IDEAS home Printed from https://ideas.repec.org/p/aub/autbar/887.11.html
   My bibliography  Save this paper

Straightening out the concept of direct and indirect input requirements

Author

Listed:
  • Ferran Sancho

Abstract

Gim & Kim (1998) proposed a generalization of Jeong (1982, 1984) reinterpretation of the Hawkins-Simon condition for macroeconomic stability to off-diagonal matrix elements. This generalization is conceptually relevant for it offers a complementary view of interindustry linkages beyond final or net output influence. The extension is completely similar to the 'total flow' idea introduced by Szyrmer (1992) or the 'output-to-output' multiplier of Miller & Blair (2009). However the practical implementation of Gim & Kim is actually faulty since it confuses the appropriate order of output normalization. We provide a new and elementary solution for the correct formalization using standard interindustry accounting concepts.

Suggested Citation

  • Ferran Sancho, 2011. "Straightening out the concept of direct and indirect input requirements," UFAE and IAE Working Papers 887.11, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    • Handle: RePEc:aub:autbar:887.11
    as

    Download full text from publisher

    File URL: http://pareto.uab.es/wp/2011/88711.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Eve Chiapello & A. Hurand, 2011. "Contribution," Post-Print hal-00681170, HAL.
    2. Gim, Ho Un & Kim, Koonchan, 1998. "The General Relation between Two Different Notions of Direct and Indirect Input Requirements," Journal of Macroeconomics, Elsevier, vol. 20(1), pages 199-208, January.
    3. Miller,Ronald E. & Blair,Peter D., 2009. "Input-Output Analysis," Cambridge Books, Cambridge University Press, number 9780521517133.
    4. Theodore Mariolis & Eleftheria Rodousaki, 2011. "Total Requirements for Gross Output and Intersectoral Linkages: A Note on Dmitriev's Contribution to the Theory of Profits ," Contributions to Political Economy, Oxford University Press, vol. 30(1), pages 67-75.
    5. Miller,Ronald E. & Blair,Peter D., 2009. "Input-Output Analysis," Cambridge Books, Cambridge University Press, number 9780521739023.
    6. Jeong, Ki-Jun, 1984. "The relation between two different notions of direct and indirect input requirements," Journal of Macroeconomics, Elsevier, vol. 6(4), pages 473-476.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ferran Sancho, 2013. "Some conceptual difficulties regarding ‘net’ multipliers," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 51(2), pages 537-552, October.
    2. Erik Dietzenbacher & Manfred Lenzen & Bart Los & Dabo Guan & Michael L. Lahr & Ferran Sancho & Sangwon Suh & Cuihong Yang, 2013. "Input--Output Analysis: The Next 25 Years," Economic Systems Research, Taylor & Francis Journals, vol. 25(4), pages 369-389, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Herwig Immervoll & Cathal O’Donoghue & Jules Linden & Denisa Sologon, 2023. "Who pays for higher carbon prices?: Illustration for Lithuania and a research agenda," OECD Social, Employment and Migration Working Papers 283, OECD Publishing.
    2. Eduardo Haddad & Juan Manuel Samaniego & Alexandre Porsse & Santiago Ochoa & Luiz Gustavo Souza, 2011. "Interregional Interdependence among Ecuadorian Provinces: An Input-Output Analysis," ERSA conference papers ersa11p836, European Regional Science Association.
    3. Afonso, António & Gomes, Pedro & Taamouti, Abderrahim, 2014. "Sovereign credit ratings, market volatility, and financial gains," Computational Statistics & Data Analysis, Elsevier, vol. 76(C), pages 20-33.
    4. Dobrescu, Emilian, 2013. "Modelling the Sectoral Structure of the Final Output," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 59-89, October.
    5. Maurizio Ciaschini & Francesca Severini, 2010. "The Economic Impact of the Green Certificate Market through the Macro Multiplier Approach," Working Papers 2010.105, Fondazione Eni Enrico Mattei.
    6. Johann Audrain & Mateo Cordier & Sylvie Faucheux & Martin O’Connor, 2013. "Écologie territoriale et indicateurs pour un développement durable de la métropole parisienne," Revue d'économie régionale et urbaine, Armand Colin, vol. 0(3), pages 523-559.
    7. Neil Foster-McGregor & Robert Stehrer & Marcel Timmer, 2013. "International Fragmentation of Production, Trade and Growth: Impacts and Prospects for EU Member States," wiiw Research Reports 387, The Vienna Institute for International Economic Studies, wiiw.
    8. Daniel Croner and Ivan Frankovic, 2018. "A Structural Decomposition Analysis of Global and National Energy Intensity Trends," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).
    9. Lach, Łukasz, 2022. "Optimization based structural decomposition analysis as a tool for supporting environmental policymaking," Energy Economics, Elsevier, vol. 115(C).
    10. Arne J. Nagengast & Robert Stehrer, 2016. "Accounting for the Differences Between Gross and Value Added Trade Balances," The World Economy, Wiley Blackwell, vol. 39(9), pages 1276-1306, September.
    11. Manuel Alejandro Cardenete & Ferran Sancho, 2012. "The Role Of Supply Constraints In Multiplier Analysis," Economic Systems Research, Taylor & Francis Journals, vol. 24(1), pages 21-34, June.
    12. Lee, Frederic, 2011. "Old controversy revisited: pricing, market structure, and competition," MPRA Paper 30490, University Library of Munich, Germany.
    13. Murray, Michael/ M J, 2011. "A critical perspective on heterodox production modeling," MPRA Paper 34255, University Library of Munich, Germany.
    14. Takuro Uehara & Mateo Cordier & Bertrand Hamaide, 2018. "Fully Dynamic Input-Output/System Dynamics Modeling for Ecological-Economic System Analysis," Post-Print hal-02862512, HAL.
    15. Faggio, Giulia & Overman, Henry, 2014. "The effect of public sector employment on local labour markets," Journal of Urban Economics, Elsevier, vol. 79(C), pages 91-107.
    16. Eduardo Amaral Haddad & Alexandre Alves Porsse & Wilson Rabahy, 2013. "Domestic Tourism and Regional Inequality in Brazil," Tourism Economics, , vol. 19(1), pages 173-186, February.
    17. José Manuel Rueda-Cantuche & Iñaki Arto & Valeria Andreoni & José M. Rueda-Cantuche, 2012. "Worldwide economic effects of disruptions in the production chain: the 2011 Japanese disasters," EcoMod2012 4088, EcoMod.
    18. Robert C. Johnson, 2018. "Measuring Global Value Chains," Annual Review of Economics, Annual Reviews, vol. 10(1), pages 207-236, August.
    19. Varela Vázquez, Pedro & Sánchez Carreira, María del Carmen & Pereira López, Xesús, 2014. "Estimación del impacto económico del sector eólico en Galicia en el periodo 2000-2010 || Estimation of the Economic Impact of the Wind Energy Sector in Galicia during 2000-2010," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 18(1), pages 18-33, December.
    20. Daria Ciriaci & Sandro Montresor & Daniela Palma, 2013. "Do KIBS make manufacturing more innovative? An empirical investigation for four European countries," JRC Working Papers on Corporate R&D and Innovation 2013-04, Joint Research Centre.

    More about this item

    Keywords

    output multipliers; input multipliers; Leontief multipliers.;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aub:autbar:887.11. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Xavier Vila (email available below). General contact details of provider: https://edirc.repec.org/data/ufuabes.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.