Multipliers, factor contents, and productivity

Thijs ten Raa

Chapter 6 in Handbook of Input–Output Analysis, 2017, pp 223-244 from Edward Elgar Publishing

Abstract: The theory underlying indirect, multiplier effects of final consumption is detailed in this chapter. The classical example is the computation of the factors of production, first and foremost labor, embodied in final products. These embodiments are determined by taking the Leontief inverse of the matrix of direct input-output coefficients. Conditions on the input-output matrix which are both necessary and sufficient for the convergence of the multiplier effects are presented. Further multiplier effects due to household consumption are incorporated. The less labor is embodied in a product of an economy, the more productive the economy is in making that product. The relationship between input-output analysis and productivity measurement is detailed. The neoclassical approach of measuring total factor productivity by measuring input reductions using fixed prices has been criticized and alternative "effective" industry productivity growth rates have been presented in the input-output literature, but the two approaches will be demonstrated to be perfectly consistent. The analysis is also shown to encompass inefficiency measures and service productivity measures.

Keywords: Economics and Finance; Environment; Urban and Regional Studies (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.elgaronline.com/view/9781783476312.00012.xml (application/pdf)
Our link check indicates that this URL is bad, the error code is: 503 Service Temporarily Unavailable

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:elg:eechap:15852_6

Ordering information: This item can be ordered from
http://www.e-elgar.com

Access Statistics for this chapter

More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Darrel McCalla ().