Advances in the Construction of Input-Output Tables
Martins, Eduardo Borges
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https://hdl.handle.net/2142/72418
Description
Title
Advances in the Construction of Input-Output Tables
Author(s)
Martins, Eduardo Borges
Issue Date
1993
Doctoral Committee Chair(s)
Hewings, Geoffrey J.D.
Department of Study
Economics
Discipline
Economics
Degree Granting Institution
University of Illinois at Urbana-Champaign
Degree Name
Ph.D.
Degree Level
Dissertation
Keyword(s)
Economics, General
Urban and Regional Planning
Abstract
This dissertation presented an alternative method for use in the construction of hybrid regional input-output tables, based primarily on individual returns from the Census of Manufactures. Using this method, input-output tables can be completed at a fraction of the cost and time involved in the completion of a full survey table. Tables for different regions can be easily constructed, using consistent accounting schemes and data sources, thus facilitating comparative analysis of regional economies.
Special attention was paid to secondary production, a problem often ignored by input-output analysts. A new method to handle secondary production was presented. The method reallocates the amount of secondary production and its associated inputs, on an establishment basis, based on the assumption that the input structure for any given commodity is determined not by the industry in which the commodity was produced, but by the commodity itself--the commodity-based technology assumption. A biproportional adjustment technique was used to perform the reallocations.
An empirical study of secondary production in Illinois manufacturing indicated it played a significant role, thus increasing the risk of obtaining potentially inaccurate technical coefficients if this secondary production is mishandled. To test this hypothesis, input-output tables based on different assumptions about secondary production were constructed, and several tests of cell by cell accuracy were performed, both for the tables as a whole and on an industry by industry basis. The tables were found to be significantly different, thus indicating that secondary production--and the way it is handled--can have a significant impact on the technical coefficients.
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