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Measuring structural change in the I‐O production function by biproportional methods: A theorem of price invariance

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  • Louis de Mesnard

Abstract

. This research note demonstrates the advantage of biproportional projection over the ordinary (proportional) method of technical coefficients in input‐output analysis: the former is insensitive to price changes, the latter is not so. Consequently, structural change can generally be measured using the biproportional filter on tables in current prices instead of inflation‐adjusted matrices, without changing anything in the result. This may be useful when price information and inflation‐adjusted matrices are unavailable. The result can be applied to matrix updating.

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  • Louis de Mesnard, 2006. "Measuring structural change in the I‐O production function by biproportional methods: A theorem of price invariance," Papers in Regional Science, Wiley Blackwell, vol. 85(3), pages 459-469, August.
    • Handle: RePEc:bla:presci:v:85:y:2006:i:3:p:459-469
    DOI: 10.1111/j.1435-5957.2006.000060.x
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    1. Louis de Mesnard, 1990. "Dynamique de la structure industrielle française," Post-Print hal-00383966, HAL.
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    Cited by:

    1. Gerard Keogh & Patrick Quill, 2009. "The construction and analysis of a consistent set of input–output tables for the Irish economy," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 172(4), pages 771-788, October.

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