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The problem of negatives in input-output analysis: a review of the solutions

Author

Listed:
  • Thijs ten Raa

    () (Universidad de Tilburg)

  • José M. Rueda-Cantuche

    () (Universidad Pablo de Olavide)

Abstract

The main models to construct technical coefficients are the industry technology model and the commodity technology model. The former yields nonnegative coefficients and the latter fulfills nice theoretical properties, such as price invariance. Although the models are very different, this paper presents a flexible formula that encompasses both of them. Various solutions to the problem of negatives of the commodity technology model-including replacements by industry technology based coefficients-are reviewed in our framework.

Suggested Citation

  • Thijs ten Raa & José M. Rueda-Cantuche, 2005. "The problem of negatives in input-output analysis: a review of the solutions," Economic Working Papers at Centro de Estudios Andaluces E2005/07, Centro de Estudios Andaluces.
  • Handle: RePEc:cea:doctra:e2005_07
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    File URL: http://public.centrodeestudiosandaluces.es/pdfs/E200507.pdf
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    References listed on IDEAS

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    1. Thijs ten Raa & José Manuel Rueda Cantuche, 2004. "How to Estimate Unbiased and Consistent input-output Multipliers on the Basis of use and Make Matrices," Economic Working Papers at Centro de Estudios Andaluces E2004/14, Centro de Estudios Andaluces.
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    Cited by:

    1. T Mariolis & G Soklis, 2010. "Additive Labour Values and Prices: Evidence from the Supply and Use Tables of the French, German and Greek Economies," Economic Issues Journal Articles, Economic Issues, vol. 15(2), pages 87-107, September.
    2. 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.

    More about this item

    Keywords

    Input-output analysis; technical coefficients; use and make matrices;

    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

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