IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-11-00758.html
   My bibliography  Save this article

Straightening out the concept of direct and indirect input requirements

Author

Listed:
  • Ferran Sancho

    (Department of Economics)

Abstract

Gim & Kim (1998) proposed a generalization of Jeong (1982, 1984) reinterpretation of the Hawkins-Simon condition for macroeconomic stability to off-diagonal matrix elements. This generalization is conceptually relevant for it offers a complementary view of interindustry linkages beyond final or net output influence. The extension is completely similar to the ‘total flow' idea introduced by Szyrmer (1992) or the ‘output-to-output' multiplier of Miller & Blair (2009). However the practical implementation of Gim & Kim is actually faulty since it confuses the appropriate order of output normalization. We provide a new and elementary solution for the correct formalization using standard interindustry concepts. The advantage of our approach is that it unravels and clarifies the step by step actual mechanisms behind the accounting rules.

Suggested Citation

  • Ferran Sancho, 2012. "Straightening out the concept of direct and indirect input requirements," Economics Bulletin, AccessEcon, vol. 32(1), pages 502-509.
    • Handle: RePEc:ebl:ecbull:eb-11-00758
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/Pubs/EB/2012/Volume32/EB-12-V32-I1-P47.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Miller,Ronald E. & Blair,Peter D., 2009. "Input-Output Analysis," Cambridge Books, Cambridge University Press, number 9780521517133.
    2. Miller,Ronald E. & Blair,Peter D., 2009. "Input-Output Analysis," Cambridge Books, Cambridge University Press, number 9780521739023.
    3. Jeong, Ki-Jun, 1984. "The relation between two different notions of direct and indirect input requirements," Journal of Macroeconomics, Elsevier, vol. 6(4), pages 473-476.
    4. Eve Chiapello & A. Hurand, 2011. "Contribution," Post-Print hal-00681170, HAL.
    5. Theodore Mariolis & Eleftheria Rodousaki, 2011. "Total Requirements for Gross Output and Intersectoral Linkages: A Note on Dmitriev's Contribution to the Theory of Profits ," Contributions to Political Economy, Cambridge Political Economy Society, vol. 30(1), pages 67-75.
    6. Gim, Ho Un & Kim, Koonchan, 1998. "The General Relation between Two Different Notions of Direct and Indirect Input Requirements," Journal of Macroeconomics, Elsevier, vol. 20(1), pages 199-208, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. L. Dary Beltran & Manuel Alejandro Cardenete & Ferran Sancho, 2024. "A procedure to discern the embodied technological content in goods," UFAE and IAE Working Papers 976.24, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    2. Ferran Sancho, 2013. "Some conceptual difficulties regarding ‘net’ multipliers," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 51(2), pages 537-552, October.
    3. Erik Dietzenbacher & Manfred Lenzen & Bart Los & Dabo Guan & Michael L. Lahr & Ferran Sancho & Sangwon Suh & Cuihong Yang, 2013. "Input--Output Analysis: The Next 25 Years," Economic Systems Research, Taylor & Francis Journals, vol. 25(4), pages 369-389, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Afonso, António & Gomes, Pedro & Taamouti, Abderrahim, 2014. "Sovereign credit ratings, market volatility, and financial gains," Computational Statistics & Data Analysis, Elsevier, vol. 76(C), pages 20-33.
    2. Dobrescu, Emilian, 2013. "Modelling the Sectoral Structure of the Final Output," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 59-89, October.
    3. Maurizio Ciaschini & Francesca Severini, 2010. "The Economic Impact of the Green Certificate Market through the Macro Multiplier Approach," Working Papers 2010.105, Fondazione Eni Enrico Mattei.
    4. Johann Audrain & Mateo Cordier & Sylvie Faucheux & Martin O’Connor, 2013. "Écologie territoriale et indicateurs pour un développement durable de la métropole parisienne," Revue d'économie régionale et urbaine, Armand Colin, vol. 0(3), pages 523-559.
    5. Daniel Croner & Ivan Frankovic, 2018. "A Structural Decomposition Analysis of Global and NationalEnergy Intensity Trends," The Energy Journal, , vol. 39(2), pages 103-122, March.
    6. Lach, Łukasz, 2022. "Optimization based structural decomposition analysis as a tool for supporting environmental policymaking," Energy Economics, Elsevier, vol. 115(C).
    7. Arne J. Nagengast & Robert Stehrer, 2016. "Accounting for the Differences Between Gross and Value Added Trade Balances," The World Economy, Wiley Blackwell, vol. 39(9), pages 1276-1306, September.
    8. Lee, Frederic, 2011. "Old controversy revisited: pricing, market structure, and competition," MPRA Paper 30490, University Library of Munich, Germany.
    9. repec:ilo:ilowps:485511 is not listed on IDEAS
    10. Arne J. Nagengast & Robert Stehrer, 2016. "The Great Collapse in Value Added Trade," Review of International Economics, Wiley Blackwell, vol. 24(2), pages 392-421, May.
    11. Fontagné, Lionel & Santoni, Gianluca, 2021. "GVCs and the endogenous geography of RTAs," European Economic Review, Elsevier, vol. 132(C).
    12. Garry Mcdonald, 2010. "A didactic Input-Output model for territorial ecology analyses," Working Papers hal-00911640, HAL.
    13. Bustos, Paul S., 2011. "Actividades económicas en Bolivia: un análisis de encadenamiento," Revista Latinoamericana de Desarrollo Economico, Carrera de Economía de la Universidad Católica Boliviana (UCB) "San Pablo", issue 16, pages 39-56, Noviembre.
    14. Kristinn Hermannsson, 2015. "Expenditure and Displacement effects of Students in the Periphery: Impact on the Scottish Highlands and Islands," ERSA conference papers ersa15p1601, European Regional Science Association.
    15. Moretto, Antonio Carlos & Rodrigues, Rossana Lott & Sesso Filho, Umberto Antonio & Guilhoto, Joaquim José Martins & Maia, Katy, 2012. "Regiões polarizadas no Paraná: relações inter setoriais e inter regionais em 2006," MPRA Paper 46996, University Library of Munich, Germany.
    16. Usón, Sergio & Valero, Antonio & Agudelo, Andrés, 2012. "Thermoeconomics and Industrial Symbiosis. Effect of by-product integration in cost assessment," Energy, Elsevier, vol. 45(1), pages 43-51.
    17. Torre Cepeda Leonardo E. & Chapa Cantú Joana C. & González González Eva Edith, 2020. "Economic Integration Mexico-United States and Regional Performance in Mexico," Working Papers 2020-06, Banco de México.
    18. Zhang, Bo & Chen, Z.M. & Xia, X.H. & Xu, X.Y. & Chen, Y.B., 2013. "The impact of domestic trade on China's regional energy uses: A multi-regional input–output modeling," Energy Policy, Elsevier, vol. 63(C), pages 1169-1181.
    19. Eduardo A. Haddad & Juan M. G. Samaniego, Alexandre A. Porsse, Diego Ochoa, Santiago Ochoa, Luiz G. A. de Souza, 2011. "Interregional Input-Ouptut System for Ecuador, 2007: Methodology and Results," Working Papers, Department of Economics 2011_08, University of São Paulo (FEA-USP).
    20. Matías Piaggio & Vicent Alcántara Escolano & Emilio Padilla, 2012. "Economic structure and key sectors analysis of greenhouse gas emissions in Uruguay," Working Papers wpdea1204, Department of Applied Economics at Universitat Autonoma of Barcelona.
    21. Sadao, Nishimura, 2010. "Towards Analysis of Vertical Structure of Industries: a method and its application to U.S. industries," MPRA Paper 27464, University Library of Munich, Germany.

    More about this item

    Keywords

    output multipliers; input multipliers;

    JEL classification:

    • C0 - Mathematical and Quantitative Methods - - General
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-11-00758. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John P. Conley (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.