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Neoclassical input-output analysis

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  • ten Raa, Thijs
  • Mohnen, Pierre

Abstract

The Canadian comparative advantage is determined by the maximization of foreign earnings, subject to 10 input–output relations between 29 industries and 92 commodities. Free trade would boost the mining, quarrying & oil wells, tobacco, and machinery sectors. The structure of the economy is not self-sufficient, as a necessary and sufficient price condition shows. When commodities are aggregated into the 29 sectors, the shadow prices of the programs fulfill the value equations of the input–output analysis and admit a decomposition of Canadian inefficiency in 5% X-inefficiency, 15% allocative inefficiency, and 80% international specialization mismatch.
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Suggested Citation

  • ten Raa, Thijs & Mohnen, Pierre, 1994. "Neoclassical input-output analysis," Regional Science and Urban Economics, Elsevier, vol. 24(1), pages 135-158, February.
    • Handle: RePEc:eee:regeco:v:24:y:1994:i:1:p:135-158
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    Cited by:

    1. Sofiane Ghali & Pierre Mohnen, 2002. "Restructuring And Economic Performance: The Experience Of The Tunisian Economy," CIRANO Working Papers 2002s-26, CIRANO.
    2. Harada, Tsutomu, 2015. "Structural change and economic growth with relation-specific investment," Structural Change and Economic Dynamics, Elsevier, vol. 32(C), pages 1-10.
    3. C. Oliveira & D. Coelho & C. H. Antunes, 2016. "Coupling input–output analysis with multiobjective linear programming models for the study of economy–energy–environment–social (E3S) trade-offs: a review," Annals of Operations Research, Springer, vol. 247(2), pages 471-502, December.

    More about this item

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F37 - International Economics - - International Finance - - - International Finance Forecasting and Simulation: Models and Applications
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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