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The Choice of Model in the Construction of Industry Coefficients Matrices

In: Efficiency and Input-Output Analyses Theory and Applications

Author

Listed:
  • José M. Rueda-Cantuche
  • Thijs ten Raa

Abstract

Kop Jansen and ten Raa’s (1990) characterization of input-output product tables were adopted by the United Nations (1993) but recent frequent OECD publications and several EU funded projects in input-output analysis pitch product against industry tables and raise the issue of construction for the latter. We show how the main 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

  • 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..
    • Handle: RePEc:wsi:wschap:9789811233296_0016
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    1. is not listed on IDEAS
    2. Dutta, Sourish, 2022. "Supply-Use and Input-Output Tables," MPRA Paper 112353, University Library of Munich, Germany.
    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. 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.
    5. 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.
    6. Sourish Dutta, 2025. "The Anatomy of Value Creation: Input-Output Linkages, Policy Shifts, and Economic Impact in India's Mobile Phone GVC," Working Papers hal-05139502, HAL.
    7. 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.
    8. George Soklis, 2009. "The Conversion of the Supply and Use Tables to Symmetric Input-Output Tables: A Critical Review," Bulletin of Political Economy, Bulletin of Political Economy, vol. 3(1), pages 51-70, June.
    9. 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.
    10. 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.
    11. 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.
    12. repec:osf:osfxxx:4ueky_v1 is not listed on IDEAS
    13. 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.
    14. Thijs ten Raa & José M. Rueda-Cantuche, 2021. "The Problem of Negatives Generated by the Commodity Technology Model in Input-Output Analysis: A Review of the Solutions," World Scientific Book Chapters, in: Efficiency and Input-Output Analyses Theory and Applications, chapter 18, pages 319-338, World Scientific Publishing Co. Pte. Ltd..
    15. 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.

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    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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