The Input-Output Approach to Instrument Selection

John Shea ()

Journal of Business & Economic Statistics, 1993, vol. 11, issue 2, 145-55

Abstract: This article proposes a new method of selecting demand-shift instruments for disaggregated industries. The author us es prior information from input-output tables to identify industries whose output fluctuations are likely to function as approximately exogenous shocks for other industries. After motivating this idea theoretically, he implements the input-output approach using data from the 1977 detailed input-output study. The author conducts a systematic instrument search for over 450 U.S. manufacturing industr ies and finds over 200 industries possessing plausible instruments. He concludes with a brief application, showing how input-output instruments can be used to estimate the short-run supply curve of th e cement industry.

Date: 1993
References: Add references at CitEc
Citations: View citations in EconPapers (27)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:bes:jnlbes:v:11:y:1993:i:2:p:145-55

Ordering information: This journal article can be ordered from
http://www.amstat.org/publications/index.html

Access Statistics for this article

Journal of Business & Economic Statistics is currently edited by Jonathan H. Wright and Keisuke Hirano

More articles in Journal of Business & Economic Statistics from American Statistical Association
Bibliographic data for series maintained by Christopher F. Baum ().