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Expanding Extractions

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  • Erik Dietzenbacher
  • Michael L. Lahr

Abstract

In this paper, we generalize hypothetical extraction techniques. We suggest that the effect of certain economic phenomena can be measured by removing them from an input-output (I-O) table and by rebalancing the set of I-O accounts. The difference between the two sets of accounts yields the phenomenon's effect (or importance). We suggest that the approach can be used to measure the effect of changes in intermediate output, which are otherwise not easily rationalized within a Leontief framework. Of course, it can also be used to estimate the possible effects of the shutdown of a particular establishment or other identifiable segment of an economy. We demonstrate some properties and potential of the approach using the annual 2006 US I-O accounts.

Suggested Citation

  • Erik Dietzenbacher & Michael L. Lahr, 2013. "Expanding Extractions," Economic Systems Research, Taylor & Francis Journals, vol. 25(3), pages 341-360, September.
    • Handle: RePEc:taf:ecsysr:v:25:y:2013:i:3:p:341-360
    DOI: 10.1080/09535314.2013.774266
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