IDEAS home Printed from https://ideas.repec.org/p/wiw/wiwrsa/ersa05p282.html
   My bibliography  Save this paper

Output and Employment Input-Output Multipliers on the basis of Use and Make Matrices

Author

Listed:
  • Thijs Ten Raa
  • José Manuel Rueda-Cantuche

Abstract

In the literature, the construction of technical coefficients is linked to flow data (use and make matrices), but stochastics are imposed on the coefficients when multipliers are calculated, by means of the Leontief inverse. Due the nonlinearity of this operation, the multiplier estimates are biased (it is generally argued that the Leontief inverse underestimates input-output multipliers). By going back to the flow data, this paper provides unbiased and consistent employment and output multipliers input-output estimates for the Andalusian economy. Rectangular use and make matrices are accommodated and technical coefficients, the Leontief inverse, and associated problems (such as negative coefficients) are circumvented.

Suggested Citation

  • 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.
    • Handle: RePEc:wiw:wiwrsa:ersa05p282
    as

    Download full text from publisher

    File URL: https://www-sre.wu.ac.at/ersa/ersaconfs/ersa05/papers/282.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Pieter Kop Jansen & Thijs ten Raa, 2009. "The Choice of Model in the Construction of Input–Output Coefficients Matrices," World Scientific Book Chapters, in: Input–Output Economics: Theory And Applications Featuring Asian Economies, chapter 4, pages 47-66, World Scientific Publishing Co. Pte. Ltd..
    2. 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..
    3. repec:bla:revinw:v:43:y:1997:i:4:p:449-64 is not listed on IDEAS
    4. 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.
    5. Simonovits, A, 1975. "A Note on the Underestimation and Overestimation of the Leontief Inverse," Econometrica, Econometric Society, vol. 43(3), pages 493-498, May.
    6. Viet, Vu Quang, 1994. "Practices in input-output table compilation," Regional Science and Urban Economics, Elsevier, vol. 24(1), pages 27-54, February.
    7. Roland-Holst, David W, 1989. "Bias and Stability of Multiplier Estimates," The Review of Economics and Statistics, MIT Press, vol. 71(4), pages 718-721, November.
    Full references (including those not matched with items on IDEAS)

    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. 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..
    2. 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.
    3. Umed Temurshoev, 2015. "Uncertainty treatment in input-output analysis," Working Papers 2015-004, Universidad Loyola Andalucía, Department of Economics.
    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. 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.
    6. 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.
    7. Lars Bohlin & Lars Widell, 2006. "Estimation of commodity-by-commodity input-output matrices," Economic Systems Research, Taylor & Francis Journals, vol. 18(2), pages 205-215.
    8. 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.
    9. Silvia Bartolucci & Fabio Caccioli & Francesco Caravelli & Pierpaolo Vivo, 2020. "Upstreamness and downstreamness in input-output analysis from local and aggregate information," Papers 2009.06350, arXiv.org, revised Feb 2024.
    10. 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.
    11. Eivind Lekve Bjelle & Johannes Többen & Konstantin Stadler & Thomas Kastner & Michaela C. Theurl & Karl-Heinz Erb & Kjartan-Steen Olsen & Kirsten S. Wiebe & Richard Wood, 2020. "Adding country resolution to EXIOBASE: impacts on land use embodied in trade," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-25, December.
    12. Suh, Sangwon, 2004. "Functions, commodities and environmental impacts in an ecological-economic model," Ecological Economics, Elsevier, vol. 48(4), pages 451-467, April.
    13. Elio Londero, 1999. "Secondary Products, By-products and the Commodity Technology Assumption," Economic Systems Research, Taylor & Francis Journals, vol. 11(2), pages 195-203.
    14. 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.
    15. Guilhoto, Joaquim José Martins & Conceição, Pedro H.Z. da & Crocomo, Francisco C., 1996. "Estruturas de produção, consumo, e distribuição de renda na economia brasileira: 1975 e 1980 comparados [Production, consumption and income distribution structures in Brazilian economy: 1975 and 19," MPRA Paper 54749, University Library of Munich, Germany.
    16. Garry Mcdonald, 2010. "A didactic Input-Output model for territorial ecology analyses," Working Papers hal-00911640, HAL.
    17. Thijs ten Raa & Pierre Mohnen, 2009. "The Location of Comparative Advantages on the Basis of Fundamentals Only," World Scientific Book Chapters, in: Input–Output Economics: Theory And Applications Featuring Asian Economies, chapter 23, pages 425-446, World Scientific Publishing Co. Pte. Ltd..
    18. Aroche-Reyes, Fidel & García Muñiz, Ana Salomé, 2012. "Modelling economic structures from a Qualitative Input-Output Perspective: Greece in 2005 and 2010," MPRA Paper 44415, University Library of Munich, Germany.
    19. Ramos, Carmen & García, Ana Salomé & Moreno, Blanca & Díaz, Guzmán, 2019. "Small-scale renewable power technologies are an alternative to reach a sustainable economic growth: Evidence from Spain," Energy, Elsevier, vol. 167(C), pages 13-25.
    20. Thijs ten Raa & Pieter Kop Jansen, 1998. "Bias and Sensitivity of Multipliers," Economic Systems Research, Taylor & Francis Journals, vol. 10(3), pages 275-284.

    More about this item

    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:wiw:wiwrsa:ersa05p282. 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: Gunther Maier (email available below). General contact details of provider: http://www.ersa.org .

    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.