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

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  • Clopper Almon

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.

Suggested Citation

  • Clopper Almon, 2000. "Product-to-Product Tables via Product-Technology with No Negative Flows," Economic Systems Research, Taylor & Francis Journals, vol. 12(1), pages 27-43.
  • Handle: RePEc:taf:ecsysr:v:12:y:2000:i:1:p:27-43 DOI: 10.1080/095353100111263
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    References listed on IDEAS

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    1. 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, pages 88-97.
    2. ten Raa, Thijs, 1988. "An Alternative Treatment of Secondary Products in Input-Output Analysis: Frustration," The Review of Economics and Statistics, MIT Press, pages 535-538.
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    Cited by:

    1. Eduardo Haddad & Vasco Silva & Alexandre Porsse & Tomaz Dentinho, 2015. "Multipliers in an Island Economy: The Case of the Azores," World Scientific Book Chapters,in: THE REGION AND TRADE New Analytical Directions, chapter 8, pages 205-226 World Scientific Publishing Co. Pte. Ltd..
    2. repec:onb:oenbwp:y:2013:i:1:b:1 is not listed on IDEAS
    3. 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.
    4. Konstantins Benkovskis & Ludmila Fadejeva & Julia Wörz, 2013. "How Important Is Total Factor Productivity for Growth in Central, Eastern and Southeastern European Countries?," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), pages 8-27.

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