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The Choice Of Model In The Construction Of Industry Coefficients Matrices

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  • Jose Rueda-Cantuche
  • Thijs Ten Raa

Abstract

Kop Jansen and ten Raa's (1990) characterization of product-by-product input-output tables was adopted by the United Nations (1993). Recent OECD and several EU funded projects, however, used industry-by-industry tables, which raises comparable issues concerning their construction. We show how their two main construction models are instances of the transfer principle, with alternative assumptions on the variation of input-output coefficients across product markets. We augment the theory by formulating desirable properties for industry tables and investigate the so-called fixed product and fixed industry sales structure models, which are used by statistical institutes. The fixed industry sales structure model is shown to be superior from an axiomatic point of view.

Suggested Citation

  • Jose Rueda-Cantuche & Thijs Ten Raa, 2009. "The Choice Of Model In The Construction Of Industry Coefficients Matrices," Economic Systems Research, Taylor & Francis Journals, vol. 21(4), pages 363-376.
  • Handle: RePEc:taf:ecsysr:v:21:y:2009:i:4:p:363-376
    DOI: 10.1080/09535310903208344
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    1. Pieter Kop Jansen & Thijs ten Raa, 2009. "The Choice of Model in the Construction of Input–Output Coefficients Matrices," World Scientific Book Chapters, in: Input–Output Economics: Theory And Applications Featuring Asian Economies, chapter 4, pages 47-66, World Scientific Publishing Co. Pte. Ltd..
    2. Thijs ten Raa & José Manuel Rueda-Cantuche, 2009. "A Generalized Expression for the Commodity and the Industry Technology Models in Input–Output Analysis," World Scientific Book Chapters, in: Input–Output Economics: Theory And Applications Featuring Asian Economies, chapter 7, pages 103-109, World Scientific Publishing Co. Pte. Ltd..
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    Cited by:

    1. Soo Huey Teh & Thomas Wiedmann, 2018. "Decomposition of integrated hybrid life cycle inventories by origin and final-stage inputs," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 7(1), pages 1-15, December.
    2. Gheorghe Zaman & Marius Surugiu & Camelia Surugiu, 2010. "Time-Stability Of The Coefficients: An Input-Output Analysis On Romania Case," Analele Stiintifice ale Universitatii "Alexandru Ioan Cuza" din Iasi - Stiinte Economice (1954-2015), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 57, pages 483-503, november.
    3. Surugiu, Marius-Răzvan & Surugiu, Camelia, 2010. "Comparative structural approaches regarding relevant indicators of Input-Output analysis at macro and sectoral level: a case study of some European Union countries," MPRA Paper 23772, University Library of Munich, Germany, revised 25 Oct 2010.
    4. 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.
    5. Rueda-Cantuche, José M. & Amores, Antonio F., 2010. "Consistent and unbiased carbon dioxide emission multipliers: Performance of Danish emission reductions via external trade," Ecological Economics, Elsevier, vol. 69(5), pages 988-998, March.
    6. Gheorghe Zaman & Valentina Vasile & Marius Surugiu & Camelia Surugiu, 2010. "Tourism and Economic Development in Romania: Input-Output Analysis Perspective," Romanian Journal of Economics, Institute of National Economy, vol. 31(2(40)), pages 5-37, December.
    7. Garbellini, Nadia & Wirkierman, Ariel Luis, 2014. "Blocks and circularity in labour requirements: An interplay between clusters and subsystems in the EU," Structural Change and Economic Dynamics, Elsevier, vol. 28(C), pages 60-74.
    8. Reinout Heijungs & Arjan Koning, 2019. "Analyzing the effects of the choice of model in the context of marginal changes in final demand," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 8(1), pages 1-22, December.
    9. 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

    Keywords

    Input-output tables; Axiomatic approach; Industry tables;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • D - Microeconomics

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