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Primary Versus Secondary Production Techniques In U.S. Manufacturing

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  • Joe Mattey
  • Thijs Ten Raa

Abstract

In this paper we analyze the determinants of material inputs into individual production activities as a function of their outputs. We use observations on a large cross‐section of U.S. manufacturing plants from the Census of Manufactures, including those that make goods primary to other industries, to study differences in production techniques. We find that in most cases material requirements do not depend on whether goods are made as primary products or as secondary products. We thus elucidate support for the commodity technology model as a useful working hypothesis.

Suggested Citation

  • Joe Mattey & Thijs Ten Raa, 1997. "Primary Versus Secondary Production Techniques In U.S. Manufacturing," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 43(4), pages 449-464, December.
    • Handle: RePEc:bla:revinw:v:43:y:1997:i:4:p:449-464
    DOI: 10.1111/j.1475-4991.1997.tb00235.x
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    Cited by:

    1. José M. Rueda-Cantuche & Antonio Titos Moreno & Marisa Asensio Pardo, 2005. "A use-side trade margins matrix for the Andalusian economy," Economic Working Papers at Centro de Estudios Andaluces E2005/06, Centro de Estudios Andaluces.
    2. Thijs ten Raa & José Manuel Rueda-Cantuche, 2009. "The Construction of Input–Output Coefficients Matrices in an Axiomatic Context: Some Further Considerations," World Scientific Book Chapters, in: Input–Output Economics: Theory And Applications Featuring Asian Economies, chapter 6, pages 77-101, World Scientific Publishing Co. Pte. Ltd..
    3. Louis Mesnard, 2011. "Negatives in symmetric input–output tables: the impossible quest for the Holy Grail," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 46(2), pages 427-454, April.
    4. Thijs ten Raa & José M. Rueda-Cantuche, 2021. "The Problem of Negatives Generated by the Commodity Technology Model in Input-Output Analysis: A Review of the Solutions," World Scientific Book Chapters, in: Efficiency and Input-Output Analyses Theory and Applications, chapter 18, pages 319-338, World Scientific Publishing Co. Pte. Ltd..
    5. Xesús Pereira López & Melchor Fernández Fernández & André Carrascal Incera, 2012. "Algunas consideraciones acerca de los modelos input-output rectangulares," Documentos de trabajo - Analise Economica 0049, IDEGA - Instituto Universitario de Estudios e Desenvolvemento de Galicia.
    6. Joe P. Mattey & Steven Strongin, 1997. "Factor utilization and margins for adjusting output: evidence from manufacturing plants," Economic Review, Federal Reserve Bank of San Francisco, pages 3-17.
    7. MESNARD, Louis de, 2008. "On the impossibility of calculating the product technology in the Supply-Use model," LEG - Document de travail - Economie 2008-06, LEG, Laboratoire d'Economie et de Gestion, CNRS, Université de Bourgogne.
    8. Thijs Ten Raa & José Manuel Rueda-Cantuche, 2005. "Output and Employment Input-Output Multipliers on the basis of Use and Make Matrices," ERSA conference papers ersa05p282, European Regional Science Association.
    9. Umed Temurshoev, 2015. "Uncertainty treatment in input-output analysis," Working Papers 2015-004, Universidad Loyola Andalucía, Department of Economics.

    More about this item

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F37 - International Economics - - International Finance - - - International Finance Forecasting and Simulation: Models and Applications
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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