The Problem of Negatives Generated by the Commodity Technology Model in Input–Output Analysis: A Review of the Solutions

Thijs ten Raa and José Rueda-Cantuche

Journal of Economic Structures, 2013, vol. 2, issue 1, 1-14

Abstract: Many economic models (e.g., computable general equilibrium models, econometric input–output models) revolve around a matrix of technical coefficients. However, these matrices can be estimated only once every 5 years as long as they are calculated from input–output tables and these are only published on a 5-year basis. Alternatively, use and make (or supply) tables are being regularly published on a yearly basis. However, they need to be converted into input–output tables as a previous step to form the matrix of technical coefficients. In doing so, this paper aims to shed light on the construction process of input–output tables and to guide economic modelers in making a decision on the way to make such conversion and how to deal with the subsequent problems, particularly with negative technical coefficients. JEL Classification: C67, D57. Copyright T. ten Raa, J.M. Rueda-Cantuche; licensee Springer 2013

Keywords: Input–output analysis; Technical coefficients; Use and make tables; Input–output modeling (search for similar items in EconPapers)
Date: 2013
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Chapter: The Problem of Negatives Generated by the Commodity Technology Model in Input-Output Analysis: A Review of the Solutions (2021)
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DOI: 10.1186/2193-2409-2-5

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