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The Choice of Model in the Construction of Input-Output Coefficients Matrices

Pieter Kop Jansen and Thijs Ten Raa
International Economic Review
Vol. 31, No. 1 (Feb., 1990), pp. 213-227
DOI: 10.2307/2526639
Stable URL: http://www.jstor.org/stable/2526639
Page Count: 15
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The Choice of Model in the Construction of Input-Output Coefficients Matrices
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Abstract

The construction of input-output coefficients on the basis of flow data is complicated by the presence of secondary outputs. Seven methods to deal with this problem coexist. For example, U.S. input-output requirement tables are based on the so-called industry technology model, Japan adopts the so-called Stone method, while West-German tables are based on the so-called commodity technology model. This paper settles the issue on the ground of theory. It postulates invariance and balance axioms and proceeds to characterize one of the methods to construct input-output coefficients. The commodity technology model is singled out.

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