employment or other socio-economic indicators, it is useful to assess the driving forces or determinants that underlie these changes. Two techniques for decomposing indicator changes at the sector level are structural decomposition analysis (SDA) and index decomposition analysis (IDA). For example, SDA and IDA have been used to analyze changes in indicators such as energy use, CO2-emissions, labor demand and value added. The changes in these variables are decomposed into determinants such as technological, demand, and structural effects. SDA uses information from input-output tables while IDA uses aggregate data at the sector-level. The two methods have developed quite independently, which has resulted in each method being characterized by specific, unique techniques and approaches. This paper has three aims. First, the similarities and differences between the two approaches are summarized. Second, the possibility of transferring specific techniques and indices is explored. Finally, a numerical example is used to illustrate differences between the two approaches.
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- Erik Dietzenbacher & Alex R. Hoen & Bart Los, 2000. "Labor Productivity in Western Europe 1975-1985: An Intercountry, Interindustry Analysis," Journal of Regional Science, Wiley Blackwell, vol. 40(3), pages 425-452.
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- Ang, B. W. & Lee, P. W., 1996. "Decomposition of industrial energy consumption: The energy coefficient approach," Energy Economics, Elsevier, vol. 18(1-2), pages 129-143, April.
- Rutger Hoekstra & Jeroen van den Bergh, 2002. "Structural Decomposition Analysis of Physical Flows in the Economy," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 23(3), pages 357-378, November.
- B. W. Ang & Ki-Hong Choi, 1997. "Decomposition of Aggregate Energy and Gas Emission Intensities for Industry: A Refined Divisia Index Method," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 59-73.
- Sun, J. W., 1998. "Changes in energy consumption and energy intensity: A complete decomposition model," Energy Economics, Elsevier, vol. 20(1), pages 85-100, February.
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