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The Choice of Model in the Construction of Industry Coefficients Matrices

José Rueda-Cantuche and Thijs ten Raa

Chapter 16 in Efficiency and Input-Output Analyses:Theory and Applications, 2021, pp 271-287 from World Scientific Publishing Co. Pte. Ltd.

Abstract: Kop Jansen and ten Raa’s (1990) characterization of input-output product tables were adopted by the United Nations (1993) but recent frequent OECD publications and several EU funded projects in input-output analysis pitch product against industry tables and raise the issue of construction for the latter. We show how the main models are instances of the transfer principle, with alternative assumptions on the variation of input-output coefficients across product markets. We augment the theory by formulating desirable properties for industry tables and investigate the so-called fixed product and fixed industry sales structure models, which are used by statistical institutes. The fixed industry sales structure model is shown to be superior from an axiomatic point of view.

Keywords: Efficiency; Input-Output; Benchmarking; Performance Measurement; TFP; Environmental Policy Analysis; Mark-ups; Consumer Surplus; CES Demand; Linkages; Heckscher-Ohlin Trade Flows; Leontief (search for similar items in EconPapers)
JEL-codes: C67 D O12 (search for similar items in EconPapers)
Date: 2021
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Journal Article: THE CHOICE OF MODEL IN THE CONSTRUCTION OF INDUSTRY COEFFICIENTS MATRICES (2009) Downloads
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