Economics at your fingertips  

Combining Input-Output (IO) analysis with Global Vector Autoregressive (GVAR) modeling: Evidence for the USA (1992-2006)

Konstantinos Konstantakis () and Panayotis Michaelides ()

MPRA Paper from University Library of Munich, Germany

Abstract: The purpose of this paper is to assess the interdependencies among the eight (8) main sectors of economic activity in the US economy, using quarterly data on output and labor fora period of fifteen years (1992-2006), just before the first signs of the global recession made their appearance. In this context, we set up a novel methodological framework which combines Input-Output (IO) analysis with state of the art Global Vector Autoregressive (GVAR) modeling. In addition, we use the IO matrices to provide a procedure in order to test for the existence of dominant sector(s) in the USA and estimate a GVAR model with dominant sector(s) and the exogenous variables of Global Credit and Global Trade acting as the transmission channels. Our results seem to suggest that the US economy has relatively limited connectivity, in terms of sectoral output and labor, among the various sectors.

Keywords: GVAR; Input Output; US sectors; Weight Matrix (search for similar items in EconPapers)
JEL-codes: C3 C6 C67 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-hme
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) original version (application/pdf)

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:

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().

Page updated 2019-10-09
Handle: RePEc:pra:mprapa:67111