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4 - Organization of Basic Data for Input–Output Models

Published online by Cambridge University Press:  06 January 2022

Ronald E. Miller  and
Peter D. Blair
Ronald E. Miller
Affiliation:
University of Pennsylvania
Peter D. Blair
Affiliation:
George Mason University
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Summary

Chapter 4 deals with the construction of input–output tables from standardized conventions of national economic accounts, such as the widely used System of National Accounts (SNA) promoted by the United Nations, including a basic introduction to the so-called commodity-by-industry or supply-use input–output framework developed in additional detail in Chapter 5. A simplified SNA is derived from fundamental economic concepts of the circular flow of income and expenditure, that is, as additional sectoral details are defined for businesses, households, government, foreign trade, and capital formation, ultimately result in the basic commodity-by-industry formulation of input–output accounts. The process is illustrated with the US input–output model and some of the key traditional conventions widely applied for such considerations as secondary production (multiple products or commodities produced by a business), competitive imports (commodities that are also produced domestically) versus non-competitive imports (commodities not produced domestically), trade and transportation margins on interindustry transactions, or the treatment of scrap and secondhand goods.

Keywords

System of National Accountscircular flowcommodity-by-industrysupply tableuse tablemake matrixsecondary productioncompetitive importsnon-competitive imports
Type
Chapter
Information
Input-Output Analysis
Foundations and Extensions
 , pp. 112 - 175
Publisher: Cambridge University Press
Print publication year: 2022

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References

Supplemental Appendix SA4.1, located on the internet web site associated with this text (http://www.cambridge.org/millerandblair), develops two key theorems providing the basis for measures of first-order and total aggregation bias in input–output models. Also explored are these measures applied to interregional (IRIO) and multiregional (MRIO) models, known as spatial aggregation bias. These measures are applied, as examples, to historical Japanese IRIO and US MRIO models.Google Scholar

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