An Alternative Treatment of Secondary Products in Input-Output Analysis

Authors:
  • DCDebesh Chakraborty
    Debesh Chakraborty
  • JSJ. Anthony Small
    J. Anthony Small
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Abstract
The United Nations System of National Accounts includes an input or "use" table U = (u"i"j) of commodities i consumed by industries j and an output or "make" table V = (v"ij") of industries producing commodities j. This paper is on the construction of an input-output or "requirements" table A = (@?"i"j) of commodities i for commodities j. The established constructs are criticised. The current favourite, the industry technology model, is rejected on the ground that the choice of base year prices affects the results in more than a scaling fashion. The paper presents an alternative to the existing constructs which cancels out the shortcomings and amounts to a rich representation of technology.