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Testing Assumptions Made in the Construction of Input-Output Tables

José Rueda-Cantuche and Thijs ten Raa

Chapter 17 in Efficiency and Input-Output Analyses:Theory and Applications, 2021, pp 289-318 from World Scientific Publishing Co. Pte. Ltd.

Abstract: Product input-output (IO) tables are mainly constructed on the basis of product and/or industry technology assumptions. The choice is not trivial and deserves empirical analysis using input and output data at the level of establishments. This paper offers input-output compilers econometric tests to facilitate the construction of tailored hybrid technology based product IO tables. We provide weighted likelihood ratios of the product and industry technology assumptions. Although the proposed econometric tests are aimed to be used ex-ante, we construct four variants of hybrid technology based product IO tables using establishment data from Andalusia (Spain) and contrast them to the official product IO table and the pure product and industry technology based tables. Our econometric tests are not valid for industry IO tables.

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: TESTING ASSUMPTIONS MADE IN THE CONSTRUCTION OF INPUT--OUTPUT TABLES (2013) Downloads
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