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

Thijs ten Raa and José Rueda-Cantuche

No E2005/07, Economic Working Papers at Centro de Estudios Andaluces from Centro de Estudios Andaluces

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.

Keywords: Input-output analysis; technical coefficients; use and make matrices (search for similar items in EconPapers)
JEL-codes: C67 D57 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2005
References: Add references at CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:cea:doctra:e2005_07

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