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An Alternative Treatment of Secondary Products in Input-Output Analysis: Frustration

Thijs ten Raa
The Review of Economics and Statistics
Vol. 70, No. 3 (Aug., 1988), pp. 535-538
Published by: The MIT Press
DOI: 10.2307/1926797
Stable URL: http://www.jstor.org/stable/1926797
Page Count: 4
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An Alternative Treatment of Secondary Products in Input-Output Analysis: Frustration
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Abstract

Ten Raa, Chakraborty and Small (1984) rule out industry technology based input-output coefficients in favor of a construct based on the commodity technology model. The latter, however, produces negative coefficients. This note shows that the negatives cannot be ascribed to errors of measurement. The very framework of deriving unique technical coefficients matrices from the black-box of a single pair of input and output flows must be abandoned.

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