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The Choice of Model in the Construction of Input-Output Coefficients Matrices

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  • Jansen, Pieter Kop
  • ten Raa, Thijs

Abstract

The construction of input-output coefficients on the basis of flow data is complicated by the presence of secondary outputs. Seven methods to deal with this problem coexist. For example, U.S. input-output requirement tables are based on the so-called industry technology model; Japan adopts the so-called Stone method; while West German tables are based on the so-called commodity technology model. This paper settles the issue on the ground of theory. It postulates invariance and balance axioms, and proceeds to characterize one of the methods to construct input-output coefficients. The commodity technology model is singled out. Copyright 1990 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

Suggested Citation

  • Jansen, Pieter Kop & ten Raa, Thijs, 1990. "The Choice of Model in the Construction of Input-Output Coefficients Matrices," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 31(1), pages 213-227, February.
  • Handle: RePEc:ier:iecrev:v:31:y:1990:i:1:p:213-27
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    References listed on IDEAS

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    1. Fukui, Yukio & Seneta, E., 1985. "A theoretical approach to the conventional treatment of joint product in input-output tables," Economics Letters, Elsevier, vol. 18(2-3), pages 175-179.
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    Cited by:

    1. Ten Raa, T. & Wolff, E.N., 1996. "Outsourcing of services and the productivity recovery in U.S. manufacturing in the 1980s," Other publications TiSEM 6c84d041-e198-4082-9ca5-9, Tilburg University, School of Economics and Management.
    2. Shigemi Kagawa & Hajime Inamura & Yuichi Moriguchi, 2002. "The Invisible Multipliers of Joint-products," Economic Systems Research, Taylor & Francis Journals, vol. 14(2), pages 185-203, June.
    3. Thijs ten Raa & Pierre Mohnen, 2009. "The Location of Comparative Advantages on the Basis of Fundamentals Only," World Scientific Book Chapters, in: Input–Output Economics: Theory And Applications Featuring Asian Economies, chapter 23, pages 425-446, World Scientific Publishing Co. Pte. Ltd..
    4. Willenbockel, Dirk, 2007. "The Impact of China's Import Demand Growth on Sectoral Specialization in Brazil: A CGE Assessment," MPRA Paper 6200, University Library of Munich, Germany.
    5. MESNARD, Louis de, 2008. "On the impossibility of calculating the product technology in the Supply-Use model," LEG - Document de travail - Economie 2008-06, LEG, Laboratoire d'Economie et de Gestion, CNRS, Université de Bourgogne.
    6. Edward N. Wolff, 2011. "Spillovers, Linkages, and Productivity Growth in the US Economy, 1958 to 2007," NBER Working Papers 16864, National Bureau of Economic Research, Inc.
    7. Elio Londero, 1999. "Secondary Products, By-products and the Commodity Technology Assumption," Economic Systems Research, Taylor & Francis Journals, vol. 11(2), pages 195-203.
    8. Rod B. McNaughton & Brian Paul Cozzarin, 2014. "Inter-organizational linkages and resource dependence," Cogent Economics & Finance, Taylor & Francis Journals, vol. 2(1), pages 1-18, December.
    9. Thijs Ten Raa & José Manuel Rueda-Cantuche, 2005. "Output and Employment Input-Output Multipliers on the basis of Use and Make Matrices," ERSA conference papers ersa05p282, European Regional Science Association.
    10. José M. Rueda-Cantuche & Thijs ten Raa, 2021. "The Choice of Model in the Construction of Industry Coefficients Matrices," World Scientific Book Chapters, in: Efficiency and Input-Output Analyses Theory and Applications, chapter 16, pages 271-287, World Scientific Publishing Co. Pte. Ltd..
    11. Silvia Bartolucci & Fabio Caccioli & Francesco Caravelli & Pierpaolo Vivo, 2020. "Inversion-free Leontief inverse: statistical regularities in input-output analysis from partial information," Papers 2009.06350, arXiv.org, revised Nov 2020.
    12. José Manuel Rueda-Cantuche & Nuno Sousa & Valeria Andreoni & Iñaki Arto, 2013. "The Single Market as an Engine for Employment through External Trade," Journal of Common Market Studies, Wiley Blackwell, vol. 51(5), pages 931-947, September.
    13. Giannis Karagiannis & Vangelis Tzouvelekas, 2010. "Sectoral linkages and industrial efficiency: a dilemma or a requisition in identifying development priorities?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 45(1), pages 207-233, August.
    14. McDonald, Garry W. & Forgie, Vicky E. & MacGregor, Catherine, 2006. "Treading lightly: Ecofootprints of New Zealand's ageing population," Ecological Economics, Elsevier, vol. 56(3), pages 424-439, March.
    15. Thijs ten Raa & José Manuel Rueda-Cantuche, 2009. "The Construction of Input–Output Coefficients Matrices in an Axiomatic Context: Some Further Considerations," World Scientific Book Chapters, in: Input–Output Economics: Theory And Applications Featuring Asian Economies, chapter 6, pages 77-101, World Scientific Publishing Co. Pte. Ltd..
    16. Eivind Lekve Bjelle & Johannes Többen & Konstantin Stadler & Thomas Kastner & Michaela C. Theurl & Karl-Heinz Erb & Kjartan-Steen Olsen & Kirsten S. Wiebe & Richard Wood, 2020. "Adding country resolution to EXIOBASE: impacts on land use embodied in trade," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-25, December.
    17. Brugt Kazemier & Carlo H. Driesen & Erik Hoogbruin, 2012. "From Input--Output Tables To Supply-And-Use Tables," Economic Systems Research, Taylor & Francis Journals, vol. 24(3), pages 319-327, December.
    18. T Mariolis & G Soklis, 2010. "Additive Labour Values and Prices: Evidence from the Supply and Use Tables of the French, German and Greek Economies," Economic Issues Journal Articles, Economic Issues, vol. 15(2), pages 87-107, September.
    19. 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.
    20. Ramos, Carmen & García, Ana Salomé & Moreno, Blanca & Díaz, Guzmán, 2019. "Small-scale renewable power technologies are an alternative to reach a sustainable economic growth: Evidence from Spain," Energy, Elsevier, vol. 167(C), pages 13-25.
    21. Rodrigues, João F.D. & Rueda-Cantuche, José M., 2013. "A two-stage econometric method for the estimation of carbon multipliers with rectangular supply and use tables," Ecological Economics, Elsevier, vol. 95(C), pages 206-212.

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    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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