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Leontief Inverse Matrix in 2 And 3 Digits

Ensar Yesilyurt () and Filiz Yesilyurt ()
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Ensar Yesilyurt: Department of Economics, Pamukkale University

Authors registered in the RePEc Author Service: Muhammet Ensar Yesilyurt ()

No 708, Working Papers from Ege University, Department of Economics

Abstract: Turkish Statistics Institution (TUIK) has formed input-output tables for various years. For example, in the years 1959, 1963, 1968, 1973, 1979, 1985, 1990 and 1998, input-output tables and, in relation to them, coefficient matrices and Leontief inverse matrices were formed. Although all these tables have been formed in 4 digits, some sectors are defined in 3 digits while others in 2 digits because they are combined. For this reason, there appears a sort of handicap for the models using the coefficients of Leontief inverse matrix as explanatory variables in applied studies. To use these coefficients in the studies in which data sets are based on 2 and 3 digits, such inaccurate methods as adding these coefficients are preferred. Therefore, forming of Leontief inverse matrices in both 2 and 3 digits is vitally important. Thus, it will be possible researchers to use these coefficients in applied studies. Depending on all the above mentioned points, the 1998 input-output tables – not coefficient matrix and inverse matrix – that have been prepared by TUIK, will firstly be transformed into 2 and 3 digits by using additive keys. Then 2- and 3-digit coefficient matrices and Leontief inverse matrix will be formed by considering these tables. By this way, backward and forward linkage relations will be determined in 2- and 3-digit frame. Besides, correct values will be formed for the models that use these coefficients as explanatory variables.

Keywords: Leontief Inverse Matrix; Input-output (search for similar items in EconPapers)
JEL-codes: C67 D57 R15 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2007-07
New Economics Papers: this item is included in nep-cwa
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http://iibf.ege.edu.tr/economics/papers/wp07-08.pdf First version, 2007 (application/pdf)

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