IDEAS home Printed from https://ideas.repec.org/a/spr/jecstr/v2y2013i1p1-1410.1186-2193-2409-2-5.html
   My bibliography  Save this article

The Problem of Negatives Generated by the Commodity Technology Model in Input–Output Analysis: A Review of the Solutions

Author

Listed:
  • Thijs ten Raa
  • José Rueda-Cantuche

Abstract

Many economic models (e.g., computable general equilibrium models, econometric input–output models) revolve around a matrix of technical coefficients. However, these matrices can be estimated only once every 5 years as long as they are calculated from input–output tables and these are only published on a 5-year basis. Alternatively, use and make (or supply) tables are being regularly published on a yearly basis. However, they need to be converted into input–output tables as a previous step to form the matrix of technical coefficients. In doing so, this paper aims to shed light on the construction process of input–output tables and to guide economic modelers in making a decision on the way to make such conversion and how to deal with the subsequent problems, particularly with negative technical coefficients. JEL Classification: C67, D57. Copyright T. ten Raa, J.M. Rueda-Cantuche; licensee Springer 2013

Suggested Citation

  • Thijs ten Raa & José Rueda-Cantuche, 2013. "The Problem of Negatives Generated by the Commodity Technology Model in Input–Output Analysis: A Review of the Solutions," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 2(1), pages 1-14, December.
    • Handle: RePEc:spr:jecstr:v:2:y:2013:i:1:p:1-14:10.1186/2193-2409-2-5
    DOI: 10.1186/2193-2409-2-5
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1186/2193-2409-2-5
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1186/2193-2409-2-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. ten Raa, Thijs & van der Ploeg, Rick, 1989. "A statistical approach to the problem of negatives in input-output analysis," Economic Modelling, Elsevier, vol. 6(1), pages 2-19, January.
    2. Thijs ten Raa & José Manuel Rueda-Cantuche, 2009. "A Generalized Expression for the Commodity and the Industry Technology Models in Input–Output Analysis," World Scientific Book Chapters, in: Input–Output Economics: Theory And Applications Featuring Asian Economies, chapter 7, pages 103-109, World Scientific Publishing Co. Pte. Ltd..
    3. Steenge, Albert E., 1990. "The commodity technology revisited : Theoretical basis and an application to error location in the make-use framework," Economic Modelling, Elsevier, vol. 7(4), pages 376-387, October.
    4. Louis De Mesnard, 2004. "Understanding the Shortcomings of Commodity‐based Technology in Input–Output Models: an Economic‐Circuit Approach," Journal of Regional Science, Wiley Blackwell, vol. 44(1), pages 125-141, February.
    5. 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..
    6. Joe Mattey, 1993. "Evidence on IO Technology Assumptions From the Longitudinal Research Database," Working Papers 93-8, Center for Economic Studies, U.S. Census Bureau.
    7. Joe Mattey & Thijs ten Raa, 2009. "Primary Versus Secondary Production Techniques in U.S. Manufacturing," World Scientific Book Chapters, in: Input–Output Economics: Theory And Applications Featuring Asian Economies, chapter 16, pages 285-305, World Scientific Publishing Co. Pte. Ltd..
    8. José M. Rueda-Cantuche & Thijs ten Raa, 2021. "The Choice of Model in the Construction of Industry Coefficients Matrices," World Scientific Book Chapters, in: Efficiency and Input-Output Analyses Theory and Applications, chapter 16, pages 271-287, World Scientific Publishing Co. Pte. Ltd..
    9. repec:bla:revinw:v:43:y:1997:i:4:p:449-64 is not listed on IDEAS
    10. J. Harvey Edmonston, 1952. "A Treatment of Multiple-Process Industries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 66(4), pages 557-571.
    11. Clopper Almon, 2000. "Product-to-Product Tables via Product-Technology with No Negative Flows," Economic Systems Research, Taylor & Francis Journals, vol. 12(1), pages 27-43.
    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. Valeria Ferreira & Laia Pié & Antonio Terceño, 2020. "The Role of the Foreign Sector in the Spanish Bioeconomy: Two Approaches Based on SAM Linear Models," IJERPH, MDPI, vol. 17(24), pages 1-25, December.
    2. Maria Teresa Alvarez-Martinez & Montserrat Lopez-Cobo, 2016. "Social Accounting Matrices for the EU-27 in 2010. Building a new database for RHOMOLO," JRC Research Reports JRC101673, Joint Research Centre.
    3. Schwärzler, Marion Cornelia & Kronenberg, Tobias, 2016. "Methodology of the National Health Account for Germany - Database, compilation and results," MPRA Paper 73561, University Library of Munich, Germany.

    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. George Soklis, 2009. "The Conversion of the Supply and Use Tables to Symmetric Input-Output Tables: A Critical Review," Bulletin of Political Economy, Bulletin of Political Economy, vol. 3(1), pages 51-70, June.
    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. 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.
    4. 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.
    5. Brugt Kazemier & Carlo H. Driesen & Erik Hoogbruin, 2012. "From Input--Output Tables To Supply-And-Use Tables," Economic Systems Research, Taylor & Francis Journals, vol. 24(3), pages 319-327, December.
    6. 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.
    7. Gerd Ahlert, 2014. "Neuere Anwendungsfelder der Input-Output-Analyse – Tagungsband – Beiträge zum Input-Output-Workshop 2014 in Osnabrück," GWS Research Report Series 14-2, GWS - Institute of Economic Structures Research.
    8. 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.
    9. Rueda-Cantuche, José M. & Amores, Antonio F., 2010. "Consistent and unbiased carbon dioxide emission multipliers: Performance of Danish emission reductions via external trade," Ecological Economics, Elsevier, vol. 69(5), pages 988-998, March.
    10. José M. Rueda-Cantuche & Thijs ten Raa, 2021. "The Choice of Model in the Construction of Industry Coefficients Matrices," World Scientific Book Chapters, in: Efficiency and Input-Output Analyses Theory and Applications, chapter 16, pages 271-287, World Scientific Publishing Co. Pte. Ltd..
    11. Reinout Heijungs & Arjan Koning, 2019. "Analyzing the effects of the choice of model in the context of marginal changes in final demand," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 8(1), pages 1-22, December.
    12. Rodrigues, João F.D. & Rueda-Cantuche, José M., 2013. "A two-stage econometric method for the estimation of carbon multipliers with rectangular supply and use tables," Ecological Economics, Elsevier, vol. 95(C), pages 206-212.
    13. 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.
    14. Tukker, Arnold & Poliakov, Evgueni & Heijungs, Reinout & Hawkins, Troy & Neuwahl, Frederik & Rueda-Cantuche, José M. & Giljum, Stefan & Moll, Stephan & Oosterhaven, Jan & Bouwmeester, Maaike, 2009. "Towards a global multi-regional environmentally extended input-output database," Ecological Economics, Elsevier, vol. 68(7), pages 1928-1937, May.
    15. José Manuel Rueda-Cantuche & Nuno Sousa & Valeria Andreoni & Iñaki Arto, 2013. "The Single Market as an Engine for Employment through External Trade," Journal of Common Market Studies, Wiley Blackwell, vol. 51(5), pages 931-947, September.
    16. Chris Bachmann & Matthew J. Roorda & Chris Kennedy, 2015. "Developing A Multi-Scale Multi-Region Input-Output Model," Economic Systems Research, Taylor & Francis Journals, vol. 27(2), pages 172-193, June.
    17. Umed Temurshoev, 2015. "Uncertainty treatment in input-output analysis," Working Papers 2015-004, Universidad Loyola Andalucía, Department of Economics.
    18. van Wijnbergen, Sweder, 1992. "Trade Reform, Policy Uncertainty, and the Current Account: A Non-Expected-Utility Approach," American Economic Review, American Economic Association, vol. 82(3), pages 626-633, June.
    19. Suh, Sangwon, 2004. "Functions, commodities and environmental impacts in an ecological-economic model," Ecological Economics, Elsevier, vol. 48(4), pages 451-467, April.
    20. Cansino Muñoz-Repiso, José Manuel & Cardenete Flores, M.Alejandro & Ordóñez Ríos, Manuel & Román Collado, Rocío, 2013. "Análisis de sectores clave de la economía española a partir de la Matriz de Contabilidad Social de España 2007/Key Sectors Analysis of the Spanish Economy Using a Social Accounting Matrix for 2007," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 31, pages 621-654, Septiembr.

    More about this item

    Keywords

    Input–output analysis; Technical coefficients; Use and make tables; Input–output modeling;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • D - Microeconomics

    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:spr:jecstr:v:2:y:2013:i:1:p:1-14:10.1186/2193-2409-2-5. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.