Primary Versus Secondary Production Techniques in U.S. Manufacturing

Mattey, Joe P.; Raa, Thijs ten

doi:10.1111/j.1475-4991.1997.tb00235.x

Cited by 15 publications

(7 citation statements)

References 4 publications

(1 reference statement)

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“…The idea of this paper is to add error terms to Equations 3 and 5 and thus to consider the input-output coefficients as regression coefficients (Mattey and ten Raa, 1997).…”

Section: The Testsmentioning

confidence: 99%

Testing Assumptions Made in the Construction of Input–output Tables

Rueda‐Cantuche

Raa

2013

Economic Systems Research

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Product input-output (IO) tables are mainly constructed on the basis of product and/or industry technology assumptions. The choice is not trivial and deserves empirical analysis using input and output data at the level of establishments. This paper offers input-output compilers econometric tests to facilitate the construction of tailored hybrid technology-based product IO tables. We provide weighted likelihood ratios of the product and industry technology assumptions. Although the proposed econometric tests are aimed to be used ex ante, we construct four variants of hybrid technology-based product IO tables using establishment data from Andalusia (Spain) and contrast them to the official product IO table and the pure product and industry technology-based tables. Our econometric tests are not valid for industry IO tables.

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“…The idea of this paper is to add error terms to Equations 3 and 5 and thus to consider the input-output coefficients as regression coefficients (Mattey and ten Raa, 1997).…”

Section: The Testsmentioning

confidence: 99%

Testing Assumptions Made in the Construction of Input–output Tables

Rueda‐Cantuche

Raa

2013

Economic Systems Research

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“…The commodity technology assumption is considered theoretically superior [11,13,15,16,22,24], but agreement is not uniform. For instance, de Mesnard [6] stated that the commodity technology hypothesis has to be rejected since it breaks the linkages of commodity flows internal to the industries.…”

Section: Background Contextmentioning

confidence: 99%

“…First, some commodities are produced with different technologies [4,11,15,17,26,27]. In this case, the commodity technology assumption is not valid.…”

Section: Sources Of Negative Coefficientsmentioning

confidence: 99%

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

Raa

Rueda‐Cantuche

2013

Economic Structures

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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.

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“…The negatives are generally considered as caused by errors in the data or by the presence of different technologies or by heterogeneous classifications. As they are obviously annoying and cannot receive any satisfactory interpretation, various approaches have been proposed to eliminate them when the product-technology or the fixed-industry-sales-structure assumptions are chosen (Almon , 2000Armstrong 1975;Rainer 1989;Steenge 1990; Rainer and Richter 1992;Mattey 1993;Mattey and ten Raa 1997;Braibant 2002); for a review, see United Nations 1999; ten Raa and Rueda-Cantuche 2003; Hoekstra 2005or Eurostat 2008.…”

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confidence: 99%