Template-Type: ReDIF-Article 1.0 Author-Name: Pierre Mohnen Author-X-Name-First: Pierre Author-X-Name-Last: Mohnen Title: Introduction: Input-Output Analysis of Interindustry R&D Spillovers Abstract: As an introduction to this special issue on intersectoral R&D spillovers, I shall first explain what these spillovers are and how economists try to estimate them. I shall then describe the seven papers selected for this issue from the expanding literature on R&D spillovers, summarize their major results and suggest further avenues of research in this area. Journal: Economic Systems Research Pages: 3-8 Issue: 1 Volume: 9 Year: 1997 Keywords: R&D spillovers, X-DOI: 10.1080/09535319700000001 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319700000001 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:9:y:1997:i:1:p:3-8 Template-Type: ReDIF-Article 1.0 Author-Name: Edward Wolff Author-X-Name-First: Edward Author-X-Name-Last: Wolff Title: Spillovers, Linkages and Technical Change Abstract: Using US input-output data for the period 1958-87, I find strong evidence that industry total factor productivity (TFP) growth is significantly related to the TFP performance of the supplying sectors, with an elasticity of almost 60%. R&D intensity is also found to be a significant determinant of industry TFP growth, with an estimated return of about 10-13% and the return to embodied R&D is estimated at 43%. Direct productivity spillovers, from the technological progress made by supplying sectors, appear to be more important than spillovers from the R&D performed by suppliers. They also play a key role in explaining changes in manufacturing TFP growth over time. Changes in the contribution made by direct productivity spillovers to TFP growth account for almost half of the slowdown in TFP growth in manufacturing from 1958-67 to 1967-77, and for 20% of the TFP growth recovery in this sector from 1967-77 to 1977-87. Changes in R&D intensity and embodied R&D are relatively unimportant in explaining movements in manufacturing TFP growth over these three periods. Journal: Economic Systems Research Pages: 9-23 Issue: 1 Volume: 9 Year: 1997 Keywords: Embodied R&D, embodied total factor productivity growth, productivity, linkages, USA, X-DOI: 10.1080/09535319700000002 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319700000002 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:9:y:1997:i:1:p:9-23 Template-Type: ReDIF-Article 1.0 Author-Name: Hans van Meijl Author-X-Name-First: Hans Author-X-Name-Last: van Meijl Title: Measuring Intersectoral Spillovers: French Evidence Abstract: In this paper, we measure the effect of internal R&D and various spillover concepts on productivity growth, using a database for France that covers the period 1978-92. Three spillover concepts are distinguished: rent spillovers related to investment goods; rent spillovers related to intermediate goods; pure knowledge spillovers. When production is measured by gross output, all three spillover concepts yield positive and statistically significant coefficients. Each concept has a measurable effect on technological progress at the sectoral level. Journal: Economic Systems Research Pages: 25-46 Issue: 1 Volume: 9 Year: 1997 Keywords: R&D spillovers, patents, productivity growth, France, X-DOI: 10.1080/09535319700000003 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319700000003 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:9:y:1997:i:1:p:25-46 Template-Type: ReDIF-Article 1.0 Author-Name: Bart Verspagen Author-X-Name-First: Bart Author-X-Name-Last: Verspagen Title: Measuring Intersectoral Technology Spillovers: Estimates from the European and US Patent Office Databases Abstract: This paper presents several new methods for measuring intersectoral knowledge spillovers, and applies these methods in an analysis of productivity growth in manufacturing for a cross-country, cross-sectional sample for the 1980s. It is argued that existing methods of measuring such intersectoral knowledge spillovers are mostly aimed at measuring so-called crent spillovers'. The methods developed here are aimed at measuring knowledge spillovers—an additional aspect of the spillover process. The empirical analysis shows that there are indeed differences between these two types of spillover measure. Journal: Economic Systems Research Pages: 47-65 Issue: 1 Volume: 9 Year: 1997 Keywords: R&D spillovers, patents, productivity growth, X-DOI: 10.1080/09535319700000004 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319700000004 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:9:y:1997:i:1:p:47-65 Template-Type: ReDIF-Article 1.0 Author-Name: Synnove Vuori Author-X-Name-First: Synnove Author-X-Name-Last: Vuori Title: Interindustry Technology Flows and Productivity in Finnish Manufacturing Abstract: The paper examines the importance of interindustry technology flows in finnish manufacturing in the 1980s and early 1990s. An attempt is made to distinguish between embodied technology flows and spillovers, so clarifying the spillover concept.Embodied technology covers intermediate goods and capital equipment. The embodied technology data that have been used are partly based on input—output analysis, while the spillover estimates presented are based on measures of technological distance based on the industry-specific distributions of R&D expenditures. Econometric analysis of the effects of the various technology inputs on total factor productivity implies that technology embodied in foreign machinery, domestic spillovers and, to some extent, the firms' own R&D have been the most important technology sources on average. Journal: Economic Systems Research Pages: 67-80 Issue: 1 Volume: 9 Year: 1997 Keywords: Technology flows, R&D spillovers, total factor productivity, Finland, X-DOI: 10.1080/09535319700000005 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319700000005 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:9:y:1997:i:1:p:67-80 Template-Type: ReDIF-Article 1.0 Author-Name: Norihisa Sakurai Author-X-Name-First: Norihisa Author-X-Name-Last: Sakurai Author-Name: George Papaconstantinou Author-X-Name-First: George Author-X-Name-Last: Papaconstantinou Author-Name: Evangelos Ioannidis Author-X-Name-First: Evangelos Author-X-Name-Last: Ioannidis Title: Impact of R&D and Technology Diffusion on Productivity Growth: Empirical Evidence for 10 OECD Countries Abstract: This paper examines the empirical evidence on the impact of performed R&D and of R&D embodied in intermediate and capital goods on productivity performance in 10 major OECD countries over the last two decades. To quantify intersectoral and international technology flows, industry-level embodied R&D variables were constructed from an input-output (IO) R&D embodiment model. The productivity variables used are discrete Divisia growth indexes of total factor productivity (TFP), which were estimated from an IO growth accounting model. The results from pooled regressions indicate that the rates of return of the R&D variables were positively significant and increasing in the 1980s. In particular, embodied R&D is an important source for TFP growth in services, indicating very high social returns of the flows of capital-embodied technology into this sector. Moreover, the information and communi-cation technology (ICT) cluster of industries played a major role in the generation and cquisition of new technologies at the international level. Journal: Economic Systems Research Pages: 81-109 Issue: 1 Volume: 9 Year: 1997 Keywords: R&D, embodied R&D, productivity, ICT sector, OECD countries, X-DOI: 10.1080/09535319700000006 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319700000006 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:9:y:1997:i:1:p:81-109 Template-Type: ReDIF-Article 1.0 Author-Name: Jeffrey Bernstein Author-X-Name-First: Jeffrey Author-X-Name-Last: Bernstein Title: Interindustry R&D Spillovers for Electrical and Electronic Products: The Canadian Case Abstract: This paper estimates the effects of interindustry R&D spillovers on the cost and production structure for 10 Canadian manufacturing industries. Because of their high-tech nature and productivity performance, spillovers from electrical and electronic products are distinguished from other spillover sources. Generally, spillovers from electrical and electronic products generate cost reductions and render production processes for Canadian manufacturing industries more capital intensive (i.e. either more physical or R&D capital intensive). Social rates of return for R&D capital are calculated for all 10 industries. The social rates are 5-11 times greater than are the private rates. Indeed, the social rates are high for all the industries. This implies that the electrical and electronic products industry is an important interindustry spillover source but, like other industries, a major spillover-using industry. Journal: Economic Systems Research Pages: 111-125 Issue: 1 Volume: 9 Year: 1997 Keywords: R&D spillovers, cost function, electrical products industry, Canada, X-DOI: 10.1080/09535319700000007 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319700000007 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:9:y:1997:i:1:p:111-125 Template-Type: ReDIF-Article 1.0 Author-Name: Hiroyuki Odagiri Author-X-Name-First: Hiroyuki Author-X-Name-Last: Odagiri Author-Name: Shin-ya Kinukawa Author-X-Name-First: Shin-ya Author-X-Name-Last: Kinukawa Title: Contributions and Channels of Interindustry R&D Spillovers: An Estimation for Japanese High-tech Industries Abstract: This paper estimates the contributions of R&D spillovers to four high-tech industries in Japan—general machinery, electrical machinery, transportation machinery and chemicals—by estimating the trans-log cost and share functions that include the R&D stock variables of own and spillover-source industries. The candidates for spillover- source industries are selected on the basis of large R&D flow or R&D proximity. The R&D flow measures the spillover embodied in purchased intermediate goods using input-output coefficients. The R&D proximity measures the extent of similarity between a pair of industries of the distribution of R&D expenditures across research fields, and is expected to show the likelihood of spillover at the R&D stage. The results suggest that electrical machinery benefited from R&D in the chemical industry, through the purchase of intermediate goods, whereas general machinery and transportation machinery benefited from R&D in the metal products industry, through R&D proximity. There was no evidence of the chemical industry benefiting from R&D spillovers. These results clearly imply that the contributions and the channels of R&D spillovers are diverse, casting doubt on earlier studies that used weighted sums of R&D expenditures (or their stocks) of other industries as aggregate spillover variables. Journal: Economic Systems Research Pages: 127-142 Issue: 1 Volume: 9 Year: 1997 Keywords: R&D spillovers, R&D proximity, cost function, Japan, X-DOI: 10.1080/09535319700000008 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319700000008 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:9:y:1997:i:1:p:127-142 Template-Type: ReDIF-Article 1.0 Author-Name: Chris Debresson Author-X-Name-First: Chris Author-X-Name-Last: Debresson Title: Foreword Abstract: Journal: Economic Systems Research Pages: 147-147 Issue: 2 Volume: 9 Year: 1997 X-DOI: 10.1080/09535319700000009 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319700000009 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:9:y:1997:i:2:p:147-147 Template-Type: ReDIF-Article 1.0 Author-Name: Robert Evenson Author-X-Name-First: Robert Author-X-Name-Last: Evenson Author-Name: Daniel Johnson Author-X-Name-First: Daniel Author-X-Name-Last: Johnson Title: Introduction: Invention Input-Output Analysis Abstract: The papers in this issue are directed towards the development of invention input-output (I(IO)) coefficients. They discuss the procedures for creating I(IO) coefficients using the Yale Technology Concordance, which assigns patented inventions to the industry of manufacture and sector of use, utilizing the International Patent Class system. Tests of reliability of the I(Io) coefficients and their use in economic studies are reported. Journal: Economic Systems Research Pages: 149-160 Issue: 2 Volume: 9 Year: 1997 Keywords: Patents, Yale Technology Concordance, input-output data, R&D spillovers, total factor productivity, X-DOI: 10.1080/09535319700000010 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319700000010 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:9:y:1997:i:2:p:149-160 Template-Type: ReDIF-Article 1.0 Author-Name: Samuel Kortum Author-X-Name-First: Samuel Author-X-Name-Last: Kortum Author-Name: Jonathan Putnam Author-X-Name-First: Jonathan Author-X-Name-Last: Putnam Title: Assigning Patents to Industries: Tests of the Yale Technology Concordance Abstract: We describe a method to predict patent counts disaggregated by industry, using available data on patenting by technology field. This method—the Yale Technology Concordance (YTC)—exploits a data set of patents that have been individually assigned by the Canadian Patent Office to both an industry and a technology field. The procedure for predicting patents by industry is developed as a statistical model so that the standard errors of the predictions can be estimated. The YTC is tested on several subsets of Canadian patents by comparing out-of-sample predictions with industry assignments made by the Canadian Patent Office. We find that the predictions of patents by industry are quite accurate for the subset of patents form US inventors. The prediction errors are much greater for the subset of patents granted or published after 1989. This suggests that the relationship between the technology fields and industries has shifted in a way that the procedure does not capture. Nonetheless, predictions from the YTC do appear to give a reasonably accurate picture of the pattern of patenting by industry. Journal: Economic Systems Research Pages: 161-176 Issue: 2 Volume: 9 Year: 1997 Keywords: Patents, Yale Technology Concordance, industry classzjication, Canada, X-DOI: 10.1080/09535319700000011 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319700000011 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:9:y:1997:i:2:p:161-176 Template-Type: ReDIF-Article 1.0 Author-Name: Daniel Johnson Author-X-Name-First: Daniel Author-X-Name-Last: Johnson Author-Name: Robert Evenson Author-X-Name-First: Robert Author-X-Name-Last: Evenson Title: Innovation and Invention in Canada Abstract: This paper compares innovation survey data with invention data as recorded by patents (and, therefore, the basis of the Yale Technology Concordance), presenting input-output tables for both data sets. We describe and compare the intersec-toral flows of technology from the industry of manufacture (IOM) to the sector of use (SOU); compare patent-to-innovation ratios by industry; and present correlations between innovation, invention and R&D by industy. One significant conclusion is that, while innovation and invention data are highly correlated in the IOM, they diverge on the SOU, especially in certain key industries that we identify. Journal: Economic Systems Research Pages: 177-192 Issue: 2 Volume: 9 Year: 1997 Keywords: Patents, Yale Technology Concordance, input—output data, R&D spillovers, Canada, X-DOI: 10.1080/09535319700000012 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319700000012 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:9:y:1997:i:2:p:177-192 Template-Type: ReDIF-Article 1.0 Author-Name: Brian Fikkert Author-X-Name-First: Brian Author-X-Name-Last: Fikkert Title: Application of the Yale Technology Concordance to the Construction of International Spillover Variables for India Abstract: Although there is increased interest in the role of international technology spillovers, empirical studies have been hampered by a host of measurement problems. This paper reviews recent attempts to address two of these problems. First, there are differing degrees of transferability of technology from one region to another. Second, both embodied and disembodied technology are transferred, and these different modes of transfer have distinct implications for both behavior and policy. To deal with the first measurement problem, the Yale Technology Concordance (YTC)—a matrix that maps patents into industries of manufacture and sectors of use—was used to construct indices of relevance of foreign technology to India. To deal with the second measurement problem, the YTC was again used to construct pools of embodied and disembodied international technology. After describing the variable construction, the paper highlights the performance of these variables in equations that predict Indian firms' R&D, technology purchases and output. Journal: Economic Systems Research Pages: 193-203 Issue: 2 Volume: 9 Year: 1997 Keywords: Yale Technology Concordance, International R&D spillovers, India, X-DOI: 10.1080/09535319700000013 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319700000013 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:9:y:1997:i:2:p:193-203 Template-Type: ReDIF-Article 1.0 Author-Name: Hans van Meijl Author-X-Name-First: Hans Author-X-Name-Last: van Meijl Title: Measuring the Impact of Direct and Indirect R&D on the Productivity Growth of Industries: Using the Yale Technology Concordance Abstract: This paper investigates the impact of direct and indirect R&D on the productivity growth of 30 French industries during the period 1978-92. The main aim of this paper is to assess the appropriateness of the Yale Technology Concordance (YTC) as a proxy for indirect R&D flows. We compare the effect on productivity growth of the Yale proxy with the traditional proxy based on goods input-output flows, and assess their suitability for different groups of industries. Results indicate that the indirect YTC proxy performs slightly better than the traditional proxy, as a result of superior performance in the high-tech and service sectors in particular. Journal: Economic Systems Research Pages: 205-211 Issue: 2 Volume: 9 Year: 1997 Keywords: Yale Technology Concordance, input-output data, total factor productiv-ity growth, R&D spillovers, France, X-DOI: 10.1080/09535319700000014 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319700000014 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:9:y:1997:i:2:p:205-211 Template-Type: ReDIF-Article 1.0 Author-Name: Wolfgang Keller Author-X-Name-First: Wolfgang Author-X-Name-Last: Keller Title: Technology Flows Between Industries: Identification and Productivity Effects Abstract: This paper investigates whether the Yale Technology Concordance (YTC) succeeds in identzbing technology flows between sectors. As a test, total factor productivity (TFP)-R&D regressions based on the YTC matrix are compared with regressions using technology flow data constructed fram input-output matrices and randomly created interindusty linkages. Because results based on the YTC do not dzffer markedly from the other estimates, one cannot easily infer @om the empirical evidence whether the YTC matrix appropriately captures interindusty technology flows or not. Journal: Economic Systems Research Pages: 213-219 Issue: 2 Volume: 9 Year: 1997 Keywords: Yale Technology Concordance, total factor productivity, R&D spillovers, input-output data, USA, X-DOI: 10.1080/09535319700000015 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319700000015 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:9:y:1997:i:2:p:213-219 Template-Type: ReDIF-Article 1.0 Author-Name: Robert Evenson Author-X-Name-First: Robert Author-X-Name-Last: Evenson Title: Industrial Productivity Growth Linkages Between OECD Countries, 1970-90 Abstract: Technology 'spillovers' are increasingly being recognized as sources of productivity growth. International 'convergence' in productivity levels has also been noted in recent studies. This paper reports a study of international total factor productivity (TFP) growth for 11 industrial sectors in seven OECD countries. Spillover variables are defined based on interindusty and international invention input-output (I(IO)) weights. These variables are tested against import-weighted variables. The study concludes that I(IO)-weighted R&D 'spill-ins' are important determinants of TFP growth and that convergence is dependent on domestic RBD. Journal: Economic Systems Research Pages: 221-230 Issue: 2 Volume: 9 Year: 1997 Keywords: Total factor productivity, R&D spillovers, input-output data, OECD, X-DOI: 10.1080/09535319700000016 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319700000016 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:9:y:1997:i:2:p:221-230 Template-Type: ReDIF-Article 1.0 Author-Name: Heinz Kurz Author-X-Name-First: Heinz Author-X-Name-Last: Kurz Author-Name: Neri Salvadori Author-X-Name-First: Neri Author-X-Name-Last: Salvadori Title: Exhaustible Resources in a Dynamic Input-Output Model with 'Classical' Features Abstract: This paper discusses the problem of exhaustible resources in a dynamic input-output model with 'classical' features. Both the quantity side and the price and distribution side are discussed. The argument is developed using the simplifying assump- tions that there is no technical progress and that no new deposits of the exhaustible resources are discovered. To avoid the ' end-of-world' scenario, it is assumed that there is a 'backstop technology': this implies that exhaustible resources are useful but not necessary in the production and reproduction of commodities. A necessary and sufficient condition for the existence of paths of prices, quantities produced, and stocks of resources converging to the ultralong-period position is determined, provided that the backstop technology exhibits some appropriate properties. In addition, an algorithm to determine these paths is suggested. A numerical example illustrates the findings. Journal: Economic Systems Research Pages: 235-252 Issue: 3 Volume: 9 Year: 1997 Keywords: Dynamic input-output model, exhaustible resources, cost minimization, backstop technology, X-DOI: 10.1080/09535319700000017 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319700000017 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:9:y:1997:i:3:p:235-252 Template-Type: ReDIF-Article 1.0 Author-Name: Andras Brody Author-X-Name-First: Andras Author-X-Name-Last: Brody Title: The Second Eigenvalue of the Leontief Matrix Abstract: According to Frobenius, a positive matrix possesses a unique positive eigenvector which belongs to a positive eigenvalue. This eigenvalue is of the largest absolute magnitude and the matrix admits no other positive eigenvector. If an arbitrary positive vector is repeatedly premultiplied by such a matrix, then the result tends towards this positive eigenvector. It is the second largest eigenvalue that determines the speed of convergence. The estimate of the second eigenvalue of a purely random flow coefficient matrix shows that its expected absolute magnitude declines monotonically with the size of the matrix. Hence, the larger the system is the faster is the convergence. A prescribed exactness of the eigenvector (of equilibrium prices or quantities) will be reached after a few—perhaps just a couple of—iterations in a large system. Journal: Economic Systems Research Pages: 253-258 Issue: 3 Volume: 9 Year: 1997 Keywords: Equilibrium, convergence stability, market, X-DOI: 10.1080/09535319700000018 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319700000018 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:9:y:1997:i:3:p:253-258 Template-Type: ReDIF-Article 1.0 Author-Name: Paul De Boer Author-X-Name-First: Paul Author-X-Name-Last: De Boer Title: On the Relationship between Input-Output Coefficients and Hanoch's Linear Homogeneous Constant Differences of Elasticities of Substitution Production Function Abstract: Tilanus's 'mixed' input-output coefficients are generalized and it is shown that the generalized coefficients stand in a fixed proportion to each other if and only if the technology is described by Hanoch 's linear homogeneous constant differences of elasticities of substitution production function. Journal: Economic Systems Research Pages: 259-264 Issue: 3 Volume: 9 Year: 1997 Keywords: Input-output coefficients, HCDES production function, X-DOI: 10.1080/09535319700000019 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319700000019 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:9:y:1997:i:3:p:259-264 Template-Type: ReDIF-Article 1.0 Author-Name: Michael Sonis Author-X-Name-First: Michael Author-X-Name-Last: Sonis Author-Name: Geoffrey Hewings Author-X-Name-First: Geoffrey Author-X-Name-Last: Hewings Author-Name: Sri Sulistyowati Author-X-Name-First: Sri Author-X-Name-Last: Sulistyowati Title: Block Structural Path Analysis: Applications to Structural Changes in the Indonesian Economy Abstract: The compilation of several social accounting matrices for Indonesia has enabled the analysis of some important aspects of the structure of the Indonesian economy. In the present paper, the analysis that has been conducted with structural path methods will be enhanced through the identification of a block structure for the technique. This block structural path analysis is offered as a complement to—not a replacement for—the traditional applications of this method. A new form of triple decomposition of the social accounting matrix inverse is offered to assist in identifying important changes in the structure of the Indonesian economy for 1975, 1980 and 1985. Journal: Economic Systems Research Pages: 265-280 Issue: 3 Volume: 9 Year: 1997 Keywords: Structural path analysis, social accounting matrices, decomposition anal- ysis, Indonesia, X-DOI: 10.1080/09535319700000020 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319700000020 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:9:y:1997:i:3:p:265-280 Template-Type: ReDIF-Article 1.0 Author-Name: Roberto De Santis Author-X-Name-First: Roberto Author-X-Name-Last: De Santis Author-Name: H. Gazi Ozhan Author-X-Name-First: H. Gazi Author-X-Name-Last: Ozhan Title: Social Accounting Matrix for Turkey 1990 Abstract: Journal: Economic Systems Research Pages: 281-285 Issue: 3 Volume: 9 Year: 1997 X-DOI: 10.1080/09535319700000021 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319700000021 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:9:y:1997:i:3:p:281-285 Template-Type: ReDIF-Article 1.0 Author-Name: Terry Barker Author-X-Name-First: Terry Author-X-Name-Last: Barker Title: Books and News Abstract: Journal: Economic Systems Research Pages: 287-288 Issue: 3 Volume: 9 Year: 1997 X-DOI: 10.1080/09535319700000022 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319700000022 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:9:y:1997:i:3:p:287-288 Template-Type: ReDIF-Article 1.0 Author-Name: Andras Brody Author-X-Name-First: Andras Author-X-Name-Last: Brody Title: Books and News Abstract: Journal: Economic Systems Research Pages: 289-290 Issue: 3 Volume: 9 Year: 1997 X-DOI: 10.1080/09535319700000023 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319700000023 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:9:y:1997:i:3:p:289-290 Template-Type: ReDIF-Article 1.0 Author-Name: Victor Bulmer-thomas Author-X-Name-First: Victor Author-X-Name-Last: Bulmer-thomas Title: Books and News Abstract: Journal: Economic Systems Research Pages: 291-291 Issue: 3 Volume: 9 Year: 1997 X-DOI: 10.1080/09535319700000024 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319700000024 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:9:y:1997:i:3:p:291-291 Template-Type: ReDIF-Article 1.0 Author-Name: Gulay Gunluk-Senesen Author-X-Name-First: Gulay Author-X-Name-Last: Gunluk-Senesen Author-Name: Benan Zeki Orbay Author-X-Name-First: Benan Zeki Author-X-Name-Last: Orbay Title: Books and News Abstract: Journal: Economic Systems Research Pages: 291-293 Issue: 3 Volume: 9 Year: 1997 X-DOI: 10.1080/09535319700000025 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319700000025 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:9:y:1997:i:3:p:291-293 Template-Type: ReDIF-Article 1.0 Author-Name: Kenneth Reinert Author-X-Name-First: Kenneth Author-X-Name-Last: Reinert Title: Books and News Abstract: Journal: Economic Systems Research Pages: 293-294 Issue: 3 Volume: 9 Year: 1997 X-DOI: 10.1080/09535319700000026 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319700000026 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:9:y:1997:i:3:p:293-294 Template-Type: ReDIF-Article 1.0 Author-Name: Erik Dietzenbacher Author-X-Name-First: Erik Author-X-Name-Last: Dietzenbacher Title: Books and News Abstract: Journal: Economic Systems Research Pages: 294-297 Issue: 3 Volume: 9 Year: 1997 X-DOI: 10.1080/09535319700000027 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319700000027 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:9:y:1997:i:3:p:294-297 Template-Type: ReDIF-Article 1.0 Author-Name: Sergio Rey Author-X-Name-First: Sergio Author-X-Name-Last: Rey Title: Coefficient Change in Embedded Econometric and Input-Output Models at the Regional Level Abstract: This paper examines the nature of coefficient change in integrated econometric (EC) and input-output (IO) models that employ an embedding strategy. Existing approaches towards coefficient change in integrated models are first reviewed and several substantive processes that give rise to dynamic coefficients at the regional level are identified. The main sources of coefficient change arise from dynamic adjustment processes that affect the regional purchase coefficients, regional technological coefficients and regional integration parameters. Each of these sources of change requires a different treatment when adopting an EC perspective. A general framework is suggested that nests each treatment as a specific case. The different specifications are then implemented in an embedded EC and IO employment demand model for the San Diego region, and evaluated through a series of in-sample and out-of-sample forecasting experiments. Simulation performance is found to improve through the use of a time-varying integra tion parameter. The results also indicate that model performance is more sensitive to the use of dynamic regional purchase coefficients than to the use of dynamic technical coefficients. Journal: Economic Systems Research Pages: 307-330 Issue: 4 Volume: 9 Year: 1997 Keywords: Integrated, econometric, input-output model, coefficient change, X-DOI: 10.1080/09535319700000029 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319700000029 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:9:y:1997:i:4:p:307-330 Template-Type: ReDIF-Article 1.0 Author-Name: Bruno Van Pottelsberghe De La Potterie Author-X-Name-First: Bruno Van Pottelsberghe Author-X-Name-Last: De La Potterie Title: Issues in Assessing the Effect of Interindustry R&D Spillovers Abstract: This paper aims to clarify three issues concerning the weighting methodol ogy generally used to evaluate interindustry R&D spillovers. These issues concern the likely nature of the spillovers estimated through different types of supporting matrices; the similarity between input-output (IO), technology flows and technological proximity matrices; and the relevance of the assumption that a single matrix can be used for different countries. Data analyses of weighting components show that technology flows matrices are in an intermediate position between IO matrices and technological proximity matrices, but closer to the former. The various IO matrices, as well as the three technological proximity matrices, are very similar to each other. The panel data estimates of the effect of different types of interindustry R&D spillovers on industrial productivity growth in the G7 countries reject the hypotheses that a technology flows matrix can be approximated by an IO matrix and that a single IO matrix can be usedfor different countries. By transitivity, the procedure that comprises using a single technology flow for several countries is not reliable. The international comparison shows that each country benefits from different types of R&D externality. In Japan and, to a lesser extent, in the US, the rate of return to direct R&D is very high and is likely to compensate for relatively weak interindustry R&D spillover effects. In the five other industrialized countries, the reverse observation is true: strong social rates of return to R&D counterbal ance the poor performances of direct R&D. Journal: Economic Systems Research Pages: 331-356 Issue: 4 Volume: 9 Year: 1997 Keywords: Interindustry R&D spillovers, rate of return to R&D, social return to R&D, international comparison, panel data analysis, X-DOI: 10.1080/09535319700000030 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319700000030 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:9:y:1997:i:4:p:331-356 Template-Type: ReDIF-Article 1.0 Author-Name: Christian Lager Author-X-Name-First: Christian Author-X-Name-Last: Lager Title: Treatment of Fixed Capital in the Sraffian Framework and in the Theory of Dynamic Input-Output Models Abstract: This paper is concerned with a comparison of the treatment of fixed capital in some multi-sectoral models. First, the dynamic Leontief model is investigated. Scrutiny shows that this model suffers from conceptual misconceptions which result from restrictive assumptions concerning full-capacity production and the transferability of capital in place, and from the definition of technical coefficients. Whereas most input-output (IO) models are based on the assumption of infinite life of fixed capital, the Sraffian concept is to treat used fixed capital items as 'intermediate' goods, which appear as joint products until they are worn out. To compare that approach with some IO models, an application of the concept of a 'plant' is provided. Finally, it is demonstrated that Leontief's model, as well as some recent generalizations, are special cases of a Sraffa-von Neumann type of model. Journal: Economic Systems Research Pages: 357-374 Issue: 4 Volume: 9 Year: 1997 Keywords: Multi-sectoral growth, fixed capital, dynamic Leontief model, Sraffa, von Neumann, X-DOI: 10.1080/09535319700000031 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319700000031 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:9:y:1997:i:4:p:357-374 Template-Type: ReDIF-Article 1.0 Author-Name: Graham Treloar Author-X-Name-First: Graham Author-X-Name-Last: Treloar Title: Extracting Embodied Energy Paths from Input-Output Tables: Towards an Input-Output-based Hybrid Energy Analysis Method Abstract: Embodied energy is defined as the energy consumed in all activities necessary to support a process, including upstream processes. The Leontief inverse input-output (IO) matrix gives results that are practically complete, because of the aggregation of direct and indirect requirements, but which are also unreliable, because of inherent assumptions. Although accurate for the system boundary considered, process analysis results are incomplete relative to the pure IO system boundary. Attempts to combine process and IO analysis tend to be based on process analysis data. The system boundary is still significantly incomplete—although not as incomplete as for pure process analysis. An IO-based hybrid analysis technique that requires the extraction of particular paths from the direct IO matrix has been developed. The potential for embodied energy paths to be used as the basis for a hybrid analysis of the Australian residential building sector is discussed. The results indicate that less than three-quarters of the total embodied energy of this sector is likely to be able to be validated, because of the complexity of the embodied energy paths. Journal: Economic Systems Research Pages: 375-391 Issue: 4 Volume: 9 Year: 1997 Keywords: Leontief inverse, energy analysis, hybrid analysis, particular paths, X-DOI: 10.1080/09535319700000032 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319700000032 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:9:y:1997:i:4:p:375-391 Template-Type: ReDIF-Article 1.0 Author-Name: Jan Oosterhaven Author-X-Name-First: Jan Author-X-Name-Last: Oosterhaven Author-Name: Jan Van Der Linden Author-X-Name-First: Jan Author-X-Name-Last: Van Der Linden Title: European Technology, Trade and Income Changes for 1975-85: An Intercountry Input-Output Decomposition Abstract: This paper refines, develops and applies input-output (IO) decomposition analysis: by providing it with a unique intercountry perspective, by concentrating on explaining income growth, and by systematically separating the effects of trade structure changes from the effects of technology and preference changes. The resulting matrix formula distinguishes six components and is applied to a set of European Community (EC) intercountry IO tables for 1975 and 1985 with 25 sectors and eight EC countries. Because GDP growth is analyzed in nominal terms, macro-economic demand growth is found to be the most important component. The other five components relate to the effects of coefficient changes. Their sizes are smaller, but significant and widely different between sectors and countries, which shows that there is clear potential for effective sector policies. Journal: Economic Systems Research Pages: 393-412 Issue: 4 Volume: 9 Year: 1997 Keywords: Technological change, trade structure, income growth, decomposition analysis, European Community, X-DOI: 10.1080/09535319700000033 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319700000033 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:9:y:1997:i:4:p:393-412 Template-Type: ReDIF-Article 1.0 Author-Name: Rainer Voβkamp Author-X-Name-First: Rainer Author-X-Name-Last: Voβkamp Title: Book Reviews Abstract: Journal: Economic Systems Research Pages: 413-415 Issue: 4 Volume: 9 Year: 1997 X-DOI: 10.1080/09535319700000034 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319700000034 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:9:y:1997:i:4:p:413-415 Template-Type: ReDIF-Article 1.0 Author-Name: Karen Polenske Author-X-Name-First: Karen Author-X-Name-Last: Polenske Title: Foreword: 10th Volume of Economic Systems Research Journal of the International Input-Output Association Abstract: Journal: Economic Systems Research Pages: 1-2 Issue: 1 Volume: 10 Year: 1998 X-DOI: 10.1080/09535319800000001 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319800000001 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:10:y:1998:i:1:p:1-2 Template-Type: ReDIF-Article 1.0 Author-Name: Christian Bidard Author-X-Name-First: Christian Author-X-Name-Last: Bidard Author-Name: Guido Erreygers Author-X-Name-First: Guido Author-X-Name-Last: Erreygers Title: The Adjustment Property Abstract: An input-output (IO) system which is capable of producing any semi-positive net product by an adequate choice of the activity levels of its processes satisfies the 'adjustment' property. We analyze under which conditions the adjustment property holds for IO systems in which some produced goods have a purely intermediate character. The peculiarity of these pure capital goods is that final demand for them is identically zero. One of the ways to deal with this type of system is to eliminate the pure capital goods, by means of vertical integration. Journal: Economic Systems Research Pages: 3-18 Issue: 1 Volume: 10 Year: 1998 Keywords: Input-output systems, fixed capital, vertical integration, non-substitution, X-DOI: 10.1080/09535319800000002 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319800000002 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:10:y:1998:i:1:p:3-18 Template-Type: ReDIF-Article 1.0 Author-Name: Goran Ostblom Author-X-Name-First: Goran Author-X-Name-Last: Ostblom Title: The Environmental Outcome of Emissions-intensive Economic Growth: A Critical Look at Official Growth Projections for Sweden up to the Year 2000 Abstract: Implications for carbon dioxide, sulphur dioxide and nitrogen oxides emissions from the Swedish government's medium-term economic projections are assessed, considering Sweden's environmental goals. Data from the first environmental accounting matrix of Sweden are exploited within the framework of the interindustry model to give emission multipliers for various components of aggregate demand. In view of these emission multipliers, it is evident that the outlined macro-economic development does not conform with Sweden's environmental goals. The oil price and the structural changes assumed in the economic projections stress still further the need for strong environmental policy measures to attain the emission goals. The allocation of total expenditure is shown here to be a critical factor for bringing down the emissions to accepted levels. Journal: Economic Systems Research Pages: 19-30 Issue: 1 Volume: 10 Year: 1998 Keywords: Emission multipliers, macro-economic projections, emission/GDP ratio, environmental goals, X-DOI: 10.1080/09535319800000003 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319800000003 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:10:y:1998:i:1:p:19-30 Template-Type: ReDIF-Article 1.0 Author-Name: B. Cabrer Author-X-Name-First: B. Author-X-Name-Last: Cabrer Author-Name: D. Contreras Author-X-Name-First: D. Author-X-Name-Last: Contreras Author-Name: A. Sancho Author-X-Name-First: A. Author-X-Name-Last: Sancho Title: Prices Revisited: Their Effects on Industrial Structure Abstract: In January 1986, Spain became a member of the European Economic Community (now the European Union). This had two major effects on the Spanish economy: first, the introduction of a new tax, i. e. value-added tax; second, the variation of foreign trade taxes. The new situation produced considerable changes throughout the Spanish economy, but the main effect was on the country's industrial structure. Therefore, the objective of this paper is to verify how Spain's industrial production system was affected by these two facts, in view of price variations induced by the circumstances mentioned. We present the analysis at the regional level. Journal: Economic Systems Research Pages: 31-44 Issue: 1 Volume: 10 Year: 1998 Keywords: Industrial structure, import goods, price effect, productive process, X-DOI: 10.1080/09535319800000004 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319800000004 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:10:y:1998:i:1:p:31-44 Template-Type: ReDIF-Article 1.0 Author-Name: Kazuyuki Motohashi Author-X-Name-First: Kazuyuki Author-X-Name-Last: Motohashi Title: How Japan-US Economic Interdependence Changed from 1985 to 1990: Some Findings from Price-adjusted MITI Intercountry Input-Output Tables Abstract: This paper consists of two parts. First, constant-price Japan-US intercountry input-output (IO) tables are compiled, based on Japan-US IO tables of the Ministry of International Trade and Industry (MITI) for 1985 and 1990, and the relative producer prices of both countries, which are estimated by the 'peeling off' method from OECD purchasing power parity data. Second, a factor decomposition analysis is carried out to show changes in Japan-US economic interdependence between 1985 and 1990. The Leontief inverse matrices of intercountry IO tables are decomposed into three matrices, which reflect domestic repercussion effects, spillover effects to the other country and feedback effects of own final demand from the other country. Then, a traditional decomposition analysis of changes in production for both countries is applied to see how both countries' economic interdependence changed. It is found that Japan-US economic interdependence moved from a pattern of Japan's dependence on the US to an almost equally interdependent pattern, although the degree of dependence was still higher in Japan in 1990. At the same time, there are significant industrial structural changes in the relationship between both countries, as a result of the significant appreciation of the yen relative to the dollar from 1985 to 1990. Journal: Economic Systems Research Pages: 45-63 Issue: 1 Volume: 10 Year: 1998 Keywords: Multinational input-output tables, intercountry price adjustment, trade structure, Japan, US, X-DOI: 10.1080/09535319800000005 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319800000005 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:10:y:1998:i:1:p:45-63 Template-Type: ReDIF-Article 1.0 Author-Name: Mun-Heng Toh Author-X-Name-First: Mun-Heng Author-X-Name-Last: Toh Title: The RAS Approach in Updating Input-Output Matrices: An Instrumental Variable Interpretation and Analysis of Structural Change Abstract: The main purposes of the paper are to reconsider the rationale of the RAS method, and to attempt to improve on its interpretation and usefulness. The substitution and fabrication factors in the RAS method are interpreted as statistical estimates obtained by the method of instrumental variables. This enables the computation of asymptotic standard errors for the factors and the relative precision of the predicted technical coefficients. Furthermore, an adjustment cost minimization model to describe how a sector determines its substitution and fabrication factors is presented. The solutions of the model provide another rationale for the RAS method, and the associated Lagrangian multipliers can be useful for assessing structural constraints and structural change. Journal: Economic Systems Research Pages: 63-78 Issue: 1 Volume: 10 Year: 1998 Keywords: RAS method, instrumental variables, sectoral optimization model, Lagrange multipliers, relative precision of coefficients, X-DOI: 10.1080/09535319800000006 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319800000006 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:10:y:1998:i:1:p:63-78 Template-Type: ReDIF-Article 1.0 Author-Name: Gyorgy Molnar Author-X-Name-First: Gyorgy Author-X-Name-Last: Molnar Author-Name: Andras Simonovits Author-X-Name-First: Andras Author-X-Name-Last: Simonovits Title: The Subdominant Eigenvalue of a Large Stochastic Matrix Abstract: Using intuition and computer experimentation, Brady conjectured that the ratio of the subdominant eigenvalue to the dominant eigenvalue of a positive random matrix (with identically and independently distributed entries) converges to zero when the number of the sectors tends to infinity. In this paper, we discuss the deterministic case and, among other things, prove the following version of this conjecture: if each entry of the matrix deviates from 1/n by at most θ/n1+е, then the modulus of the subdominant root is at most θ/nе where θ and ε are arbitrary positive real parameters. Journal: Economic Systems Research Pages: 79-82 Issue: 1 Volume: 10 Year: 1998 Keywords: Convergence, large systems, stochastic matrices, X-DOI: 10.1080/09535319800000007 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319800000007 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:10:y:1998:i:1:p:79-82 Template-Type: ReDIF-Article 1.0 Author-Name: Osmo Forssell Author-X-Name-First: Osmo Author-X-Name-Last: Forssell Author-Name: Karen Polenske Author-X-Name-First: Karen Author-X-Name-Last: Polenske Title: Introduction: Input-Output and the Environment Abstract: Journal: Economic Systems Research Pages: 91-97 Issue: 2 Volume: 10 Year: 1998 X-DOI: 10.1080/09535319808565468 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319808565468 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:10:y:1998:i:2:p:91-97 Template-Type: ReDIF-Article 1.0 Author-Name: Mette Wier Author-X-Name-First: Mette Author-X-Name-Last: Wier Title: Sources of Changes in Emissions from Energy: A Structural Decomposition Analysis Abstract: This paper explores the anatomy of Danish energy consumption and emissions of carbon dioxide (CO2), sulphur dioxide (SO,) and nitrogen oxides (NO,). Changes in emissions between 1966 and 1988 were investigated using input-output structural decomposition analysis. Production-based emissions have undergone substantially greater changes than have private consumption emissions, and the increased level of final demand explains most of this development. Although the level of CO2 emissions has risen proportionally to energy consumption, the NO, emissions level has increased relatively more and the SO, emissions level has declined considerably. There are several reasons for these developments, the main reason being changes in fuel mix in the energy-supply sector. Energy conservation has been implemented throughout the economy-with the important exception of transportation fuel. In most sectors and all demand categories, there has been a shift towards less energy-intensive composition of inputs and commodities. Both effects have considerably reduced emissions, but this has been outweighed by economic growth, which has required energy for further production throughout the whole period studied. Journal: Economic Systems Research Pages: 99-112 Issue: 2 Volume: 10 Year: 1998 Keywords: Energy and energy-related emissions of CO2, SO, and NO, structural decomposition analysis, input-output modelling, X-DOI: 10.1080/09535319808565469 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319808565469 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:10:y:1998:i:2:p:99-112 Template-Type: ReDIF-Article 1.0 Author-Name: Glenn-Marie Lange Author-X-Name-First: Glenn-Marie Author-X-Name-Last: Lange Title: Applying an Integrated Natural Resource Accounts and Input-Output Model to Development Planning in Indonesia Abstract: Natural resource accounts (NRA) can provide an effective tool for linking information about the environment and the economy. However, because NRA are quite new, their contribution to policy-making is not yet well established. This paper provides an example of how NRA can be used for policy analysis based on work conducted in Indonesia. An environmental-economic model is constructed by integrating the NRA with a 30-sector, dynamic input-output model. To assess the environmental implications of Indonesia's second long-term development plan, six alternative scenarios of ways to achieve the objectives of the plan were constructed for the period 1984-2020. These scenarios were based on combinations of assumptions about rates of economic growth and technological change, especially where this growth or change affects resource use. Economic and environmental results of the alternative scenarios are discussed. Journal: Economic Systems Research Pages: 113-134 Issue: 2 Volume: 10 Year: 1998 Keywords: Natural resource accounts, dynamic input-output model, environmental-economic model, Indonesia, X-DOI: 10.1080/09535319808565470 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319808565470 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:10:y:1998:i:2:p:113-134 Template-Type: ReDIF-Article 1.0 Author-Name: Zhongxiang Zhang Author-X-Name-First: Zhongxiang Author-X-Name-Last: Zhang Title: Macro-economic and Sectoral Effects of Carbon Taxes: A General Equilibrium Analysis for China Abstract: This paper analyzes the macro-economic and sectoral effects of carbon taxes imposed to achieve predefined carbon dioxide (CO2) emission targets for China, by using a dynamic computable general equilibrium model of the Chinese economy. Following a brief introduction of the model, the baseline scenario for the Chinese economy until 2010 is developed under a set of assumptions about the exogenous variables. Next, the paper analyzes the economic implications of two less restrictive scenarios under which China's CO2 emissions in 2010 are cut by 20% and 30%, respectively, relative to the baseline, assuming that carbon tax revenues are retained by the government. Then, the efficiency improvements are computed for four indirect tax-offset scenarios relative to the two tax-retention scenarios already considered. The paper ends with some remarks on constructing a social accounting matrix for China and suggestions for further work to enrich the policy relevance of this study. Journal: Economic Systems Research Pages: 135-159 Issue: 2 Volume: 10 Year: 1998 Keywords: Carbon dioxide emissions, carbon tax, China, computable general equilib-rium model, X-DOI: 10.1080/09535319808565471 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319808565471 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:10:y:1998:i:2:p:135-159 Template-Type: ReDIF-Article 1.0 Author-Name: Klaus Conrad Author-X-Name-First: Klaus Author-X-Name-Last: Conrad Author-Name: Tobias Schmidt Author-X-Name-First: Tobias Author-X-Name-Last: Schmidt Title: Economic Effects of an Uncoordinated Versus a Coordinated Carbon Dioxide Policy in the European Union: An Applied General Equilibrium Analysis Abstract: The objective of this paper is to quantify the economic effects of introducing carbon-reduction policies in the European Union (EU). For this purpose, we use linked applied general equilibrium (AGE) models for 11 EU member countries. This method enables us to measure the change in competitiveness for domestic industries; the effect on growth, employment and inflation in member countries; and the costs and benefits of a coordinated versus an uncoordinated approach to adhere to an EU target of carbon dioxide (CO2) emissions. Unemployment is high in the EU, and many economists believe that this problem as well as global warming can be solved by a CO2 tax, where tax revenues are used to reduce employers' contributions to social insurance. Then, hopefully, a'double dividend will result for the environment as well as for the labor market. In one simulation, each country implements a CO2 tax to limit CO2 emissions by 10%. As an alternative to this uncoordinated approach, we calculated an overall CO2 tax for the EU to limit the CO2 emissions of the EU by 10%. We will measure the effects on the labor market, on economic performance and on trade flows under the uncoordinated CO2 policy, and will compare the results with the coordinated CO2 policy of an overall CO2 reduction for the EU. Journal: Economic Systems Research Pages: 161-182 Issue: 2 Volume: 10 Year: 1998 Keywords: Applied general equilibrium, global warming, carbon dioxide tax, policy coordination, European Union, X-DOI: 10.1080/09535319808565472 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319808565472 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:10:y:1998:i:2:p:161-182 Template-Type: ReDIF-Article 1.0 Author-Name: Osmo Forssell Author-X-Name-First: Osmo Author-X-Name-Last: Forssell Title: Extending Economy-wide Models with Environment-related Parts Abstract: The aims of this paper are to review and discuss the state-of-the-art in some applied general equilibrium models, and to analyze what kinds of variables and modules should be included in an integrated environmental and economic model. The environment-economy framework is discussed A system of integrated environmental and economic accounting will improve the basic description frame and supply a database for constructing integrated environmental-economic models. Data on natural assets and their functions for human society, such as raw materials, a sink to absorb and recycle waste products, and other environmental services, are then essential. The valuation of the economic use of natural assets is problematic, because they often have non-market values. Measurements which include physical units, non-market valuation, optimal values and non-use values are outlined. A general equilibrium approach for environmental economics provides a conceptual theoretical framework for the construction of integrated environmental-economic models. Extensions of input-output models to represent interactions between the environ-ment and the economy provide an empirically oriented approach. Advanced large-scale models could integrate these two kinds of framework. How these kinds of models have succeeded in practice is considered in a review of a sample of models. Finally, possible extensions to the models are considered Journal: Economic Systems Research Pages: 183-199 Issue: 2 Volume: 10 Year: 1998 Keywords: Environment-economy framework, large-scale environmental-energy-economy equilibrium models, X-DOI: 10.1080/09535319808565473 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319808565473 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:10:y:1998:i:2:p:183-199 Template-Type: ReDIF-Article 1.0 Author-Name: Christian Lager Author-X-Name-First: Christian Author-X-Name-Last: Lager Title: Prices of Goods' and 'Bads': An Application of the Ricardian Theory of Differential Rent Abstract: Pollutants, wastes and scrap appear as joint products of consumption or production processes. Leontief and other authors extend input-output (IO) tables such that additional products and industries, respectively, account for pollutants and abatement activities; they also analyze the effects of pollution control policies, by means of traditional IO methods. This approach does not account for choice of technique and, therefore, neglects the possibility of substitution. This paper proposes to utilize Ricardo's theory of differential rent, which is based on the possibility of coexisting technical alternatives. Journal: Economic Systems Research Pages: 203-223 Issue: 3 Volume: 10 Year: 1998 Keywords: Pollution and cost of abatement, Ricardian rent, choice of technique, X-DOI: 10.1080/762947108 File-URL: http://www.tandfonline.com/doi/abs/10.1080/762947108 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:10:y:1998:i:3:p:203-223 Template-Type: ReDIF-Article 1.0 Author-Name: Randall Jackson Author-X-Name-First: Randall Author-X-Name-Last: Jackson Title: Regionalizing National Commodity-by-Industry Accounts Abstract: Exended input-output (IO) models are increasingly prominent in regional economic analysis. Social accounting matrices and associated multiplier decompositions, IO econometric model hybrids and computable general equilibrium models are finding greater acceptance in contexts in which simple IO models once dominated. Although the extended regional models build primarily on the foundation of regional, interindustry accounting frameworks, the data from which these regional accounts are drawn are most commonly in the form of a national commodity-by-industry account. Despite this longstanding fact, the IO table adaptation literature has focused almost solely on methods of adapting national interindustry accounts to regional economies. This paper presents a method designed specifically to regionalize commodity-by-industry accounts, in the context of the US reporting system. The focus on commodity-by-industry data demands a confrontation with several important issues that otherwise might go unattended. Using a particular system and its accompanying classification scheme ensures a comprehensive and consistent regionalization method. Journal: Economic Systems Research Pages: 223-238 Issue: 3 Volume: 10 Year: 1998 Keywords: Regional accounts, input-output, commodity-by-industry, X-DOI: 10.1080/762947109 File-URL: http://www.tandfonline.com/doi/abs/10.1080/762947109 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:10:y:1998:i:3:p:223-238 Template-Type: ReDIF-Article 1.0 Author-Name: Tim Dowd Author-X-Name-First: Tim Author-X-Name-Last: Dowd Author-Name: Ralph Monaco Author-X-Name-First: Ralph Author-X-Name-Last: Monaco Author-Name: Jeffry Janoska Author-X-Name-First: Jeffry Author-X-Name-Last: Janoska Title: Effects of Future Demographic Changes on the US Economy: Evidence from a Long-term Simulation Model Abstract: Demographics, especially the size and the age composition of the population, contribute substantially to the growth and structure of any economy. Over the next 55 years, the age composition of the US population will change dramatically, as the post-World War II 'baby boom' ages into retirement. In this paper, we use a long-term interindustry macro model of the US economy to examine how the age composition of the US population affects overall economic growth as well as the output/employment structure of the economy. We find that the system of funding government commitments to pension and medical care for the elderly is a primary channel through which demographic effects translate into economic effects. Journal: Economic Systems Research Pages: 239-262 Issue: 3 Volume: 10 Year: 1998 Keywords: Demographics, long-term projections, consumer spending, age structure, X-DOI: 10.1080/762947110 File-URL: http://www.tandfonline.com/doi/abs/10.1080/762947110 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:10:y:1998:i:3:p:239-262 Template-Type: ReDIF-Article 1.0 Author-Name: Santadas Ghosh Author-X-Name-First: Santadas Author-X-Name-Last: Ghosh Author-Name: Joyashree Roy Author-X-Name-First: Joyashree Author-X-Name-Last: Roy Title: Qualitative Input-Output Analysis of the Indian Economic Structure Abstract: Qualitative input-output (IO) analysis can be considered mostly in terms of a graph-theoretic formulation, which involves the construction and use of an adjacency matrix, derived from a binary transformation of the IO coefficient matrix. Classical attempts at qualitative IO analysis have derived the structure from the direct IO coefficient table. In more recent attempts, greater sophistication has been achieved by incorporating a degree of quantification into the qualitative analysis. Also, the concept of important coefficients (IC) has been used for the construction of the adjacency matrix. The present study is carried out along these lines for the Indian economy. Journal: Economic Systems Research Pages: 263-274 Issue: 3 Volume: 10 Year: 1998 Keywords: Graph theory, adjacency matrix, important coefficient, centrality index, X-DOI: 10.1080/762947111 File-URL: http://www.tandfonline.com/doi/abs/10.1080/762947111 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:10:y:1998:i:3:p:263-274 Template-Type: ReDIF-Article 1.0 Author-Name: Thijs ten Raa Author-X-Name-First: Thijs ten Author-X-Name-Last: Raa Author-Name: Pieter Kop Jansen Author-X-Name-First: Pieter Kop Author-X-Name-Last: Jansen Title: Bias and Sensitivity of Multipliers Abstract: Multipliers measure the derivatives of endogenous variables with respect to exogenous shocks and are functions of the structural parameters of an economic model. Substitution of the structural parameter estimates yields a so-called derived estimate for a multiplier or any reduced-form parameter. Derived estimates are biased. This paper presents first-order approximations to the biases and sensitivities of multipliers. The good performance of a flawed formula in input-output analysis is illuminated. Journal: Economic Systems Research Pages: 275-284 Issue: 3 Volume: 10 Year: 1998 Keywords: Multipliers, bias, input-output analysis, X-DOI: 10.1080/762947112 File-URL: http://www.tandfonline.com/doi/abs/10.1080/762947112 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:10:y:1998:i:3:p:275-284 Template-Type: ReDIF-Article 1.0 Author-Name: Stanisław Białas Author-X-Name-First: Stanisław Author-X-Name-Last: Białas Author-Name: Henryk Gurgul Author-X-Name-First: Henryk Author-X-Name-Last: Gurgul Title: On Hypothesis about the Second Eigenvalue of the Leontief Matrix Abstract: If an arbitrarily positive eigenvector is repeatedly premultiplied by a positive matrix, then the result tends towards a unique, positive (Frobenius) eigenvector. Brady has demonstrated that the expected absolute magnitude of the estimate of the second largest eigenvalue of a positive random matrix (with identically and independently distributed entries) declines monotonically with the increasing size of the matrix. Hence, the larger the system is, the faster is the convergence. Molnar and Simonovits examined Brady's conjecture in the case where entries of a stochastic matrix are close to 1/n. We prove this hypothesis for any stochastic and positive matrix. Journal: Economic Systems Research Pages: 285-290 Issue: 3 Volume: 10 Year: 1998 Keywords: Equilibrium, second eigenvalue, convergence, X-DOI: 10.1080/762947113 File-URL: http://www.tandfonline.com/doi/abs/10.1080/762947113 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:10:y:1998:i:3:p:285-290 Template-Type: ReDIF-Article 1.0 Author-Name: Ingrid Kubin Author-X-Name-First: Ingrid Author-X-Name-Last: Kubin Title: Book Reviews Abstract: Journal: Economic Systems Research Pages: 291-291 Issue: 3 Volume: 10 Year: 1998 X-DOI: 10.1080/762947114 File-URL: http://www.tandfonline.com/doi/abs/10.1080/762947114 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:10:y:1998:i:3:p:291-291 Template-Type: ReDIF-Article 1.0 Author-Name: Marc Lavoie Author-X-Name-First: Marc Author-X-Name-Last: Lavoie Title: Book Reviews Abstract: Journal: Economic Systems Research Pages: 291-292 Issue: 3 Volume: 10 Year: 1998 X-DOI: 10.1080/762947115 File-URL: http://www.tandfonline.com/doi/abs/10.1080/762947115 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:10:y:1998:i:3:p:291-292 Template-Type: ReDIF-Article 1.0 Author-Name: Robert Solow Author-X-Name-First: Robert Author-X-Name-Last: Solow Title: Rereading The Structure of the American Economy Abstract: Journal: Economic Systems Research Pages: 299-306 Issue: 4 Volume: 10 Year: 1998 X-DOI: 10.1080/09535319800000022 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319800000022 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:10:y:1998:i:4:p:299-306 Template-Type: ReDIF-Article 1.0 Author-Name: Erik Dietzenbacher Author-X-Name-First: Erik Author-X-Name-Last: Dietzenbacher Author-Name: Bart Los Author-X-Name-First: Bart Author-X-Name-Last: Los Title: Structural Decomposition Techniques: Sense and Sensitivity Abstract: Structural decomposition techniques are widely used to break down the growth in some variable into the changes in its determinants. In this paper, we discuss the problems caused by the existence of a multitude of equivalent decomposition forms which are used to measure the contribution of a specific determinant. Although it is well known that structural decompositions are not unique, the extent of the problem and its consequences seem to have been largely neglected. In an empirical analysis for The Netherlands between 1986 and 1992, results are calculated for 24 equivalent decomposition forms. The outcomes exhibit a large degree of variability across the different forms. We also examine the two approaches that have been used predominantly in the literature. The average of the two so-called polar decompositions appears to be remarkably close to the average of the full set of 24 decompositions. The approximate decomposition with mid-point weights appears to be almost exact. Although this last alternative might seem a solution to the problem of the marked sensitivity, in fact, it only conceals the problem. Journal: Economic Systems Research Pages: 307-324 Issue: 4 Volume: 10 Year: 1998 Keywords: Decomposition techniques, input-output framework, sensitivity analysis, X-DOI: 10.1080/09535319800000023 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319800000023 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:10:y:1998:i:4:p:307-324 Template-Type: ReDIF-Article 1.0 Author-Name: Francis Cronin Author-X-Name-First: Francis Author-X-Name-Last: Cronin Author-Name: Mark Gold Author-X-Name-First: Mark Author-X-Name-Last: Gold Title: Analytical Problems in Decomposing the System-wide Effects of Sectoral Technical Change Abstract: The disaggregated structure of input-output (IO) analysis makes it very attractive in analyzing technical change. Various authors have applied IO models in comparative static experiments to measure the effects of observed technical changes in individual industries on economy-wide total output (or related primary input) requirements. Less often have researchers performed similar analyses on the effects of changes across all consuming industries in the productive consumption of a sector's output, because of the need to append an external analysis of substitution. Despite the obstacles to joint analyses of sectoral production and cross-sectoral consumption change, its appeal has long been recognized. In this paper, an anomaly in such analyses is presented: the sum of the separate effects of changes in production and changes in productive consumption does not equal the effects of the joint change. A comparative static exercise reveals the root cause of the anomaly: essentially, an index number problem. Empirical analyses are performed across a comprehensive set of US sectors to estimate the range of discrepancies. Journal: Economic Systems Research Pages: 325-336 Issue: 4 Volume: 10 Year: 1998 Keywords: Technological change, structural change, productivity, system-wide savings, decomposition analysis, X-DOI: 10.1080/09535319800000024 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319800000024 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:10:y:1998:i:4:p:325-336 Template-Type: ReDIF-Article 1.0 Author-Name: Christoph Weber Author-X-Name-First: Christoph Author-X-Name-Last: Weber Author-Name: Hermann Schnabl Author-X-Name-First: Hermann Author-X-Name-Last: Schnabl Title: Environmentally Important Inter sectoral Flows: Insights from Main Contributions Identification and Minimal Flow Analysis Abstract: For the analysis of economic interdependences form an environmental perspective, a condensation of the information contained in input-output (IO) tables is desirable, but without much loss of the quantitative dimension. For the case of total energy requirements, main contributions identification is presented as an approach that allows a partitioning of total energy requirements by production layers and (final) energy-consuming sectors. For this purpose, a mixed monetary-energy IO model and a partitioning procedure are used. In addition, minimal flow analysis as a graphical method is used to detect importnant energetic interconnections. Environmentally Important Intersectoral Flows Journal: Economic Systems Research Pages: 337-356 Issue: 4 Volume: 10 Year: 1998 Keywords: Energy, environment, main contributions identification, minimal flow analysis, X-DOI: 10.1080/09535319800000025 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319800000025 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:10:y:1998:i:4:p:337-356 Template-Type: ReDIF-Article 1.0 Author-Name: Antonio Manresa Author-X-Name-First: Antonio Author-X-Name-Last: Manresa Author-Name: Ferran Sancho Author-X-Name-First: Ferran Author-X-Name-Last: Sancho Author-Name: Josep Maria Vegara Author-X-Name-First: Josep Maria Author-X-Name-Last: Vegara Title: Measuring Commodities' Commodity Content Abstract: Within the standard linear framework, a methodology, formally similar to the labour theory of value, is proposed to compute the direct and indirect commodity contents of any produced good. The proposal is then compared with the more familiar social accounting matrix (SAM) accounting procedure, using an appropriate partitioning of the SAM accounts. Some numerical results are then obtained and compared using a recently compiled SAM for Catalonia. The empirical results show the practical feasibility of the proposed methodology. Journal: Economic Systems Research Pages: 357-365 Issue: 4 Volume: 10 Year: 1998 Keywords: Input-output multipliers, SAM multipliers, interdependence, commodity contents, X-DOI: 10.1080/09535319800000026 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319800000026 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:10:y:1998:i:4:p:357-365 Template-Type: ReDIF-Article 1.0 Author-Name: Jan Oosterhaven Author-X-Name-First: Jan Author-X-Name-Last: Oosterhaven Title: Book Reviews and News Abstract: Journal: Economic Systems Research Pages: 367-368 Issue: 4 Volume: 10 Year: 1998 X-DOI: 10.1080/09535319800000027 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319800000027 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:10:y:1998:i:4:p:367-368 Template-Type: ReDIF-Article 1.0 Author-Name: Catrinus Jepma Author-X-Name-First: Catrinus Author-X-Name-Last: Jepma Title: Book Reviews and News Abstract: Journal: Economic Systems Research Pages: 369-369 Issue: 4 Volume: 10 Year: 1998 X-DOI: 10.1080/09535319800000028 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319800000028 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:10:y:1998:i:4:p:369-369 Template-Type: ReDIF-Article 1.0 Author-Name: George Papaconstantinou Author-X-Name-First: George Author-X-Name-Last: Papaconstantinou Title: Book Reviews and News Abstract: Journal: Economic Systems Research Pages: 369-371 Issue: 4 Volume: 10 Year: 1998 X-DOI: 10.1080/09535319800000029 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319800000029 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:10:y:1998:i:4:p:369-371 Template-Type: ReDIF-Article 1.0 Author-Name: Erik Dietzenbacher Author-X-Name-First: Erik Author-X-Name-Last: Dietzenbacher Title: Report on the Conference in New York Abstract: Journal: Economic Systems Research Pages: 371-372 Issue: 4 Volume: 10 Year: 1998 X-DOI: 10.1080/09535319800000030 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319800000030 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:10:y:1998:i:4:p:371-372 Template-Type: ReDIF-Article 1.0 Author-Name: Erik Dietzenbacher Author-X-Name-First: Erik Author-X-Name-Last: Dietzenbacher Title: Editorial Abstract: Journal: Economic Systems Research Pages: 3-4 Issue: 1 Volume: 11 Year: 1999 X-DOI: 10.1080/09535319900000001 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319900000001 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:11:y:1999:i:1:p:3-4 Template-Type: ReDIF-Article 1.0 Author-Name: Ian Steedman Author-X-Name-First: Ian Author-X-Name-Last: Steedman Title: Values Do Follow a Simple Rule! Abstract: Contrary to what is often suggested, values do follow a very simple rule as the rate of profit r varies, provided only that the system is square. None of single production, semi-positive vertically integrated input coefficients, or regularity a la Schefold needs to be assumed. Furthermore, that very simple rule is followed for all finite values of r and can be expressed solely in terms of the powers of r. Moreover, when the requisite numeraire is employed, the wage profit frontier takes a simple form; conversely, when the frontier takes that form, one knows that the requisite numeraire is being used, even without knowing what it is. Journal: Economic Systems Research Pages: 5-14 Issue: 1 Volume: 11 Year: 1999 Keywords: Relative prices, distribution, numeraires, X-DOI: 10.1080/09535319900000002 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319900000002 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:11:y:1999:i:1:p:5-14 Template-Type: ReDIF-Article 1.0 Author-Name: Georg Stamatis Author-X-Name-First: Georg Author-X-Name-Last: Stamatis Title: Georg Charasoff: A Pioneer in the Theory of Linear Production Systems Abstract: This paper exposes mathematically Charasoff s results on linear production systems. Charasoff developed an algorithm for the iterative calculation of the Leontief inverse, the concepts of basic and non-basic commodities, as well as the Srajfian standard system. This allowed him, given the real wage rate, to calculate the profit rate independently of prices as the ratio of two physically homogeneous magnitudes, and then the prices for an already given profit rate. Therefore, as early as 1910, Charasoff had developed significant concepts of the theory of linear production systems, which long afterwards became more broadly known through the works of Leontief and Sraffa. Journal: Economic Systems Research Pages: 15-30 Issue: 1 Volume: 11 Year: 1999 Keywords: Charasoff, Leontief, Sraffa, linear production theory, Marxian economic theory, X-DOI: 10.1080/09535319900000003 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319900000003 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:11:y:1999:i:1:p:15-30 Template-Type: ReDIF-Article 1.0 Author-Name: Hans van Meijl Author-X-Name-First: Hans Author-X-Name-Last: van Meijl Author-Name: Frank van Tongeren Author-X-Name-First: Frank Author-X-Name-Last: van Tongeren Title: Endogenous International Technology Spillovers and Biased Technical Change in Agriculture Abstract: This paper analyzes trade-related knowledge flows from an innovating country to other countries. It is assumed that knowledge is embodied in commodities traded between countries and that the potential productivity of this knowledge is determined by the local usability of foreign technologies. The usability of foreign knowledge is dependent on the local absorption capacity (such as knowledge infrastructure and human capital) and on structural differences (factor endowments or climate) between countries. In agriculture, a large portion of the knowledge is embodied in inputs which cause factor-biased technical change in the receiving sectors. Trade-related knowledge transmission is introduced in an applied multi-region general equilibrium model (GTAP) to study the macro-economic and sectoral impacts of knowledge spillovers and of trade policies. Endogenous embodied technology spillovers bear some important implications for trade policy, because protective measures preclude countries not only from cheaper imports but also from foreign technologies. Journal: Economic Systems Research Pages: 31-48 Issue: 1 Volume: 11 Year: 1999 Keywords: Biased technical change, knowledge spillovers, applied multi-sector multi-region general equilibrium model, trade liberalization, X-DOI: 10.1080/09535319900000004 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319900000004 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:11:y:1999:i:1:p:31-48 Template-Type: ReDIF-Article 1.0 Author-Name: Chinkook Lee Author-X-Name-First: Chinkook Author-X-Name-Last: Lee Author-Name: Gerald Schluter Author-X-Name-First: Gerald Author-X-Name-Last: Schluter Title: Effect of Trade on the Demand for Skilled and Unskilled Workers Abstract: We use an input-output model to examine the effects of trade and domestic consumption, technology and labor productivity on skilled and unskilled worker demand. We found that trade was not the major contributor to changes in demand for skilled and unskilled labor during 1972-92, counter to the continuing debate on the trade-widening wage gap linkage. We found that skill intensity, i.e. the ratio of high-skilled to low-skilled workers for exports compared with imports, exceeded one during 1972-92, but did not increase. We explore alternative definitions of skilled and unskilled, and find our results to be robust to these alternative definitions. Journal: Economic Systems Research Pages: 49-66 Issue: 1 Volume: 11 Year: 1999 Keywords: Skill intensity of US trade, international trade impacts, skilled—unskilled wage gap, X-DOI: 10.1080/09535319900000005 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319900000005 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:11:y:1999:i:1:p:49-66 Template-Type: ReDIF-Article 1.0 Author-Name: Tullio Gregori Author-X-Name-First: Tullio Author-X-Name-Last: Gregori Author-Name: Gustav Schachter Author-X-Name-First: Gustav Author-X-Name-Last: Schachter Title: Assessing Aggregate Structural Change Abstract: The aim of this paper is to investigate the evolution of Italian aggregate structural change over the years 1965-85. We use annual input-output (IO) tables in current and constant prices to derive an aggregate index of structural change. We adopt several techniques for such an explorative analysis. First, we borrow from qualitative matrix analysis and graph theory some basic concepts to assess direct and indirect links among sectors, and interrelatedness measures are derived in a straightforward way. However, qualitative analysis of indirect links may be flawed, since it can establish a path that is quantitatively negligible. Then, we turn our attention to a non-standard quantitative index derived from structural path analysis, expressed by a simple function of the input matrix determinant. Since empirical findings indicate a structural break in 1975, we derive another measure of technical change: the dominant eigenvalue. Such an index has several interesting properties but no clear relationship to the circularity process implicit in the Leontief model. Results for constant- and actual-price IO tables are discussed and compared with main macro-economic variables over the sample. Empirical findings indicate a relationship between investment, variability in final demand and aggregate structural change. Journal: Economic Systems Research Pages: 67-82 Issue: 1 Volume: 11 Year: 1999 Keywords: Structural change, production structures, graph theory, dominant eigenvalue, X-DOI: 10.1080/09535319900000006 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319900000006 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:11:y:1999:i:1:p:67-82 Template-Type: ReDIF-Article 1.0 Author-Name: Marina White Author-X-Name-First: Marina Author-X-Name-Last: White Title: Regional Production and Cost Minimization in the Republics of the Former Soviet Union Abstract: After the disintegration of the Soviet Union, the problems encountered early in the reforms made it obvious that understanding the system and structure of the economy during the Soviet period was crucial for predictions and recommendations. The present study analyzes the production of the republics of the former Soviet Union, by grouping them into the regions defined by common geographical and historical conditions, and by estimation of cost functions that represent the two major theories of international trade: the Heckscher-Ohlin and Ricardo-Viner models. The estimated parameters of the cost functions allow us to draw conclusions about the achievement of cost minimization and to calculate the elasticities that represent the comparative statics of both models. As a result of the analysis, it is demonstrated that the achievement of the cost-minimization goal depends on local conditions. Journal: Economic Systems Research Pages: 83-105 Issue: 1 Volume: 11 Year: 1999 Keywords: Soviet Union, trade models, cost minimization, panel data, X-DOI: 10.1080/09535319900000007 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319900000007 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:11:y:1999:i:1:p:83-105 Template-Type: ReDIF-Article 1.0 Author-Name: Paola Antonello Author-X-Name-First: Paola Author-X-Name-Last: Antonello Title: Introduction: Special Theme in Memory of Richard Goodwin Abstract: Journal: Economic Systems Research Pages: 111-112 Issue: 2 Volume: 11 Year: 1999 X-DOI: 10.1080/09535319900000008 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319900000008 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:11:y:1999:i:2:p:111-112 Template-Type: ReDIF-Article 1.0 Author-Name: Kumaraswamy Velupillai Author-X-Name-First: Kumaraswamy Author-X-Name-Last: Velupillai Title: Non-maximum Disequilibrium Macrodynamics Abstract: In his stimulating Nobel Prize Lecture, Paul Samuelson made the important point that there were interesting macrodynamic systems which could, in no sensible sense, be associated with maximization problems. The paradigmatic example he chose was the multiplier-accelerator system. In this paper I make an attempt to explore the connection between macrodynamics, rationality and computability against the backdrop provided by Samuelson's observation and Richard Goodwin's nonlinear methodological credo. It is shown that non-maximum, disequilibrium macrodynamics is perfectly consistent with standard rationality postulates. Journal: Economic Systems Research Pages: 113-126 Issue: 2 Volume: 11 Year: 1999 Keywords: Non-maximum macrodynamics, disequilibrium dynamics, computation universality, X-DOI: 10.1080/09535319900000009 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319900000009 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:11:y:1999:i:2:p:113-126 Template-Type: ReDIF-Article 1.0 Author-Name: Andrew Brody Author-X-Name-First: Andrew Author-X-Name-Last: Brody Title: A Long Monetary Swing Abstract: The existence of a long swing may be explained and its length can be computed with the aid of a simple 'Goodwinesque' model, built on the original monetary theory of Hawtrey. The mathematical, historical and human aspects of a long swing of this sort are discussed. Journal: Economic Systems Research Pages: 127-138 Issue: 2 Volume: 11 Year: 1999 Keywords: Growth, cycle, money, interest, X-DOI: 10.1080/09535319900000010 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319900000010 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:11:y:1999:i:2:p:127-138 Template-Type: ReDIF-Article 1.0 Author-Name: Paola Antonello Author-X-Name-First: Paola Author-X-Name-Last: Antonello Title: Simultaneous Adjustment of Quantities and Prices: An Example of Hamiltonian Dynamics Abstract: In a well-known essay first published in 1953, Goodwin analyzed the dynamic adjustment of quantities and prices to long-run equilibrium values, in a set ofn 'Walrasian' markets. He treated the crossed adjustment of prices and quantities as a linear Hamiltonian vector field. In more recent work, Goodwin introduced non-linear perturbations in his multi-sectoral adjustment model. He assumed that real consumption depends non-linearly on relative prices. This paper shows the following: (1) Goodwin's behavioural hypotheses are compatible with the assumption that agents maximize; (2) if the dynamic process is Hamiltonian, then symplectic coordinate changes are essential tools of analysis; (3) if the real wage is rigid and returns to scale are not constant, then the Hamiltonian model can generate chaotic transients or, in extreme cases, pure chaotic motions. Journal: Economic Systems Research Pages: 139-162 Issue: 2 Volume: 11 Year: 1999 Keywords: Nonlinearity, multi-sectoral, Hamiltonian dynamics, X-DOI: 10.1080/09535319900000011 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319900000011 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:11:y:1999:i:2:p:139-162 Template-Type: ReDIF-Article 1.0 Author-Name: James Ramsey Author-X-Name-First: James Author-X-Name-Last: Ramsey Title: Regression over Timescale Decompositions: A Sampling Analysis of Distributional Properties Abstract: In two previous papers, Ramsey and Lampart demonstrated that regression analyses between timescale decompositions provided important insight into the properties of economic relationships. The idea in those papers was that the relationship between any two variables, say consumption and income, was the union of the individual relationships between consumption and income at each timescale and that the regression relationship might, differ across timescales. This paper is dedicated to discovering the approximate distributional properties of the regression estimators and of the residuals in the context of such models. Sampling procedures are used to verify the distributional properties of the regression estimators at each timescale and those of the residuals. This analysis is necessary to provide the appropriate distributional information required to specify tests of hypotheses and confidence intervals. Journal: Economic Systems Research Pages: 163-184 Issue: 2 Volume: 11 Year: 1999 Keywords: Timescale, wavelets, consumption function, income velocity, X-DOI: 10.1080/09535319900000012 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319900000012 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:11:y:1999:i:2:p:163-184 Template-Type: ReDIF-Article 1.0 Author-Name: Donald Gilchrist Author-X-Name-First: Donald Author-X-Name-Last: Gilchrist Author-Name: Larry V. ST Louis Author-X-Name-First: Larry V. ST Author-X-Name-Last: Louis Title: Completing Input-Output Tables using Partial Information, with an Application to Canadian Data Abstract: This paper develops a three-stage extension of the standard biproportional RAS algorithm-an extension that we label TRAS-to incorporate information in addition to row and column margins. The TRAS algorithm is tested using pseudo-censored input-output tables and is shown to produce more accurate estimates than does the RAS algorithm. Journal: Economic Systems Research Pages: 185-194 Issue: 2 Volume: 11 Year: 1999 Keywords: RAS, updating, social accounting, X-DOI: 10.1080/09535319900000013 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319900000013 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:11:y:1999:i:2:p:185-194 Template-Type: ReDIF-Article 1.0 Author-Name: Elio Londero Author-X-Name-First: Elio Author-X-Name-Last: Londero Title: Secondary Products, By-products and the Commodity Technology Assumption Abstract: A more general method for preparing commodity-by-commodity input-output tables under the commodity technology assumption is presented for the case when there are produced and non-produced by-products, originating in principal and in secondary production. Existing methods of the same family are shown to be special cases of the method presented here. An incorrect model specification is found to be a sufficient condition for unwarranted negative coefficients. Finally, the model is shown to satisfy desirable properties of an input-output system Journal: Economic Systems Research Pages: 195-203 Issue: 2 Volume: 11 Year: 1999 Keywords: Input-Output, commodity technology assumption, by-products, X-DOI: 10.1080/09535319900000014 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319900000014 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:11:y:1999:i:2:p:195-203 Template-Type: ReDIF-Article 1.0 Author-Name: Rainer Vosskamp Author-X-Name-First: Rainer Author-X-Name-Last: Vosskamp Title: Innovation, Market Structure and the Structure of the Economy: a micro-to-macro model Abstract: This paper presents a micro-to-macro model which connects an input-output model with price-dependent input coefficients and basic elements of industrial economics. This enables the determination of the most important variables on the micro, meso and macro levels, and, in particular, the determination of market structure and economic structure. On the basis of the model, we discuss the various intra-industry and interindustry impacts of process innovation. The results show the importance of considering heterogeneity of firms and sectors. Journal: Economic Systems Research Pages: 213-232 Issue: 3 Volume: 11 Year: 1999 Keywords: Innovation, market structure, economic structure, heterogeneity, X-DOI: 10.1080/09535319900000015 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319900000015 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:11:y:1999:i:3:p:213-232 Template-Type: ReDIF-Article 1.0 Author-Name: Harry Wilting Author-X-Name-First: Harry Author-X-Name-Last: Wilting Author-Name: Wouter Biesiot Author-X-Name-First: Wouter Author-X-Name-Last: Biesiot Author-Name: Henri Moll Author-X-Name-First: Henri Author-X-Name-Last: Moll Title: Analyzing Potentials for Reducing the Energy Requirement of Households in The Netherlands Abstract: The energy requirement of households represents a useful concept in studying energy use in relation to production structures and consumption patterns. Reduction potentials of the energy requirement for households provide insight on the possibilities for reducing energy use in the whole economy. We determine reduction potentials by means of implementing energy conservation options in an input-output model for calculating the household energy requirement. The implementation of a set of technical energy conservation options results in a reduction in the energy requirement of Dutch households by 55%. The reduction potential based on a set of demand-side options is 9%. The combination of both sets of conservation options results in a reduction potential of 59%. Therefore, by combining (sets of) options, some effects are cancelled out. Journal: Economic Systems Research Pages: 233-244 Issue: 3 Volume: 11 Year: 1999 Keywords: Energy conservation, households, The Netherlands, X-DOI: 10.1080/09535319900000016 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319900000016 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:11:y:1999:i:3:p:233-244 Template-Type: ReDIF-Article 1.0 Author-Name: Kurt Kratena Author-X-Name-First: Kurt Author-X-Name-Last: Kratena Author-Name: Stefan Schleicher Author-X-Name-First: Stefan Author-X-Name-Last: Schleicher Title: Impact of Carbon Dioxide Emissions Reduction on the Austrian Economy Abstract: A linked econometric input-output (IO) model of the Austrian economy with an energy block is used in this study to assess the sectoral effects of carbon dioxide emissions reduction. The energy block and the other commodities are linked by a partitioned IO model. Energy demand is described using aggregate energy demand equations, by activities and subdemand systems of the translog type for different fuel types. The conversion of energy is modelled using an IO model of the energy sector. Measures for carbon dioxide reduction from detailed expert studies are introduced in the energy model and in the econometric model. The primary impacts are on energy demand, fuel shares and investment in new energy technologies. The simulation results of the partitioned IO model show different impacts on gross output, GDP and employment. Journal: Economic Systems Research Pages: 245-261 Issue: 3 Volume: 11 Year: 1999 Keywords: Partitioned input-output model, energy input-output analysis, energy demand functions, carbon dioxide emissions reduction, X-DOI: 10.1080/09535319900000017 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319900000017 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:11:y:1999:i:3:p:245-261 Template-Type: ReDIF-Article 1.0 Author-Name: Mikulas Luptacik Author-X-Name-First: Mikulas Author-X-Name-Last: Luptacik Author-Name: Bernhard Bohm Author-X-Name-First: Bernhard Author-X-Name-Last: Bohm Title: A Consistent Formulation of the Leontief Pollution Model Abstract: We consider the environmental Leontief model, which is an input-output model augmented by pollution-generation and pollution-abatement sectors. Two formulations of this model, dating back to Leontief's work in 1970, can be found in the literature. One formulation treats an exogenously given vector of the tolerated level of pollutants (environmental standards) as a negative variable on the right-hand side of the model. The other formulation supposes that each industry eliminates a given proportion of the pollution that it creates, so that the proportions of gross pollutants which are subject to treatment by each sector enter as given parameters. Even in the case when the levels of production and abatement in the two different model formulations are equal, the solutions of the dual or price model are different for cases where some net pollution is left untreated. First, the analytical relationship between the two price models is established. Secondly, both models formulated in a linear programming framework are extended by imposing emission charges (effluent taxes) for untreated pollution. Finally, it will be shown how to estimate the level of emission charges for both model formulations such that they provide the same levels of production and abatement, as well as the same shadow prices. This is illustrated by a numerical example. Journal: Economic Systems Research Pages: 263-276 Issue: 3 Volume: 11 Year: 1999 Keywords: Environmental standards, emission charges, linear programming, shadow prices, X-DOI: 10.1080/09535319900000018 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319900000018 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:11:y:1999:i:3:p:263-276 Template-Type: ReDIF-Article 1.0 Author-Name: Bjarne Madsen Author-X-Name-First: Bjarne Author-X-Name-Last: Madsen Author-Name: Chris Jensen-Butler Author-X-Name-First: Chris Author-X-Name-Last: Jensen-Butler Title: Make and Use Approaches to Regional and Interregional Accounts and Models Abstract: Institutional, or sector-by-sector input-output tables have traditionally been used in regional and interregional modelling. This paper examines the origins of this tradition and argues instead, both theoretically and empirically, for the integration of make and use submodels within models of production, demand and interregional trade, outlining the manner in which they can be integrated. Further, it is argued that structural rather than reduced-form models represent a sounder theoretical base. Finally, a Danish interregional model (LINE) based on a social accounting matrix framework that employs these principles is presented. The paper also deals with the issue of data construction at the regional and interregional levels, based on the make and use approach. It is argued that when data are constructed at a low level of sectoral and spatial aggregation under accounting consistency constraints, data quality and validity are high. Journal: Economic Systems Research Pages: 277-300 Issue: 3 Volume: 11 Year: 1999 Keywords: Make and use, interregional trade, commodity balance, regional accounts, X-DOI: 10.1080/09535319900000019 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319900000019 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:11:y:1999:i:3:p:277-300 Template-Type: ReDIF-Article 1.0 Author-Name: Jose Miguel Albala-Bertrand Author-X-Name-First: Jose Miguel Author-X-Name-Last: Albala-Bertrand Title: Structural Change in Chile: 1960-90 Abstract: This paper attempts to analyze compositional structural change in Chile, especially during the period around 1974-90, when the most overt 'neo-liberal' experiment was forced on the country's economy and society. The main conclusion is that, while the service sector has moved in the correct direction, setting up important industries for the dynamic development of the country, the manufacturing sector has not performed equally well. The manufacturing sector has significantly shrunk its most sophisticated base, and relies mostly on traditional manufacturing that grows sluggishly. Export expansion is in manufacturing still a small proportion of exports. The primary sector is still the main export earner, but has significantly diversified. It appears that the economy has not moved fast enough towards, and does not appear to be geared by, the type of exports that may sustain a dynamic industrial development, based on external markets. Journal: Economic Systems Research Pages: 301-320 Issue: 3 Volume: 11 Year: 1999 Keywords: Structural change, manufacturing, Chile, X-DOI: 10.1080/09535319900000020 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319900000020 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:11:y:1999:i:3:p:301-320 Template-Type: ReDIF-Article 1.0 Author-Name: AndrÁ Simonovits Author-X-Name-First: AndrÁ Author-X-Name-Last: Simonovits Title: Linear Decentralized Control with Expectations Abstract: In this paper, we consider a decentralized discrete-time control model with expectations. There are as many decision-makers as scalar state (and control) variables, and each decision-maker forms an expectation on the impact that affects him/her. Using rational and naive expectations, we describe the stability conditions of the alternative expectations. Our results generalized earlier ones by Metzler and Lovell, from an inventory control model to an abstract model, and solve the problem of the generation of a feasible normal path presented by Kornai and Martos. Journal: Economic Systems Research Pages: 321-330 Issue: 3 Volume: 11 Year: 1999 Keywords: Rational expectations, naive expectations, control models, X-DOI: 10.1080/09535319900000021 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319900000021 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:11:y:1999:i:3:p:321-330 Template-Type: ReDIF-Article 1.0 Author-Name: Bart Verspagen Author-X-Name-First: Bart Author-X-Name-Last: Verspagen Title: Book Reviews Abstract: Journal: Economic Systems Research Pages: 331-333 Issue: 3 Volume: 11 Year: 1999 X-DOI: 10.1080/09535319900000022 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319900000022 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:11:y:1999:i:3:p:331-333 Template-Type: ReDIF-Article 1.0 Author-Name: Roy Boyd Author-X-Name-First: Roy Author-X-Name-Last: Boyd Title: Book Reviews Abstract: Journal: Economic Systems Research Pages: 333-334 Issue: 3 Volume: 11 Year: 1999 X-DOI: 10.1080/09535319900000023 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319900000023 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:11:y:1999:i:3:p:333-334 Template-Type: ReDIF-Article 1.0 Author-Name: Kati Weber Author-X-Name-First: Kati Author-X-Name-Last: Weber Title: Book Reviews Abstract: Journal: Economic Systems Research Pages: 334-335 Issue: 3 Volume: 11 Year: 1999 X-DOI: 10.1080/09535319900000024 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319900000024 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:11:y:1999:i:3:p:334-335 Template-Type: ReDIF-Article 1.0 Author-Name: Karen Polenske Author-X-Name-First: Karen Author-X-Name-Last: Polenske Title: Wassily W. Leontief, 1905-99 Abstract: Journal: Economic Systems Research Pages: 341-348 Issue: 4 Volume: 11 Year: 1999 X-DOI: 10.1080/09535319900000025 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319900000025 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:11:y:1999:i:4:p:341-348 Template-Type: ReDIF-Article 1.0 Author-Name: Pirkko Aulin-Ahmavaara Author-X-Name-First: Pirkko Author-X-Name-Last: Aulin-Ahmavaara Title: Effective Rates of Sectoral Productivity Change Abstract: In effective rates of sectoral productivity change, some of the inputs are treated as produced. Here, this is extended to cover all the inputs. All the sectoral rates of productivity growth based on a static input-output (IO) framework are shown to be equal to the corresponding rates of decrease in the production price. For the direct rate, all the input prices are treated as exogenous constants. For the effective rates, prices of the inputs, which are treated as produced, are determined by production technology. The fully effective rate is derived from the price equations of the closed dynamic IO model. It is equal to the rate of decrease in the production price when the prices of all inputs, human capital and human time included, depend on production technology. The overall rate, obtained as a weighted sum of the fully effective sectoral rates, is equal to the rate of growth in the growth potential of the economy. Journal: Economic Systems Research Pages: 349-363 Issue: 4 Volume: 11 Year: 1999 Keywords: Productivity, human capital, dynamic input-output model, X-DOI: 10.1080/09535319900000026 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319900000026 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:11:y:1999:i:4:p:349-363 Template-Type: ReDIF-Article 1.0 Author-Name: Graham Pyatt Author-X-Name-First: Graham Author-X-Name-Last: Pyatt Title: Some Relationships between T-Accounts, Input-Output Tables and Social Accounting Matrices Abstract: Some relationships between the T-accounting format for presenting commodity balances; input-output (IO) tables; and social accounting matrices are discussed in this paper. The starting point is to recognize that IO tables do not contain all the information that is needed to complete a social accounting matrix (SAM), or, therefore, for the modelling of phenomena that depend on having a fully articulated SAM, such as the interdependence of the distribution of income and the structure of production. There is a need, therefore, to establish the character of the extra information that is required and this can be achieved by imposing the requirement that a SAM should be consistent with the basic cash identity that is fundamental to all social accounting. A second agendum is to develop the argument that, while T-accounts can, in principle, provide a database equivalent to that of a SAM, in practice, they are typically found to be an imperfect substitute. It is important, therefore, in designing a database, to go beyond the confines of an (extended) IO system and T-accounts. SAMs provide an appropriate framework for doing so. Journal: Economic Systems Research Pages: 365-387 Issue: 4 Volume: 11 Year: 1999 Keywords: (Extended) input-output tables, national accounts, social accounting matrices (SAMs), X-DOI: 10.1080/09535319900000027 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319900000027 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:11:y:1999:i:4:p:365-387 Template-Type: ReDIF-Article 1.0 Author-Name: Rolando Alcala Author-X-Name-First: Rolando Author-X-Name-Last: Alcala Author-Name: Gabrielle Antille Author-X-Name-First: Gabrielle Author-X-Name-Last: Antille Author-Name: Emilio Fontela Author-X-Name-First: Emilio Author-X-Name-Last: Fontela Title: Technical Change in the Private Consumption Converter Abstract: The analysis of technological change is centered on the study of the evolution of technical coefficients in the input-output table. Complementary to this analysis, the household consumption expenditure matrix, relating consumption by commodities to consumption by purpose or by function, also incorporates some other aspects of technological change. Thus, the evolution in time of the coefficients of this consumption expenditure matrix will portray technological processes, implying substitutions between commodities to satisfy the different functions The substitution between consumption expenditure by functions is also to be taken into consideration, because it can influence, together with technological change, the use of commodities in the final demand. For Switzerland, a 1980-89 time series of household consumption expenditure matrices with 37 commodities and 58 functional consumption categories has been estimated using data from consumer expenditure surveys. In this paper, instruments generally applied to the analysis of changes in input-output technical coefficients are extended to these matrices, including methods that deal with biproportional processes of substitution. Journal: Economic Systems Research Pages: 389-400 Issue: 4 Volume: 11 Year: 1999 Keywords: Technical change, private consumption converter, biproportional adjustments, X-DOI: 10.1080/09535319900000028 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319900000028 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:11:y:1999:i:4:p:389-400 Template-Type: ReDIF-Article 1.0 Author-Name: Terry Barker Author-X-Name-First: Terry Author-X-Name-Last: Barker Title: Achieving a 10% Cut in Europe's Carbon Dioxide Emissions using Additional Excise Duties: Coordinated, Uncoordinated and Unilateral Action using the Econometric Model E3ME Abstract: Coordinated, uncoordinated and unilateral policies to reduce carbon dioxide emissions by 10% in 11 member states of the European Union (EU) by 2010 are compared with unilateral policies in each member state. The paper presents the results from four projections using a large-scale, integrated, regionalized E3 model of the EU (not a general equilibrium model) estimated on time series, cross-section data for 1968—93 with international trade treated as between each member state and a European transport and distribution network. The 10% reduction is achieved by additional excise duties incremented every year from 1999 to 2010, according to the carbon contents of fuels, with special treatment of electricity (taxed on outputs not inputs) and with revenues recycled via reductions in employers' social security contributions. Multilateral coordinated policies require a common tax rate of 156 Ecus per tonne carbon (1999 prices), which rises to an average of 162 Ecu/tonne, with a wide range between regions when policies are uncoordinated. All the tax shift projections show double dividends of emission reduction and employment gain for all member states. Unilateral policies do not show much carbon leakage and they show smaller gains for output and employment. The results are compared with those from a general equilibrium model (GEM-E3), tackling the same topic. Journal: Economic Systems Research Pages: 401-422 Issue: 4 Volume: 11 Year: 1999 Keywords: Large-scale energy-environment-economy modelling, carbon tax, European Union, multilateral coordinated tax policy, X-DOI: 10.1080/09535319900000029 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319900000029 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:11:y:1999:i:4:p:401-422 Template-Type: ReDIF-Article 1.0 Author-Name: Kakali Mukhopadhyay Author-X-Name-First: Kakali Author-X-Name-Last: Mukhopadhyay Author-Name: Debesh Chakraborty Author-X-Name-First: Debesh Author-X-Name-Last: Chakraborty Title: India's Energy Consumption Changes during 1973/74 to 1991/92 Abstract: The global energy crisis in the 1970s and early 1980s had adverse economic impacts in all oil-importing countries, including India. The objective of the present paper is to analyze energy consumption changes that have taken place in the Indian economy during 1973174 to 1983184 and 1983184 to 1991192, and the factors responsible for these changes. We develop a structural decomposition analysis in which the energy consumption changes are the result of the following six different factors: technical changes; changes in the final demand structure; changes in the interaction term of technical changes and final demand structure; changes in energy exports; changes in energy imports; changes in energy change in stock. Then, we separate the technical changes and final demand structure again, which identifies explicitly the effects of energy consumption. Journal: Economic Systems Research Pages: 423-438 Issue: 4 Volume: 11 Year: 1999 Keywords: Structural decomposition analysis, energy consumption, India, X-DOI: 10.1080/09535319900000030 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319900000030 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:11:y:1999:i:4:p:423-438 Template-Type: ReDIF-Article 1.0 Author-Name: Stefano Casini Benvenuti Author-X-Name-First: Stefano Casini Author-X-Name-Last: Benvenuti Author-Name: Giandemetrio Marangoni Author-X-Name-First: Giandemetrio Author-X-Name-Last: Marangoni Title: Infrastructure and Performance of the Italian Economic System Abstract: This paper aims to analyze the consequences for the Italian economy of the recently started process of modernization and extension of the country's infrastructure. The planned measures are expected to increase the competitiveness of Italian businesses, and to improve the quality of life. In the short term, investments in infrastructure will increase the construction sector's production and, consequently, activate income and employment multipliers. The Italian economic system being highly differentiated from a territorial viewpoint, the impact of new investments on its economic system has been analyzed by means of a biregional model that accounts for the peculiar productive structure of the 20 Italian regions. Journal: Economic Systems Research Pages: 439-455 Issue: 4 Volume: 11 Year: 1999 Keywords: Infrastructure, Italy, regional input-output model, X-DOI: 10.1080/09535319900000031 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319900000031 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:11:y:1999:i:4:p:439-455 Template-Type: ReDIF-Article 1.0 Author-Name: Ali Bayar Author-X-Name-First: Ali Author-X-Name-Last: Bayar Title: Book Review Abstract: Journal: Economic Systems Research Pages: 457-457 Issue: 4 Volume: 11 Year: 1999 X-DOI: 10.1080/09535319900000032 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319900000032 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:11:y:1999:i:4:p:457-457 Template-Type: ReDIF-Article 1.0 Author-Name: Karen Polenske Author-X-Name-First: Karen Author-X-Name-Last: Polenske Title: Annual Report of the IIOA, 1998 Abstract: Journal: Economic Systems Research Pages: 459-464 Issue: 4 Volume: 11 Year: 1999 X-DOI: 10.1080/09535319900000033 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535319900000033 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:11:y:1999:i:4:p:459-464 Template-Type: ReDIF-Article 1.0 Author-Name: Robert Grubbstrom Author-X-Name-First: Robert Author-X-Name-Last: Grubbstrom Author-Name: Ou Tang Author-X-Name-First: Ou Author-X-Name-Last: Tang Title: An Overview of Input-Output Analysis Applied to Production-Inventory Systems Abstract: Input-Output Analysis, together with the Laplace transform, have been applied to multi-level, multi-period production-inventory systems in a number of papers. This article gives a historical overview of the areas involved in these studies. It is shown that the input and output matrices as well as the Leontief inverse can be generalised to include timing properties for the inputs by means of the Laplace transform. The consequent advantages are exemplified in different production models, treating, for instance, capacity requirements and safety stock problems. The main literature in this field concerns assembly systems, but the approach is easily applicable to process industries with a divergent material flow or when feedback is essential. Journal: Economic Systems Research Pages: 3-25 Issue: 1 Volume: 12 Year: 2000 Keywords: Laplace Transform, Multi-LEVEL Systems, Production-INVENTORY Systems, X-DOI: 10.1080/095353100111254 File-URL: http://www.tandfonline.com/doi/abs/10.1080/095353100111254 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:12:y:2000:i:1:p:3-25 Template-Type: ReDIF-Article 1.0 Author-Name: Clopper Almon Author-X-Name-First: Clopper Author-X-Name-Last: Almon Title: Product-to-Product Tables via Product-Technology with No Negative Flows Abstract: This paper presents and evaluates a way of making product-to-product tables from Use and Make matrices that are of immediate relevance to any statistical office that makes input-output tables. Two ways of making a product-to-product table are in common practice: one based on the product-technology assumption and the other on the industry-technology assumption. The industry-technology assumption is recognized as highly implausible but is often used because the product-technology assumption frequently leads to small negative flows which make no economic sense. This paper shows how a slight adjustment in the product-technology assumption leads to an algorithm that is certain to avoid negative flows yet keeps close to the spirit of the product-technology idea. Some details of the application of this method to the USA table for 1992 are reported. Similar applications to every American table since 1958 have given consistently sensible results. A computer program for the method is available. Journal: Economic Systems Research Pages: 27-43 Issue: 1 Volume: 12 Year: 2000 Keywords: Product-TO-PRODUCT Input-OUTPUT Tables, Product Technology, Symmetric Input-OUTPUT Tables, Industry Technology, X-DOI: 10.1080/095353100111263 File-URL: http://www.tandfonline.com/doi/abs/10.1080/095353100111263 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:12:y:2000:i:1:p:27-43 Template-Type: ReDIF-Article 1.0 Author-Name: Shuntaro Shishido Author-X-Name-First: Shuntaro Author-X-Name-Last: Shishido Author-Name: Makoto Nobukuni Author-X-Name-First: Makoto Author-X-Name-Last: Nobukuni Author-Name: Kazumi Kawamura Author-X-Name-First: Kazumi Author-X-Name-Last: Kawamura Author-Name: Takahiro Akita Author-X-Name-First: Takahiro Author-X-Name-Last: Akita Author-Name: Shunichi Furukawa Author-X-Name-First: Shunichi Author-X-Name-Last: Furukawa Title: An International Comparison of Leontief Input-Output Coefficients and its Application to Structural Growth Patterns Abstract: Empirical sectoral analyses of a standard development pattern have focused upon changes in the value added, disregarding the structural changes in intermediate input. In a more comprehensive approach to the production function, the present paper analyses both sectoral intermediate inputs and the value added by using 45 input-output tables to discover a standard pattern of the changes in the input-output coefficients as an economy develops. The major findings are first a U-shape pattern of the average value added ratio and, conversely, an inverse U-shape pattern of the average intermediate input ratio. Secondly, as compared with principal input coefficients that are broadly stable, supplementary input coefficients exhibit the non-linear trends of an inverse U shape contributed by a rising trend in agriculture in the early stages, and a growing energy cost in most sectors, although this is partly offset by mild U shapes of transport and distribution costs. A similar inverse U-shape pattern is implied for the Leontief multiplier. Journal: Economic Systems Research Pages: 45-64 Issue: 1 Volume: 12 Year: 2000 Keywords: Leontief Multiplier, Primary Input, Principal Input, Supporting Input, Standard Pattern Of Development, X-DOI: 10.1080/095353100111272 File-URL: http://www.tandfonline.com/doi/abs/10.1080/095353100111272 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:12:y:2000:i:1:p:45-64 Template-Type: ReDIF-Article 1.0 Author-Name: Oscar De Juan Author-X-Name-First: Oscar Author-X-Name-Last: De Juan Author-Name: Eladio Febrero Author-X-Name-First: Eladio Author-X-Name-Last: Febrero Title: Measuring Productivity from Vertically Integrated Sectors Abstract: There are many ways to measure productivity. The choice will depend on the suitability of each index to the main purpose the researcher has in mind. Whenever we are interested in 'competitiveness', the proper measure will be the inverse of the total labour embodied in one unit of final product; or, what amounts to the same, the labour employed in the vertically integrated sector corresponding to each final good. A weighted mean of these yields an index of aggregate productivity suitable for measuring social welfare. Another index of aggregate productivity (this one related to the profit rate and potential growth) coincides with the inverse of the maximum eigenvalue of the 'socio-technical matrix'. These indices are computed for the Spanish economy and compared with more conventional ones. Journal: Economic Systems Research Pages: 65-82 Issue: 1 Volume: 12 Year: 2000 Keywords: Productivity, Vertically Integrated Sectors, Labour Values, Prices Of Production, X-DOI: 10.1080/095353100111281 File-URL: http://www.tandfonline.com/doi/abs/10.1080/095353100111281 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:12:y:2000:i:1:p:65-82 Template-Type: ReDIF-Article 1.0 Author-Name: Julio Sanchez-Choliz Author-X-Name-First: Julio Author-X-Name-Last: Sanchez-Choliz Author-Name: Rosa Duarte Author-X-Name-First: Rosa Author-X-Name-Last: Duarte Title: The Economic Impacts of Newly Irrigated Areas in the Ebro Valley Abstract: This paper uses regional input-output tables to analyse the long-term impact resulting from the implementation of the newly irrigated areas provided for under the terms of the Ebro Basin Hydrological Plan. We have described the whole process by way of two consecutive stages. In the first, where the final demand is fixed, we use a demand-driven input-output model and we incorporate technical change through the reduction of the coefficients. In the second, the output of all sectors increases, with the increases in the vector of output being proportional to the forward linkages vector of the Agriculture sector. In this stage, our objective is to obtain a final demand vector that ensures that the agricultural value added increases to a prescribed value of v 1 *. Whilst the results demonstrate the positive effects of the transformation, they also reveal effects of a very different character in each sector. Thus, the Agriculture, Livestock and Agri-food industry sectors show significant increases in their gross outputs caused by the forward effects, whilst the Energy, Metal and Chemicals sectors reduce their outputs. These results shed light on the contradictory nature of the processes of development and technical change. Journal: Economic Systems Research Pages: 83-98 Issue: 1 Volume: 12 Year: 2000 Keywords: Input-OUTPUT Model, Technical Change, Agricultural Linkages, Economic Impact, X-DOI: 10.1080/095353100111290 File-URL: http://www.tandfonline.com/doi/abs/10.1080/095353100111290 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:12:y:2000:i:1:p:83-98 Template-Type: ReDIF-Article 1.0 Author-Name: Bernadette Andreosso-O'Callaghan Author-X-Name-First: Bernadette Author-X-Name-Last: Andreosso-O'Callaghan Author-Name: Guoqiang Yue Author-X-Name-First: Guoqiang Author-X-Name-Last: Yue Title: An Analysis of Structural Change in China using Biproportional Methods Abstract: Traditional IO techniques have been used and applied in detail to the case of the Chinese economy with a view to describing and analysing the gradual, albeit radical, transformation of the Chinese industrial fabric since the beginning of the economic reforms. Using a Biproportional Filter, our study has a threefold objective: to measure and analyse structural change that has taken place in the Chinese manufacturing sector since 1985; to highlight those industries that have been most responsible for the change; and to explain the reasons for these changes. Journal: Economic Systems Research Pages: 99-111 Issue: 1 Volume: 12 Year: 2000 Keywords: Structural Change, Chinese Industrial System, Biproportional Filter, X-DOI: 10.1080/095353100111308 File-URL: http://www.tandfonline.com/doi/abs/10.1080/095353100111308 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:12:y:2000:i:1:p:99-111 Template-Type: ReDIF-Article 1.0 Author-Name: Ali Reza Jalili Author-X-Name-First: Ali Reza Author-X-Name-Last: Jalili Title: Comparison of Two Methods of Identifying Input-Output Coefficients for Exogenous Estimation Abstract: Input-output (IO) updating research indicates substantial improvements in the forecasts when some of the coefficients have been exogenously estimated and included in the updating process. Several methods for identifying the appropriate subsets have been proposed. The present paper attempts to assess the relative performances of two such approaches: 'the largest coefficients' and 'the most important parameters' criteria. Utilizing these criteria, a set of coefficients from the 1966 IO table of the former Soviet Union were selected and exogenously determined. The remaining coefficients were updated to 1972 by means of naive, RAS, and Lagrangian techniques. Comparison of the results with the 1972 benchmark table provided the desired answers. Journal: Economic Systems Research Pages: 113-129 Issue: 1 Volume: 12 Year: 2000 Keywords: Lagrangian, Non Survey Updating, Exogenous Information, X-DOI: 10.1080/095353100111317 File-URL: http://www.tandfonline.com/doi/abs/10.1080/095353100111317 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:12:y:2000:i:1:p:113-129 Template-Type: ReDIF-Article 1.0 Author-Name: Heinz Kurz Author-X-Name-First: Heinz Author-X-Name-Last: Kurz Author-Name: Christian Lager Author-X-Name-First: Christian Author-X-Name-Last: Lager Title: Introduction: Input-Output Analysis and Classical Economic Theory Abstract: Journal: Economic Systems Research Pages: 139-140 Issue: 2 Volume: 12 Year: 2000 X-DOI: 10.1080/09535310050005653 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310050005653 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:12:y:2000:i:2:p:139-140 Template-Type: ReDIF-Article 1.0 Author-Name: William Baumol Author-X-Name-First: William Author-X-Name-Last: Baumol Title: Leontief's Great Leap Forward: Beyond Quesnay, Marx and von Bortkiewicz Abstract: Wassily Leontief's input-output analysis is often interpreted simply as a logical next step in the chain of ideas from Quesnay to Marx to von Bortkiewicz, the last of these having been Leontief's thesis adviser in Berlin. Here, it is shown that input-output is far more than that. Unlike any predecessor, it is a flexible model with widely varied applications that permits direct empirical evaluation. This is illustrated by application to net energy calculations, showing that the normal evaluation methods that ignore input-output considerations probably overestimate by 20 to 60% the net energy yield of projects designed to save energy. Journal: Economic Systems Research Pages: 141-152 Issue: 2 Volume: 12 Year: 2000 Keywords: Interdependence Models, Energy Conservation, Net Energy Studies, X-DOI: 10.1080/09535310050005662 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310050005662 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:12:y:2000:i:2:p:141-152 Template-Type: ReDIF-Article 1.0 Author-Name: Heinz Kurz Author-X-Name-First: Heinz Author-X-Name-Last: Kurz Author-Name: Neri Salvadori Author-X-Name-First: Neri Author-X-Name-Last: Salvadori Title: 'Classical' Roots of Input-Output Analysis: A Short Account of its Long Prehistory Abstract: This paper discusses the roots of input-output analysis in 'classical' economics. The authors considered include Petty and Cantillon; Quesnay, the physiocrats and their critic Isnard; Smith, Ricardo, Torrens and Dmitriev; Marx, von Bortkiewicz and von Charasoff; Leontief; and Remak. It is argued that, in terms of method and content, input-output analysis is akin to the classical approach to the theory of production, distribution and relative prices in that (i) it requires all magnitudes to be observable and (ii) starts essentially from the same set of data. It is shown that many important modern concepts have been anticipated by the earlier authors. The prehistory of input-output analysis is also meant to provide new perspectives on potential future developments of the field. Journal: Economic Systems Research Pages: 153-179 Issue: 2 Volume: 12 Year: 2000 Keywords: Circular Flow, Classical Economics, Reproduction Surplus Product, Value And Distribution, X-DOI: 10.1080/09535310050005671 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310050005671 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:12:y:2000:i:2:p:153-179 Template-Type: ReDIF-Article 1.0 Author-Name: Albert Steenge Author-X-Name-First: Albert Author-X-Name-Last: Steenge Title: The Rents Problem in the Tableau Economique : Revisiting the Phillips Model Abstract: A number of efforts have been made so far to transcribe Francois Quesnay's Tableau Economique into a modern input-output framework. However, the transcriptions available at present have not been generally accepted. A point of serious discussion has been the fixed coefficients assumption, which dates back to the model proposed by Phillips in 1955. Especially regarding the analysis of rents formation and proprietors preferences, this assumption is at odds with basic physiocratic thought. In this paper a general solution is proposed to the problem of modelling the rents in an input-output context. The method suggests a general approach, where the physiocratic view is a special case that identifies productivity with only one sector. Journal: Economic Systems Research Pages: 181-197 Issue: 2 Volume: 12 Year: 2000 Keywords: Tableau Economique, Phillips Model, Rents Problem, X-DOI: 10.1080/09535310050005680 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310050005680 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:12:y:2000:i:2:p:181-197 Template-Type: ReDIF-Article 1.0 Author-Name: Christian Gehrke Author-X-Name-First: Christian Author-X-Name-Last: Gehrke Title: Alfred Kahler's Die Theorie der Arbeiterfreisetzung durch die Maschine : An Early Contribution to the Analysis of the Impact of Automation on Workers Abstract: This paper provides a critical assessment of Alfred Kahler's pioneering contribution to the analysis of the impact of automation on workers in his 1932 dissertation thesis Die Theorie der Arbeiterfreisetzung durch die Maschine (The theory of the displacement of the worker by the machine). Kahler's analysis is shown to be an elaboration on Ricardo's and Marx's approach to the analysis of the labour displacement and compensation process. It is also shown that the arithmetical 'circulation schemes' developed by Kahler can be interpreted as an early formulation of a closed (static) input-output model. In addition, the paper also examines Kahler's rudimentary discussion of the associated price model and of the choice of technique problem. Journal: Economic Systems Research Pages: 199-214 Issue: 2 Volume: 12 Year: 2000 Keywords: Classical Price Models, Precursors Of Input-OUTPUT Analysis, Technological Unemployment, X-DOI: 10.1080/09535310050005699 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310050005699 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:12:y:2000:i:2:p:199-214 Template-Type: ReDIF-Article 1.0 Author-Name: Andras Brody Author-X-Name-First: Andras Author-X-Name-Last: Brody Title: The Monetary Multiplier Abstract: After modelling the circulation of money as a Markov chain, a special multiplier is set up, explained and investigated. It describes, in mathematical terms, the enlivening course of new money, or the propagation of a monetary injection into a given economy, which David Hume inspected in his famous essay. Some explanation is given to why he considered it, justly, as a transitory phenomenon. Journal: Economic Systems Research Pages: 215-219 Issue: 2 Volume: 12 Year: 2000 Keywords: Equilibrium, Ergodic Properties, Circulation Of Money, X-DOI: 10.1080/09535310050005707 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310050005707 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:12:y:2000:i:2:p:215-219 Template-Type: ReDIF-Article 1.0 Author-Name: Ian Steedman Author-X-Name-First: Ian Author-X-Name-Last: Steedman Title: Income Distribution, Foreign Trade and the Value-Added Vector Abstract: Whilst input-output analysts often treat the value-added vector as a fairly simple, straightforward component of input-output studies, modern 'classical' economics tells us that it is far from simple. This will be developed, both for a closed economy and for an economy using foreign produced inputs. Journal: Economic Systems Research Pages: 221-230 Issue: 2 Volume: 12 Year: 2000 Keywords: Fixed Capital, Foreign Trade, Income Distribution, Value-ADDED Coefficients, X-DOI: 10.1080/09535310050005716 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310050005716 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:12:y:2000:i:2:p:221-230 Template-Type: ReDIF-Article 1.0 Author-Name: Christian Lager Author-X-Name-First: Christian Author-X-Name-Last: Lager Title: Production, Prices and Time: A Comparison of Some Alternative Concepts Abstract: This paper compares alternative concepts of production and prices with a special emphasis on time. First, it is demonstrated that the point-input point-output representation of processes used in von Neumann-Sraffa models is not restrictive and can be derived from general flow-input flow-output processes. Second, the concept of long-period positions, which can be traced back to the work of the classical authors, is discussed. Third, the von Neumann-Sraffa approach is compared with the neo-Austrian model and the flow-fund model developed by Hicks and Georgescu-Roegen respectively. It turns out that these latter two models are, at best, a special case of the former. Finally, some problems and intricacies concerning observable input-output coefficients are discussed and, as an alternative, a possibly applicable method to determine coefficients for general flow-input flow-output processes is presented. Journal: Economic Systems Research Pages: 231-253 Issue: 2 Volume: 12 Year: 2000 Keywords: Sraffa Von Neumann, (NEO) Austrian Production Theory, Georgescu Roegen'S Flow-FUND Approach, X-DOI: 10.1080/09535310050005725 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310050005725 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:12:y:2000:i:2:p:231-253 Template-Type: ReDIF-Article 1.0 Author-Name: Heinz Kurz Author-X-Name-First: Heinz Author-X-Name-Last: Kurz Author-Name: Neri Salvadori Author-X-Name-First: Neri Author-X-Name-Last: Salvadori Title: The Dynamic Leontief Model and the Theory of Endogenous Growth Abstract: This paper shows that the dynamic Leontief model can be interpreted as a linear model of endogenous growth. The long-term rate of growth is determined within the economic system - either as the outcome of the saving and investment behaviour of agents or as the outcome of some planner's maximization of some objective function. Journal: Economic Systems Research Pages: 255-265 Issue: 2 Volume: 12 Year: 2000 Keywords: Dynamic Leontief Model, Endogenous Growth, Saving Investment, X-DOI: 10.1080/09535310050005734 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310050005734 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:12:y:2000:i:2:p:255-265 Template-Type: ReDIF-Article 1.0 Author-Name: Richard Weisskoff Author-X-Name-First: Richard Author-X-Name-Last: Weisskoff Title: Missing Pieces in Ecosystem Restoration: The Case of the Florida Everglades Abstract: The largest ecosystem restoration in the world-a $7.8 billion rescue package-is now beginning in the Florida Everglades. This paper examines both the economic impact of the restoration itself and those pieces that are 'missing' from the official project analysis; namely, increased tourism, urban construction, in-migration, and changing agricultural patterns. These pieces comprise a variety of scenarios that are tested for a 45 year planning period with an augmented input-output model derived from a regional SAM. The new output and employment generated by the 'missing pieces', which are small relative to the vast economic base of the region, do represent a considerable increase over the annual growth, especially by the year 2045. We conclude with a discussion of ways in which a growing regional economy might be reconciled with ecosystem restoration. Journal: Economic Systems Research Pages: 271-303 Issue: 3 Volume: 12 Year: 2000 Keywords: Ecosystem Restoration, Economic Impact Analysis, Regional Economic Models, Florida Everglades, X-DOI: 10.1080/09535310050120899 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310050120899 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:12:y:2000:i:3:p:271-303 Template-Type: ReDIF-Article 1.0 Author-Name: Christian Lutz Author-X-Name-First: Christian Author-X-Name-Last: Lutz Title: NO x Emissions and the Use of Advanced Pollution Abatement Techniques in West Germany Abstract: This paper concentrates on the integration of pollution abatement techniques for NO x emissions into the environmentally enlarged input-output model PANTA RHEI II for West Germany. The use of available abatement technologies is explained by emission prices, investment and technological factors for different sectors and energy carriers. Simulation runs to the year 2005 show the economic, environmental and technological effects of a tax on NO x emissions, when revenues are recycled via reductions of employers' social security contributions. A cut of emissions by almost one third against the businessas-usual level is reached. In particular, the use of advanced pollution abatement techniques and structural changes prevent negative economic effects on the macro level. Lower real wages even induce higher employment. Journal: Economic Systems Research Pages: 305-318 Issue: 3 Volume: 12 Year: 2000 Keywords: Energy-ENVIRONMENT-ECONOMY Modelling, Emission Taxesy, Abatement Technologies, X-DOI: 10.1080/09535310050120907 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310050120907 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:12:y:2000:i:3:p:305-318 Template-Type: ReDIF-Article 1.0 Author-Name: Henrik Jacobsen Author-X-Name-First: Henrik Author-X-Name-Last: Jacobsen Title: Energy Demand, Structural Change and Trade: A Decomposition Analysis of the Danish Manufacturing Industry Abstract: This paper examines the relation between trade patterns and energy consumption in manufacturing industries. An input-output decomposition method is used to decompose the change in industrial energy consumption for Denmark into six components, of which three are trade-related. Trade-induced changes in energy consumption have important implications for issues such as international distribution and regulation of energy consumption and emissions. It is shown that a structural change in foreign trade patterns can increase domestic energy demand. This is contrary, however, to what might be expected for a small industrialized country, which is presumed to export products that intensively use inputs of skilled manpower as well as research and development. Finally, calculations carried out at different levels of aggregation are compared. The findings here demonstrate the importance of large variations in energy intensities among subsectors for the calculation results. Journal: Economic Systems Research Pages: 319-343 Issue: 3 Volume: 12 Year: 2000 Keywords: Decomposition, Energy Demand, Trade, X-DOI: 10.1080/09535310050120916 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310050120916 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:12:y:2000:i:3:p:319-343 Template-Type: ReDIF-Article 1.0 Author-Name: Petr Hanel Author-X-Name-First: Petr Author-X-Name-Last: Hanel Title: R&D, Interindustry and International Technology Spillovers and the Total Factor Productivity Growth of Manufacturing Industries in Canada, 1974-1989 Abstract: The paper presents new econometric evidence on the relationship between total factor productivity growth and the R&D expenditures of Canadian manufacturing industries in the presence of interindustry and international spillovers of technology. In contrast to studies that presume that international spillovers are incorporated in imports of intermediate and/or capital equipment goods, the present paper assumes that the principal channel of transmission of new technology is foreign direct investment. Three original proxies for international spillovers use information on patenting, the size and the origin of foreign ownership in the host country and the R&D expenditures in the country of origin. The results suggest that the nexus between industry's own R&D expenditures and the TFP growth is significant and positive, especially for the process-related R&D. Domestic interindustry spillovers of new technology have a larger effect on TFP than industry's own R&D expenditures. All three proxies for international technology spillovers are associated positively and significantly with TFP growth. However, international spillovers contribute to TFP growth less than domestic interindustry spillovers and less than own process-related R&D. Journal: Economic Systems Research Pages: 345-361 Issue: 3 Volume: 12 Year: 2000 Keywords: International R & D Spillovers, Patents, Total Factor Productivity, Foreign Direct Investment, X-DOI: 10.1080/09535310050120925 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310050120925 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:12:y:2000:i:3:p:345-361 Template-Type: ReDIF-Article 1.0 Author-Name: Axel During Author-X-Name-First: Axel Author-X-Name-Last: During Author-Name: Hermann Schnabel Author-X-Name-First: Hermann Author-X-Name-Last: Schnabel Title: Imputed Interindustry Technology Flows - A Comparative SMFA Analysis Abstract: This paper shows how the pattern of an interindustry R&D flow system can be detected using a Subsystem-MFA (SMFA). The standard subsystem analysis shows the innovation spillovers of the relevant innovative sectors of a country, which are then turned into graphical form so that the sector clustering into this system can be displayed like a 'molecule' of sectors. The analysis uses the recently published input-output tables of the OECD for Germany, Japan and the United States for the beginning, the middle and the end of the 1980s. The analysis uses R&D-expenditures as an innovation-indicatorvector, published also by the OECD. The results show that there are specific patterns of interindustry imputed R&D flows that differ to some extent between the given countries. These differences can be interpreted as being due to the specific economic history of these countries. Journal: Economic Systems Research Pages: 363-375 Issue: 3 Volume: 12 Year: 2000 Keywords: Technology Flows, Innovation, Subsystem Mfa, X-DOI: 10.1080/09535310050120934 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310050120934 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:12:y:2000:i:3:p:363-375 Template-Type: ReDIF-Article 1.0 Author-Name: Ina Drejer Author-X-Name-First: Ina Author-X-Name-Last: Drejer Title: Comparing Patterns of Industrial Interdependence in National Systems of Innovation - A Study of Germany, the United Kingdom, Japan and the United States Abstract: This paper presents a quantitatively based method for comparing the structure of National Systems of Innovation (NSI). The emphasis is on technological interdependencies at the industrial level in Germany, Japan, the United Kingdom and the United States. The mapping of the interdependencies, based on input-output tables, builds on a graph theoretical model (a minimal flow analysis). R&D expenses are used as the technology indicator. The NSI framework is taken as the point of departure. It is claimed that 'history matters', through relating historical descriptions and analyses of industrialization processes to the findings of structural analyses of R&D interdependencies within the NSIs. The paper shows that the national systems tend to cluster in two main 'bulks'. One is centred around industrial chemicals and/or pharmaceuticals, and the other is centred around communication equipment, electronics etc. In most cases these clusters do not appear to be closely technologically related through embodied R&D flows, i.e. it seems appropriate to assume that two distinct technology bases are at play. Journal: Economic Systems Research Pages: 377-399 Issue: 3 Volume: 12 Year: 2000 Keywords: National Systems Of Innovation, Minimal Flow Analysis, X-DOI: 10.1080/09535310050120943 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310050120943 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:12:y:2000:i:3:p:377-399 Template-Type: ReDIF-Article 1.0 Author-Name: Michael Sonis Author-X-Name-First: Michael Author-X-Name-Last: Sonis Author-Name: J. D. Hewings Author-X-Name-First: J. D. Author-X-Name-Last: Hewings Author-Name: Jiemin Guo Author-X-Name-First: Jiemin Author-X-Name-Last: Guo Title: A New Image of Classical Key Sector Analysis: Minimum Information Decomposition of the Leontief Inverse Abstract: This paper provides a theoretical framework for the Rasmussen-Hirschman key sector analysis based on a minimum information approach. This approach introduces a separation of information about regional economic structure into two parts. In the first part, knowledge about economic structure, extracted on the basis of minimum information included in the row and column multipliers, is extracted from the Leontief inverse matrix. The second part presents the specifics of synergetic interactions between different sectors of the economy. A corresponding intensity matrix represents the strength of the fields of influence of simultaneous multiple changes. From this formulation, a minimum information decomposition of the Leontief inverse is shown to exist and applied to Chinese input-output tables for 1987 and 1990. Journal: Economic Systems Research Pages: 401-423 Issue: 3 Volume: 12 Year: 2000 Keywords: Key Sectors, Minimum Information, Intensity Matrix, China, X-DOI: 10.1080/09535310050120952 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310050120952 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:12:y:2000:i:3:p:401-423 Template-Type: ReDIF-Article 1.0 Author-Name: Josef Richter Author-X-Name-First: Josef Author-X-Name-Last: Richter Title: In memoriam: Dr Jiri Skolka, 1928-2000 Abstract: Journal: Economic Systems Research Pages: 437-438 Issue: 3 Volume: 12 Year: 2000 X-DOI: 10.1080/09535310050120970 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310050120970 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:12:y:2000:i:3:p:437-438 Template-Type: ReDIF-Article 1.0 Author-Name: Amos Golan Author-X-Name-First: Amos Author-X-Name-Last: Golan Author-Name: Stephen Vogel Author-X-Name-First: Stephen Author-X-Name-Last: Vogel Title: Estimation of Non-Stationary Social Accounting Matrix Coefficients with Supply-Side Information Abstract: Given aggregated data, a framework for estimating the entries of a social accounting matrix (SAM), or any large matrix of expenditures, trade or income flows, is developed. Under this framework it is possible to evaluate the contribution of structural and supply-side information, as well as policy variables, within the generalized context of a non-stationary SAM. Inference and diagnostic properties are developed as well. This new estimator can be viewed as a generalized maximum likelihood estimator. Stationary and non-stationary estimates of the US SAM for the years 1987-1994 together with the effects of supply-side variables are analyzed. Journal: Economic Systems Research Pages: 447-471 Issue: 4 Volume: 12 Year: 2000 Keywords: Information, Maximum Entropy, Maximum Likelihood, Social Accounting Matrix, X-DOI: 10.1080/09535310020003775 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310020003775 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:12:y:2000:i:4:p:447-471 Template-Type: ReDIF-Article 1.0 Author-Name: Jorge Alarcon Author-X-Name-First: Jorge Author-X-Name-Last: Alarcon Author-Name: Jan Van Heemst Author-X-Name-First: Jan Author-X-Name-Last: Van Heemst Author-Name: Niek De Jong Author-X-Name-First: Niek Author-X-Name-Last: De Jong Title: Extending the SAM with Social and Environmental Indicators: An Application to Bolivia Abstract: Extending economic accounts with sets of social and environmental indicators is a first step towards a more integrated analysis of aspects of sustainability problems. In this article, therefore, a proposal is made to nest social and environmental indicators into an existing economic accounting framework. The Social Accounting Matrix (SAM) is taken as a basis, because of its flexibility regarding extensions with non-monetary data addressing social and environmental concerns. The main thrust of the paper is methodological. From the discussion of methodological issues and the application to the SAM for Bolivia for the year 1989, it is concluded that it is, in principle, feasible and relatively simple to extend the SAM with the two sets of indicators. However, additional data will have to be collected to be able to address, more adequately, the problems of sustainability. Journal: Economic Systems Research Pages: 473-496 Issue: 4 Volume: 12 Year: 2000 Keywords: Social Accounting Matrix, Environment, Social Indicators, Bolivia, X-DOI: 10.1080/09535310020003784 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310020003784 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:12:y:2000:i:4:p:473-496 Template-Type: ReDIF-Article 1.0 Author-Name: Erik Dietzenbacher Author-X-Name-First: Erik Author-X-Name-Last: Dietzenbacher Author-Name: Bart Los Author-X-Name-First: Bart Author-X-Name-Last: Los Title: Structural Decomposition Analyses with Dependent Determinants Abstract: Structural decomposition techniques are used to break down the changes in one variable into the changes in its determinants. Typically, these determinants are assumed to be independent. Using the decomposition of value added growth as a prototype example, this paper examines the phenomenon that several of the determinants are not independent. The determinants are termed fully dependent if changes in one determinant cannot occur without corresponding changes in another determinant. In most empirical cases, full dependence exists between groups of determinants, not between separate determinants. It is indicated that dependencies may cause a bias in the results of decomposition analyses. An alternative to overcome this problem is proposed and the findings are illustrated by an empirical study for The Netherlands 1972-1986. Journal: Economic Systems Research Pages: 497-514 Issue: 4 Volume: 12 Year: 2000 Keywords: Structural Decomposition, Value Added Growth, Dependent Variables, X-DOI: 10.1080/09535310020003793 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310020003793 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:12:y:2000:i:4:p:497-514 Template-Type: ReDIF-Article 1.0 Author-Name: Kazumi Hitomi Author-X-Name-First: Kazumi Author-X-Name-Last: Hitomi Author-Name: Yasuhide Okuyama Author-X-Name-First: Yasuhide Author-X-Name-Last: Okuyama Author-Name: Geoffrey Hewings Author-X-Name-First: Geoffrey Author-X-Name-Last: Hewings Author-Name: Michael Sonis Author-X-Name-First: Michael Author-X-Name-Last: Sonis Title: The Role of Interregional Trade in Generating Change in the Regional Economies of Japan, 1980-1990 Abstract: An earlier analysis (Hewings et al., 1998) revealed the 'hollowing-out' process, a decrease in the level of intraregional intermediation, in the Chicago economy during the period 1975-2011. The main force underlying this structural change has been the change in regional trade patterns in a way that interregional trades across economies has replaced the local purchases of intermediate inputs. The issue addressed in this paper focuses on the decomposition of structural change into changes in interregional trade and in technology, in order to investigate the nature of structural change over time and across sectors. The empirical realization is provided by reference to a series of regional input-output tables for a nine-region division of the Japanese economy (1980-1985-1990). The results revealed that interregional trade has played a key role in determining regional output level while technology itself had a tendency to decrease further. Journal: Economic Systems Research Pages: 515-537 Issue: 4 Volume: 12 Year: 2000 Keywords: Coefficient Change, Interregional Trade, Decomposition, Japan, X-DOI: 10.1080/09535310020003801 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310020003801 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:12:y:2000:i:4:p:515-537 Template-Type: ReDIF-Article 1.0 Author-Name: Bart Los Author-X-Name-First: Bart Author-X-Name-Last: Los Title: Endogenous Growth and Structural Change in a Dynamic Input-Output Model Abstract: This paper introduces a simple dynamic input-output model, in which some of the most important properties of recent endogenous growth theory are included: innovation, knowledge spillovers, constant returns to scale at the macro level, and full employment. The wish to keep the hybrid model as tractable as possible (despite the industry detail) caused some substantial simplifications: contrary to most endogenous growth models, the model lacks an explicit microeconomic foundation and disregards any opportunity for instantaneous substitution. After the constituent equations are presented, the long-run behavior of the model is studied by a number of computer simulations for a hypothetical economy. The paper concludes with some illustrations of the potential practical power of future interindustry endogenous growth models in integrating issues like technology, investment, trade and education. Journal: Economic Systems Research Pages: 3-34 Issue: 1 Volume: 13 Year: 2001 X-DOI: 10.1080/09535310120026229 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310120026229 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:13:y:2001:i:1:p:3-34 Template-Type: ReDIF-Article 1.0 Author-Name: Elio Londero Author-X-Name-First: Elio Author-X-Name-Last: Londero Title: By-Products Abstract: This paper distinguishes between by-products of the activity and those associated with changes in the demand for another jointly-produced output. It attempts to define when one or more jointly-produced outputs would be by-products of the activity and others would be produced at the margin. The conditions are explored that are necessary for one or more jointly-produced outputs to be, or behave like, by-products of the activity. These conditions are expected to help in sorting out by-products from marginally produced outputs in the preparation of cost structures for analytic work. Journal: Economic Systems Research Pages: 35-45 Issue: 1 Volume: 13 Year: 2001 Keywords: Products, Input-OUTPUT, Joint Production, X-DOI: 10.1080/09535310120026238 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310120026238 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:13:y:2001:i:1:p:35-45 Template-Type: ReDIF-Article 1.0 Author-Name: Sherman Robinson Author-X-Name-First: Sherman Author-X-Name-Last: Robinson Author-Name: Andrea Cattaneo Author-X-Name-First: Andrea Author-X-Name-Last: Cattaneo Author-Name: Moataz El-Said Author-X-Name-First: Moataz Author-X-Name-Last: El-Said Title: Updating and Estimating a Social Accounting Matrix Using Cross Entropy Methods Abstract: The problem in estimating a social accounting matrix (SAM) for a recent year is to find an efficient and cost-effective way to incorporate and reconcile information from a variety of sources, including data from prior years. Based on information theory, the paper presents a flexible 'cross entropy' (CE) approach to estimating a consistent SAM starting from inconsistent data estimated with error, a common experience in many countries. The method represents an efficient information processing rule-using only and all information available. It allows incorporating errors in variables, inequality constraints, and prior knowledge about any part of the SAM. An example is presented, applying the CE approach to data from Mozambique, using a Monte Carlo approach to compare the CE approach to the standard RAS method and to evaluate the gains in precision from utilizing additional information. Journal: Economic Systems Research Pages: 47-64 Issue: 1 Volume: 13 Year: 2001 Keywords: Entropy, Cross Entropy, Social Accounting Matrices, X-DOI: 10.1080/09535310120026247 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310120026247 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:13:y:2001:i:1:p:47-64 Template-Type: ReDIF-Article 1.0 Author-Name: Manfred Lenzen Author-X-Name-First: Manfred Author-X-Name-Last: Lenzen Title: A Generalized Input-Output Multiplier Calculus for Australia Abstract: A static, generalized input-output framework for calculating simple multipliers is presented for Australian data. In this framework, capital investment and imports are internalized into domestic inter-industrial intermediate demand, non-square matrices are introduced in order to enable the inclusion of finer detail commodity data, and matrices in both monetary and physical units are employed. A range of labour and energy multipliers are calculated, referring to total output, final demand, final consumption, basic values, producers' prices, purchasers' prices, commodities and industries. Uncertainties of multipliers are assessed in detail, using Monte Carlo simulations. Journal: Economic Systems Research Pages: 65-92 Issue: 1 Volume: 13 Year: 2001 Keywords: Input-OUTPUT Multipliers, Uncertainty Analysis, Australia, X-DOI: 10.1080/09535310120026256 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310120026256 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:13:y:2001:i:1:p:65-92 Template-Type: ReDIF-Article 1.0 Author-Name: Thijs Ten Raa Author-X-Name-First: Thijs Ten Author-X-Name-Last: Raa Author-Name: Pierre Mohnen Author-X-Name-First: Pierre Author-X-Name-Last: Mohnen Title: The Location of Comparative Advantages on the Basis of Fundamentals Only Abstract: We propose a new way to locate the comparative advantages of two economies linked by international trade. We construct a competitive benchmark based only on the fundamentals of the two economies: endowments, preferences and technologies. The direction of trade is endogenously determined by a linear program with an input-output core. The factor contents of that trade are compared with factor endowments to test the Heckscher-Ohlin model in the presence of different technologies and preferences. We can also evaluate the gains of free bilateral trade. The model is applied to a customs union between Europe and Canada. The Heckscher-Ohlin factor abundance specialization hypothesis is supported by the data. Journal: Economic Systems Research Pages: 93-108 Issue: 1 Volume: 13 Year: 2001 Keywords: Comparative Advantage, Gains Free Trade, X-DOI: 10.1080/09535310120026265 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310120026265 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:13:y:2001:i:1:p:93-108 Template-Type: ReDIF-Article 1.0 Author-Name: Gerd Ahlert Author-X-Name-First: Gerd Author-X-Name-Last: Ahlert Title: The Economic Effects of the Soccer World Cup 2006 in Germany with Regard to Different Financing Abstract: This paper presents some results using the sport-economic simulation model SPORT. This model is based on a sport-specific input-output table for the year 1993, which has been integrated into the German INFORGE model. The performance of this model founded on the INFORUM philosophy. The results illustrate the importance of modelling sport-economic activities in deep detail, especially the integration of the system of national accounts. In addition, the results also show that it is possible to calculate the macroeconomic effects of the soccer World Cup, which may perhaps be hosted by Germany in 2006, with regard to the different financing of necessary extensions of public sports infrasfructure. Under favourable conditions-independent of the type of financing of these necessary investments-the staging of the soccer World Cup positively influences income and employment. Such calculations allow the decision-maker to estimate the opportunity costs of their decisions and can be the basis for an extended cost-benefit analysis. Journal: Economic Systems Research Pages: 109-127 Issue: 1 Volume: 13 Year: 2001 Keywords: Sport-SPECIFIC Input-OUTPUT Table, Soccer World, Sport-ECONOMIC Analysis, X-DOI: 10.1080/09535310120026274 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310120026274 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:13:y:2001:i:1:p:109-127 Template-Type: ReDIF-Article 1.0 Author-Name: Graham Pyatt Author-X-Name-First: Graham Author-X-Name-Last: Pyatt Title: Some Early Multiplier Models of the Relationship between Income Distribution and Production Structure Abstract: Early efforts to endogenize consumption and hence to model the inter-relationships between production structures and income distribution via multiplier models are reviewed in this paper. It is suggested that, unlike the multipliers in Pyatt et al. (1973), the so-called Miyazawa multipliers cannot be sustained in the context of a model of the distribution of income among institutions (households, companies, etc) i.e. the institutional distribution of income. They can, however, be sustained within a model of the distribution of income among factors, i.e. the factorial distribution of income. Both distributions are modelled by Pyatt & Round (1979) which therefore provides a more general framework for analysing the relationship between the distribution of income and the structure of production. Journal: Economic Systems Research Pages: 139-163 Issue: 2 Volume: 13 Year: 2001 Keywords: Multipliers, Social Accounting Matrices, X-DOI: 10.1080/09537320120052434 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09537320120052434 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:13:y:2001:i:2:p:139-163 Template-Type: ReDIF-Article 1.0 Author-Name: Michael Lahr Author-X-Name-First: Michael Author-X-Name-Last: Lahr Title: Reconciling Domestication Techniques, the Notion of Re-exports and Some Comments on Regional Accounting Abstract: Recent work by Jackson (1998) subtly pointed out a means of forming direct input coefficient matrices from national technology that is different from that published elsewhere. In this paper, I rationalize his approach and also point out that prior approaches may still be useful in certain applications where the phenomenon of re-exports (imports that satisfy exports) are explicit in exports accounts. In the second half of this paper, I show some means of developing regional accounts, currently being used in the US, that are more elaborate than those Jackson discussed. For example, I substitute regional shares of employment with earnings shares to obtain productivity adjusted regional output. I also suggest using available regional value added and regional labour income when producing regional Use matrices. Journal: Economic Systems Research Pages: 165-179 Issue: 2 Volume: 13 Year: 2001 Keywords: Regional Accounts, Commodity Industry, International Trade, X-DOI: 10.1080/09537320120052443 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09537320120052443 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:13:y:2001:i:2:p:165-179 Template-Type: ReDIF-Article 1.0 Author-Name: Mark De Haan Author-X-Name-First: Mark Author-X-Name-Last: De Haan Title: A Structural Decomposition Analysis of Pollution in the Netherlands Abstract: This paper reviews the results of a structural decomposition analysis in which the annual changes in a number of air pollutants and solid waste are decomposed according to their causes. The analysis in this paper is applied with the help of the so-called National Accounting Matrix including Environmental Accounts (NAMEA) for the Netherlands, covering annual data for the period 1987-1998. In a sensitivity analysis it is shown that the average of any pair of so-called 'mirror image' decomposition forms will substantially reduce the variation in the estimates. These mirror image couples are approximately just as reliable as the full average of all decomposition forms. Besides reliable results, the full average also foresees the mutual comparability between the distinguished change factors and is therefore applied in the empirical analyses presented in this paper. The results of these analyses contain the macro-economic developments, results on the industry level as well as a comprehensive overview of the origin and destination of pollution in the Dutch economy that includes the environmental consequences of consumption and international trade. Journal: Economic Systems Research Pages: 181-196 Issue: 2 Volume: 13 Year: 2001 Keywords: Structural Decomposition Analysis, National Accounting Matrix, Environmental Accounts, Namea, X-DOI: 10.1080/09537320120052452 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09537320120052452 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:13:y:2001:i:2:p:181-196 Template-Type: ReDIF-Article 1.0 Author-Name: Kenneth Reinert Author-X-Name-First: Kenneth Author-X-Name-Last: Reinert Author-Name: David Roland-Holst Author-X-Name-First: David Author-X-Name-Last: Roland-Holst Title: Industrial Pollution Linkages in North America: A Linear Analysis Abstract: In recent years, a surge of interest in the linkages between trade and the environment has occurred in the contexts of both regional and multilateral trade agreements. In this paper, we utilize a three-country, social accounting matrix (SAM) of the North American economy and data from the World Bank's Industrial Pollution Projection System (IPPS) to conduct a linear multiplier analysis of industrial pollution linkages in North America. We provide estimates of both direct and indirect inter-country effects for a detailed set of industrial pollutants. The strongest linkages occur in the petroleum, chemicals, paper, base metals, and transportation equipment sectors. Journal: Economic Systems Research Pages: 197-208 Issue: 2 Volume: 13 Year: 2001 Keywords: Nafta, Pollution, Social Accounting Matricesy, Multiplier Analysis, X-DOI: 10.1080/09537320120052461 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09537320120052461 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:13:y:2001:i:2:p:197-208 Template-Type: ReDIF-Article 1.0 Author-Name: Roman Kiedrowski Author-X-Name-First: Roman Author-X-Name-Last: Kiedrowski Title: A Turnpike Theorem in the Closed Dynamic Leontief Model with a Singular Matrix of Capital Coefficients Abstract: The paper refers to the well-known Tsukui turnpike theorem on convergence of optimal growth trajectories in the closed dynamic Leontief model to the maximum balanced growth trajectory, called turnpike. In the original proof of this theorem, the assumption that the matrix B of capital coefficients is non-singular plays an essential role. For many reasons this assumption, very convenient for theoretical analysis, is not always satisfied in input-output systems built for empirical purposes. This paper fills the gap between theory and empirical studies, presenting a proof that convergence of optimal trajectories towards the turnpike is also a characteristic feature of the closed Leontief model in the case when matrix B is singular. The general idea of the proof is based on the approximation of a singular matrix B by an infinite sequence of non-singular matrices. Journal: Economic Systems Research Pages: 209-222 Issue: 2 Volume: 13 Year: 2001 Keywords: K Eywords Optimal Growth, Turnpike Theorem, Dynamic Leontief Model, Singular Matrix, X-DOI: 10.1080/09537320120064885 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09537320120064885 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:13:y:2001:i:2:p:209-222 Template-Type: ReDIF-Article 1.0 Author-Name: Aying Liu Author-X-Name-First: Aying Author-X-Name-Last: Liu Author-Name: David Saal Author-X-Name-First: David Author-X-Name-Last: Saal Title: Structural Change in Apartheid-era South Africa: 1975-93 Abstract: This paper examines the sources of structural changes in output growth of South Africa's economy over 1975-93 using a decomposition method within the inputoutput (IO) framework for analysing output changes from a demand side perspective. It decomposes output growth into private consumption, government consumption, investment and export components and also measures the impact of import substitution and changes in intermediate input use (as indicated by changes in IO coefficients). It is found that, before 1981, overall output growth was multi-components driven with all the above components contributing positively to economic growth. However, the collapse of investment demand is by far the single largest factor contributing to the economic stagnation that categorizes the post-1981 period. Journal: Economic Systems Research Pages: 235-257 Issue: 3 Volume: 13 Year: 2001 Keywords: Output Growth, Structural Change, Decomposition, South Africa, X-DOI: 10.1080/09537320120070130 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09537320120070130 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:13:y:2001:i:3:p:235-257 Template-Type: ReDIF-Article 1.0 Author-Name: Mette Wier Author-X-Name-First: Mette Author-X-Name-Last: Wier Author-Name: Manfred Lenzen Author-X-Name-First: Manfred Author-X-Name-Last: Lenzen Author-Name: Jesper Munksgaard Author-X-Name-First: Jesper Author-X-Name-Last: Munksgaard Author-Name: Sinne Smed Author-X-Name-First: Sinne Author-X-Name-Last: Smed Title: Effects of Household Consumption Patterns on CO2 Requirements Abstract: In order to evaluate the relation between the consumption pattern of various household types and their CO2 requirements, we combine input-output tables energy flow matrices, CO2 emissions factors, and national consumer survey statistics into an integrated modelling framework, and relate differences in household types to differences in private consumption and again to differences in CO2 emissions. We identify household characteristics with a significant influence on CO2 emissions. Comparing our results with those of other studies reveals that national differences in climate and population density cause differences in the contribution to CO2 emissions. Finally, national differences in income and expenditure elasticities of both energy and CO2 are due to differences in the disparity in CO2 intensities amongst commodities and to the model's assumptions on foreign technology. Journal: Economic Systems Research Pages: 259-274 Issue: 3 Volume: 13 Year: 2001 Keywords: Co2 Emissions, Consumption Patterny, Household Characteristics, X-DOI: 10.1080/09537320120070149 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09537320120070149 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:13:y:2001:i:3:p:259-274 Template-Type: ReDIF-Article 1.0 Author-Name: Jose Euclides Cavalcanti Author-X-Name-First: Jose Euclides Author-X-Name-Last: Cavalcanti Title: Income Distributive Effects in the Brazilian Economy Abstract: Studies aiming to evaluate the structural distribution of economic impacts usually treat consumption demand as an exogenous variable. In this case, the Leontief matrix multiplier lacks the multiplier process via the consumption function that one customarily finds in a Keynesian model. To regard the consumption as a fictitious production activity is not the appropriate procedure. Instead, the Keynesian consumption function is introduced at a disaggregated level. For that, a matrix multiplier was formulated in order to combine Leontief's propagation process with the Keynesian propagation process. This matrix includes the effects of endogenous changes in consumption demand. Based on the present production structure in Brazil, the results show how the propagation effect directs the induced income towards capitalists, depriving wage earners. The model also allows for evaluation of diverse effects of the propagation process according to income and consumption coefficients by sector. Journal: Economic Systems Research Pages: 275-287 Issue: 3 Volume: 13 Year: 2001 Keywords: Miyazawa, Income Distribution, Impact Analysis, X-DOI: 10.1080/09537320120070158 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09537320120070158 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:13:y:2001:i:3:p:275-287 Template-Type: ReDIF-Article 1.0 Author-Name: Christian Bidard Author-X-Name-First: Christian Author-X-Name-Last: Bidard Author-Name: Tom Schatteman Author-X-Name-First: Tom Author-X-Name-Last: Schatteman Title: The Spectrum of Random Matrices Abstract: The Frobenius eigenvector of a positive square matrix is obtained by iterating the multiplication of an arbitrary positive vector by the matrix. Brody (1997) noticed that, when the entries of the matrix are independently and identically distributed, the speed of convergence increases statistically with the dimension of the matrix. As the speed depends on the ratio between the subdominant and the dominant eigenvalues, Brody's conjecture amounts to stating that this ratio tends to zero when the dimension tends to infinity. The paper provides a simple proof of the result. Some mathematical and economic aspects of the problem are discussed. Journal: Economic Systems Research Pages: 289-298 Issue: 3 Volume: 13 Year: 2001 Keywords: Brodyy, Dominant Eigenvalues, Frobenius, X-DOI: 10.1080/09537320120070167 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09537320120070167 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:13:y:2001:i:3:p:289-298 Template-Type: ReDIF-Article 1.0 Author-Name: Lisheng Zeng Author-X-Name-First: Lisheng Author-X-Name-Last: Zeng Title: A Property of the Leontief Inverse and its Applications to Comparative Static Analysis Abstract: We arbitrarily choose a submatrix of order 2 in the Leontief inverse matrix B . If a main diagonal element in the submatrix is a main diagonal element in B , then the determinant of the submatrix is non-negative; in particular, if the two main diagonal elements in the submatrix are all the main diagonal elements in B , then the determinant of the submatrix is greater than or equal to 1. This property can be used in the comparative static analysis for the input-output model. For example, when the change only occurs in one sectoral final demand or one corresponding row of the input coefficient matrix, which leads to a change of this sectoral gross output, the equivalent conditions that the absolute value of the rate of change of this sectoral gross output is larger than or equal to all other sectoral change rates and larger than at least one sectoral rate of change are shown. It is impossible to derive the exact results for the comparative static analysis if the property is not applied. A previous fault confirms this point. Journal: Economic Systems Research Pages: 299-315 Issue: 3 Volume: 13 Year: 2001 Keywords: Leontief Inverse, Comparative Static Analysis, Input-OUTPUT Model, X-DOI: 10.1080/09537320120070185 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09537320120070185 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:13:y:2001:i:3:p:299-315 Template-Type: ReDIF-Article 1.0 Author-Name: Michael Lahr Author-X-Name-First: Michael Author-X-Name-Last: Lahr Title: Report on the Macerata Conference Abstract: Journal: Economic Systems Research Pages: 317-318 Issue: 3 Volume: 13 Year: 2001 X-DOI: 10.1080/09537320120070194 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09537320120070194 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:13:y:2001:i:3:p:317-318 Template-Type: ReDIF-Article 1.0 Author-Name: Shigemi Kagawa Author-X-Name-First: Shigemi Author-X-Name-Last: Kagawa Author-Name: Hajime Inamura Author-X-Name-First: Hajime Author-X-Name-Last: Inamura Title: A Structural Decomposition of Energy Consumption Based on a Hybrid Rectangular Input-Output Framework: Japan's Case Abstract: This paper proposes an I-O SDA model, based on a commodity technology assumption, to identify the sources of changes in the energy demand structure, the non-energy input structure, the non-energy product-mix and the non-energy final demand of embodied energy requirements. The model contains two features. First, the hybrid rectangular input-output framework expressed in both monetary and physical terms is introduced to relax the effects of different energy prices among industrial sectors on the input structure in physical terms. Second, the demand structure of the input-output system is decomposed into the structure of energy sectors and other sectors by applying the hierarchy system with feedback loops of non-energy sectors. We identify the sources of the changes in Japan's energy use structure between 1985 and 1990. The major findings are that the total energy requirement has increased, mainly because of the changes in the non-energy final demand, while the product-mix changes have opposite effects, that is, energy savings. Journal: Economic Systems Research Pages: 339-363 Issue: 4 Volume: 13 Year: 2001 Keywords: Hybrid Rectangular Input-OUTPUT Framework, Hierarchy System, Structural Decomposition Analysis, X-DOI: 10.1080/09535310120089752 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310120089752 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:13:y:2001:i:4:p:339-363 Template-Type: ReDIF-Article 1.0 Author-Name: Rossella Bardazzi Author-X-Name-First: Rossella Author-X-Name-Last: Bardazzi Author-Name: Marco Barnabani Author-X-Name-First: Marco Author-X-Name-Last: Barnabani Title: A Long-run Disaggregated Cross-section and Time-series Demand System: An Application to Italy Abstract: In this paper, we study a long-run disaggregated model of consumption following an approach based on an integrated cross-section and time-series demand system. The study consists of three steps. First, a cross-section analysis is performed on data from household budget surveys. At this stage, the problem of 'zero expenditures' is solved. The cross-section results are transformed into variables for use in the time-series system of demand. Then, this demand system is built and estimated. Some results for Italy concerning both the cross-section and the time-series analyses are presented. Journal: Economic Systems Research Pages: 365-389 Issue: 4 Volume: 13 Year: 2001 Keywords: Demand Systems, Cross-SECTION And Time Series Models, Lon-RUN Disaggregated Models, X-DOI: 10.1080/09535310120089761 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310120089761 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:13:y:2001:i:4:p:365-389 Template-Type: ReDIF-Article 1.0 Author-Name: Victoria Shestalova Author-X-Name-First: Victoria Author-X-Name-Last: Shestalova Title: General Equilibrium Analysis of International TFP Growth Rates Abstract: The paper presents a study of the total factor productivity (TFP) performance among developed countries between 1985 and 1990. The analysis includes the three large economies: the US, Japan and Europe. A general equilibrium model of these economies is used to estimate TFP growth at the sectoral and at the aggregate levels. The model is based on the fundamentals of the economies and employs only data on input-output flows, factor inputs across sectors, consumption and trade patterns and endowments. Prices are endogenous in the model. They are obtained as shadow prices from the model's linear program and then used to measure TFP growth and decompose it in a technical change effect, a demand effect and a terms-of-trade effect. The technical change effect is highly correlated with the conventional Solow residual measure. This result lends support to the standard measure of technological change. Journal: Economic Systems Research Pages: 391-404 Issue: 4 Volume: 13 Year: 2001 Keywords: Total Factor Productivity Growth, Input-OUTPUT Tables, Equilibrium, X-DOI: 10.1080/09535310120089770 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310120089770 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:13:y:2001:i:4:p:391-404 Template-Type: ReDIF-Article 1.0 Author-Name: Guido Cella Author-X-Name-First: Guido Author-X-Name-Last: Cella Author-Name: Giovanni Pica Author-X-Name-First: Giovanni Author-X-Name-Last: Pica Title: Inefficiency Spillovers in Five OECD Countries: An Interindustry Analysis Abstract: Empirical studies have widely demonstrated that real-world activities are rarely on their production frontier. Hence, an obvious concern arises towards the detection of inefficiencies affecting sectoral performances. The current literature and practice have widely explored the sources of inefficiency internal to decision-making units. This paper argues that a major role is played by external effects due to inefficiency spillovers propagating through interindustry transactions. In order to take this mechanism into account, the paper suggests assessing sectoral performances by a system approach that makes use of shadow prices of intermediate inputs. Our approach is able to disentangle sectoral inefficiencies into internal sectoral inefficiencies and inefficiencies imported from other sectors. The latter component is due to inefficiency spillovers that appear to be empirically relevant in all sectors of five OECD countries. Journal: Economic Systems Research Pages: 405-416 Issue: 4 Volume: 13 Year: 2001 Keywords: Inefficiency, Spilloversy, Production Frontier, X-DOI: 10.1080/09535310120089789 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310120089789 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:13:y:2001:i:4:p:405-416 Template-Type: ReDIF-Article 1.0 Author-Name: Gulay Gunlu k-Senesen Author-X-Name-First: Gulay Gunlu Author-X-Name-Last: k-Senesen Author-Name: Umit Senesen Author-X-Name-First: Umit Author-X-Name-Last: Senesen Title: Reconsidering Import Dependency in Turkey: The Breakdown of Sectoral Demands with Respect to Suppliers Abstract: The common practice for finding direct and indirect import requirements in response to domestic final demand changes involves multiplication of the direct imports coefficients matrix by the Leontief inverse matrix of domestic coefficients. The outcome is usually referred to as the import dependency matrix, a typical element of which gives intermediate import demand, induced by the domestic final demand (policy) sector (column), from the foreign (origin) sector (row). We propose an alternative methodology to capture all three dimensions of import dependency, i.e. origin, destination and policy. The information content of the import dependency matrix is expanded by information on domestic sectors (destination) which demand intermediate imports. Calculations reveal some interesting features of import dependency in Turkey, namely that policy sectors mostly coincide with destination sectors, that oil refinery emerges as a leading destination sector for all, and that raw petroleum is a leading origin sector. Journal: Economic Systems Research Pages: 417-428 Issue: 4 Volume: 13 Year: 2001 Keywords: Imports Turkey, X-DOI: 10.1080/09535310120089798 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310120089798 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:13:y:2001:i:4:p:417-428 Template-Type: ReDIF-Article 1.0 Author-Name: Masahiro Kuroda Author-X-Name-First: Masahiro Author-X-Name-Last: Kuroda Title: Annual Report of the IIOA, 2000 Abstract: Journal: Economic Systems Research Pages: 429-435 Issue: 4 Volume: 13 Year: 2001 X-DOI: 10.1080/09535310020089798 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310020089798 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:13:y:2001:i:4:p:429-435 Template-Type: ReDIF-Article 1.0 Author-Name: Sherman Robinson Author-X-Name-First: Sherman Author-X-Name-Last: Robinson Author-Name: Zhi Wang Author-X-Name-First: Zhi Author-X-Name-Last: Wang Author-Name: Will Martin Author-X-Name-First: Will Author-X-Name-Last: Martin Title: Capturing the Implications of Services Trade Liberalization Abstract: This paper evaluates the impact of service sector trade liberalization on the world economy by a ten-region, eleven-sector CGE model with import embodied technology transfer from developed countries to developing countries. Simulation results show that service sector trade liberalization not only directly affects world service production and trade, but also has significant implications for other sectors in the economy. The major channel of the impact is through inter-industry input-output relations and TFP growth induced from services imported by developing countries from developed countries, which may be embodied with new information and advanced technology. Journal: Economic Systems Research Pages: 3-33 Issue: 1 Volume: 14 Year: 2002 Keywords: Service, Trade, Liberalization, Inter-INDUSTRY, Links, Import, Embodied, Technology, Transfer, Model, X-DOI: 10.1080/09535310220111806 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310220111806 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:14:y:2002:i:1:p:3-33 Template-Type: ReDIF-Article 1.0 Author-Name: Taran Fæhn Author-X-Name-First: Taran Author-X-Name-Last: Fæhn Title: The Qualitative and Quantitative Significance of Non-Tariff Barriers: An ERP study of Norway Abstract: Along with a de-escalation of tariffsin most industrialized countries, a wide range of Non-Tariff Barriers (NTBs) has been developed. NTBs are more challenging to study than tariffsbecause they are more difficult to detect and measure, and because the qualitative functioning of NTBs varies according to their design. In particular, equivalent tariff rate estimates on import quantity restrictions will endogenously react to domestic market shifts, for instance as a result of shifts in other commercial policy measures. Besides emphasizing the quantitative dominance of NTBs to tariffs in the Norwegian trade policy system, this study of Effective Rates of Protection clearly illustrates that it may be critical for trade policy studies to model qualitatively the interdependency between different policy measures. Journal: Economic Systems Research Pages: 35-57 Issue: 1 Volume: 14 Year: 2002 Keywords: Non-TARIFF Barriers, Trade, Policy, Analyses, Effective, Protection, Input-OUTPUT, Analysis, X-DOI: 10.1080/09535310220111815 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310220111815 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:14:y:2002:i:1:p:35-57 Template-Type: ReDIF-Article 1.0 Author-Name: Kiyoshi Fujikawa Author-X-Name-First: Kiyoshi Author-X-Name-Last: Fujikawa Author-Name: Carlo Milana Author-X-Name-First: Carlo Author-X-Name-Last: Milana Title: Input-Output Decomposition Analysis of Sectoral Price Gaps between Japan and China Abstract: Sectoral price gaps that were observed in 1990 between Japan and China are studied in this paper by using a decomposition procedure within the input-output framework. The empirical results show that Japan exhibited producer prices that were higher than those observed in China mainly because it registered higher wages that were only partially offset by higher productivity. The effects on output cost gaps of primaryinput price differences and relative productivity levels are analysed. The effects arising from the use of direct inputs as well as the indirect effects that are incorporated into the difference of intermediate-input prices are accounted for by means of an input-output decomposition technique. Journal: Economic Systems Research Pages: 59-79 Issue: 1 Volume: 14 Year: 2002 Keywords: Input-OUTPUT, Decomposition, Price, Gaps, China, Japan, X-DOI: 10.1080/09535310220111824 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310220111824 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:14:y:2002:i:1:p:59-79 Template-Type: ReDIF-Article 1.0 Author-Name: Juan Carlos Collado Author-X-Name-First: Juan Carlos Author-X-Name-Last: Collado Author-Name: Ferran Sancho Author-X-Name-First: Ferran Author-X-Name-Last: Sancho Title: Recovering Hidden Indirect Tax Rates for Improved Calibration in Multisectoral Modelling Abstract: We explain in this work why a straight calibration to published input-output or SAM data in multisectoral modelling may lead to the use of an incorrect representation of the productive technology, hence casting doubts on the value of the empirical results. The culprit is the possible presence of indirect taxation in the form of, for instance, a value-added tax. We show how to unveil the hidden tax rates so as to clean up published data of this possibly distorting presence and therefore calibrate the correct production technology. This technology can then be used for multisectoral (i.e. CGE, input-output) analysis and simulations. Journal: Economic Systems Research Pages: 81-88 Issue: 1 Volume: 14 Year: 2002 Keywords: Input-OUTPUT, Data, Calibration, General, Equilibrium, Models, X-DOI: 10.1080/09535310220111833 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310220111833 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:14:y:2002:i:1:p:81-88 Template-Type: ReDIF-Article 1.0 Author-Name: Kazuhiko Nishimura Author-X-Name-First: Kazuhiko Author-X-Name-Last: Nishimura Title: Introduction of New Technology with a Sound Transition of the Input-Output Structure Abstract: We examine the general equilibrium repercussions associated with the introduction of new technologies, using the generalized Leontief system that allows technological substitutions. We show that an untested introduction of cost-increasing technologies in any industry may result in creating a non-productive technological structure that does not satisfy the Hawkins-Simon condition, following the autonomous dynamic adjustment process with structural transitions in the economic system. Therefore, we propose a practicable control scheme of introducing cost-increasing technologies that strictly avoids the creation of non-productive structures in all periods of structural transition, using the available information on the ex ante technological structure. Journal: Economic Systems Research Pages: 89-94 Issue: 1 Volume: 14 Year: 2002 Keywords: Technology, Introduction, Generalized, Leontief, System, Hawkins-SIMON, Condition, Dynamic, Adjustment, Process, X-DOI: 10.1080/09535310220111842 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310220111842 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:14:y:2002:i:1:p:89-94 Template-Type: ReDIF-Article 1.0 Author-Name: Lisheng Zeng Author-X-Name-First: Lisheng Author-X-Name-Last: Zeng Title: Erratum to 'A Property of the Leontief Inverse and its Applications to Comparative Static Analysis' Abstract: Journal: Economic Systems Research Pages: 103-103 Issue: 1 Volume: 14 Year: 2002 X-DOI: 10.1080/09535310210644 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310210644 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:14:y:2002:i:1:p:103-103 Template-Type: ReDIF-Article 1.0 Author-Name: Sikhanwita Roy Author-X-Name-First: Sikhanwita Author-X-Name-Last: Roy Author-Name: Tuhin Das Author-X-Name-First: Tuhin Author-X-Name-Last: Das Author-Name: Debesh Chakraborty Author-X-Name-First: Debesh Author-X-Name-Last: Chakraborty Title: A Study on the Indian Information Sector: An Experiment with Input-Output Techniques Abstract: It is widely recognized that rapid changes in information technology (IT) are bringing about major structural changes in the economies of the world. Information flexibility, product quality and fast response are the key factors for global competition and IT plays a critical role in these areas. Policy-makers in industrialized and developing countries view IT as a critical infrastructure to enhance their access to global knowledge, markets and capital. These views--of IT as infrastructure and as core capability for development--resonate with India's aspirations to modernize its infrastructure, transform its industry and join the global economy. Realizing the huge potential of the Indian IT industry, we make an attempt in this paper to study the extent of informatization in the Indian economy during the period 1983-84 to 1989-90 and try to identify the information intensive sectors. This paper also studies the sources of growth of the information sectors of India during 1983-84 to 1989-90 with the help of a structural decomposition analysis (SDA). Journal: Economic Systems Research Pages: 107-129 Issue: 2 Volume: 14 Year: 2002 Month: 6 X-DOI: 10.1080/09535310220140924 File-URL: http://hdl.handle.net/10.1080/09535310220140924 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:14:y:2002:i:2:p:107-129 Template-Type: ReDIF-Article 1.0 Author-Name: Alex R. Hoen Author-X-Name-First: Alex R. Author-X-Name-Last: Hoen Title: Identifying Linkages with a Cluster-based Methodology Abstract: Although many methods for studying linkages between economic sectors exist, most methods only analyse the linkages between a specific sector and all other sectors, or the effects of all sectors on the economy as a whole. Cluster analysis may be helpful to analyse which sectors are strongly connected to each other, when no specific sector is given in advance. The present article reviews how cluster analysis contributes to the analysis of intersectoral linkages. Furthermore, it describes several possible identification methods of these clusters. After selecting the best method, the article provides an index that can be used to compute the degree of similarity between clusters in different regions, countries, or time periods. Journal: Economic Systems Research Pages: 131-146 Issue: 2 Volume: 14 Year: 2002 Month: 6 X-DOI: 10.1080/09535310220140933 File-URL: http://hdl.handle.net/10.1080/09535310220140933 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:14:y:2002:i:2:p:131-146 Template-Type: ReDIF-Article 1.0 Author-Name: Mark S. Leclair Author-X-Name-First: Mark S. Author-X-Name-Last: Leclair Title: Export Composition and Manufacturing Employment in the US during the Economic Downturn of 1991-92 Abstract: This paper examines the effect that export composition had upon manufacturing employment in the US during the 1991 recession. Although it takes, on average, approximately $66 000 in exports to create one job, the exact gains in terms of total employment depend upon the labour-intensity of the products being exported. Foreign sales by the chemical and textile industries result in a far greater increase in employment than exports by the petroleum refining or steel industries. This analysis estimates the employment effects of manufacturing exports over the 1989-95 period, utilizing an input-output model to capture both direct and indirect effects. The results demonstrate that export composition has, at times, both strengthened and reduced demand for labour. Consequently, if job-creation is a national goal, it may be in the interests of the US to promote exports from sectors that are labour-using. Journal: Economic Systems Research Pages: 147-156 Issue: 2 Volume: 14 Year: 2002 Month: 6 X-DOI: 10.1080/09535310220140942 File-URL: http://hdl.handle.net/10.1080/09535310220140942 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:14:y:2002:i:2:p:147-156 Template-Type: ReDIF-Article 1.0 Author-Name: Finn Tarp Author-X-Name-First: Finn Author-X-Name-Last: Tarp Author-Name: David Roland-Holst Author-X-Name-First: David Author-X-Name-Last: Roland-Holst Author-Name: John Rand Author-X-Name-First: John Author-X-Name-Last: Rand Title: Trade and Income Growth in Vietnam: Estimates from a New Social Accounting Matrix Abstract: Economic reforms and greater outward orientation are giving rise to extensive structural change in the Vietnamese economy. Because of the leverage that global markets can exert on an emerging economy, such adjustments will be particularly significant in the composition of domestic supply and demand. As domestic protection levels are reduced and external market access increases, trade growth and shifting trade patterns will have pervasive effects on income distribution in Vietnam. In this paper, we use a newly estimated Vietnam social accounting matrix to elucidate the links between trade and income in the country. With matrix decomposition methods, we show how the Vietnamese economy propagates the direct effects of external demand across the spectrum of domestic activities, factors, and households. This detailed analysis provides a blueprint for policies to improve economic participation of activities and households with relatively weak linkages to the rest of the economy. Journal: Economic Systems Research Pages: 157-184 Issue: 2 Volume: 14 Year: 2002 Month: 6 X-DOI: 10.1080/09535310220140951 File-URL: http://hdl.handle.net/10.1080/09535310220140951 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:14:y:2002:i:2:p:157-184 Template-Type: ReDIF-Article 1.0 Author-Name: Shigemi Kagawa Author-X-Name-First: Shigemi Author-X-Name-Last: Kagawa Author-Name: Hajime Inamura Author-X-Name-First: Hajime Author-X-Name-Last: Inamura Author-Name: Yuichi Moriguchi Author-X-Name-First: Yuichi Author-X-Name-Last: Moriguchi Title: The Invisible Multipliers of Joint-products Abstract: This paper proposes a hybrid input-output model to estimate the intermediate requirements embodied in the final disposal--such as reclamation and incineration - of non-marketable scraps and wastes from industries or households. The model is based on a mixed technology assumption in order to connect the monetary distribution of the ordinary goods and services with the physical distribution of the scraps and wastes as joint-products. Moreover, some demand-pulled invisible multipliers, in terms of the scraps and wastes, have been explored by performing a numerical simulation. From the invisible multipliers, we find the paradoxical phenomenon that the reduction in the amount of final disposal and the promotion of material recycling decreases the intermediate demand of the scraps and wastes for material recycling if there is a time-lag in the introduction of the appropriate recycling technology. Journal: Economic Systems Research Pages: 185-203 Issue: 2 Volume: 14 Year: 2002 Month: 6 X-DOI: 10.1080/09535310220140960 File-URL: http://hdl.handle.net/10.1080/09535310220140960 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:14:y:2002:i:2:p:185-203 Template-Type: ReDIF-Article 1.0 Author-Name: Robert Stehrer Author-X-Name-First: Robert Author-X-Name-Last: Stehrer Title: Dynamics of Trade Integration and Technological Convergence Abstract: The issue of the impact of trade on economic performance and labour markets has been intensively discussed in recent literature on trade liberalization and globalization, where the debate was mainly about identifying the relative impact of trade and technology. The bulk of the existing literature in this area employs, almost without exception, a static Heckscher-Ohlin framework that seems not to be a suitable tool for analysing the ongoing dynamics. This paper presents a dynamic multi-sectoral framework with heterogenous labour to explore the issue of trade liberalization and sectoral catching-up in productivity levels. The model is basically an input-output framework with Schumpeterian features; the latter are modelled as the impact of transitory rents that result from uneven productivity growth and technological catching-up upon the price and quantity systems of the trading economies. Relative productivity and wage rate dynamics across sectors determine the comparative costs and the dynamics of trade specialization. In the Appendix, the equilibrium solutions of the model are derived. Journal: Economic Systems Research Pages: 219-244 Issue: 3 Volume: 14 Year: 2002 Keywords: Trade Liberalization, Economic Integration, Labour Markets, Economic Dynamics, X-DOI: 10.1080/0953531022000002486 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531022000002486 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:14:y:2002:i:3:p:219-244 Template-Type: ReDIF-Article 1.0 Author-Name: Giandemetrio Marangoni Author-X-Name-First: Giandemetrio Author-X-Name-Last: Marangoni Author-Name: Giulio Fezzi Author-X-Name-First: Giulio Author-X-Name-Last: Fezzi Title: Input-Output for Management Control: The Case of GlaxoSmithKline Abstract: In this paper, we present an application of input-output analysis to management control and strategic planning for a pharmaceutical company. The model highlights the complex system of relationships between the different strategic business areas of the company and provides a tool for forecasting the dynamics of production, profits and internally shared services. Journal: Economic Systems Research Pages: 245-256 Issue: 3 Volume: 14 Year: 2002 Keywords: Input-OUTPUT Analysis, Enterprise Management, Strategic Planning, X-DOI: 10.1080/0953531022000002495 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531022000002495 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:14:y:2002:i:3:p:245-256 Template-Type: ReDIF-Article 1.0 Author-Name: Fidel Aroche-Reyes Author-X-Name-First: Fidel Author-X-Name-Last: Aroche-Reyes Title: Structural Transformations and Important Coefficients in the North American Economies Abstract: This paper assesses a few issues related to the question of finding the so-called important coefficients in an input-output table. Further, these coefficients are located in the corresponding matrices of Canada, the USA and Mexico. Important coefficients are analysed employing graph theoretical tools as well as qualitative input-output concepts and techniques. Empirical results are discussed in terms of the possible implications for trade and regional integration which, presumably, would have deepened in the 1990s. Journal: Economic Systems Research Pages: 257-273 Issue: 3 Volume: 14 Year: 2002 Keywords: Economic Structures, Important Coefficients, Qualitative Input-OUTPUT Analysis, Graphs, X-DOI: 10.1080/0953531022000002503 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531022000002503 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:14:y:2002:i:3:p:257-273 Template-Type: ReDIF-Article 1.0 Author-Name: Chokri Dridi Author-X-Name-First: Chokri Author-X-Name-Last: Dridi Author-Name: Geoffrey Hewings Author-X-Name-First: Geoffrey Author-X-Name-Last: Hewings Title: An Investigation of Industry Associations, Association Loops and Economic Complexity: Application to Canada and the United States Abstract: Various methods were proposed to understand the linkages in an input-output system; however, many have focused only on the identification of key sectors in the economy. An alternative approach, identifying analytically the importance of elements and combinations of elements was proposed as a field of influence theory (Sonis et al. , 1996). The purpose of this paper is to offer a complementary approach to the field of influence and the so-called 'Matrioshka principal' (Sonis & Hewings, 1990); the objectives are to identify simple row-column associations (i.e. statistical dependence), seek hierarchical associations between supply and demand in input-output systems and the decomposition of economic complexity into finite stages. For the identification of simple dependencies between rows and columns, we use a log-linear regression and for hierarchical associations and the identification of complexity stages, we use the data analysis technique known as dual scaling. Results of both approaches will be applied to input-output tables of the US and Canada. Journal: Economic Systems Research Pages: 275-296 Issue: 3 Volume: 14 Year: 2002 Keywords: Dual Scaling, Industry Associations, Loops, Economic Complexity, X-DOI: 10.1080/0953531022000002512 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531022000002512 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:14:y:2002:i:3:p:275-296 Template-Type: ReDIF-Article 1.0 Author-Name: Albert Steenge Author-X-Name-First: Albert Author-X-Name-Last: Steenge Title: Obituary: Norms, Values and Verification; Francis Seton Remembered Abstract: Journal: Economic Systems Research Pages: 301-305 Issue: 3 Volume: 14 Year: 2002 X-DOI: 10.1080/0953531022000002530a File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531022000002530a File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:14:y:2002:i:3:p:301-305 Template-Type: ReDIF-Article 1.0 Author-Name: Gabrielle Antille Author-X-Name-First: Gabrielle Author-X-Name-Last: Antille Author-Name: Emilio Fontela Author-X-Name-First: Emilio Author-X-Name-Last: Fontela Title: The Terms of Trade and the International Transfers of Productivity Gains Abstract: In international economic relations, when movements of labour are limited and fiscal redistributive policies non-existent, changes in the terms of trade (the ratio between the prices of exports and imports) are the main driving force for the international redistribution of incomes or of productivity gains. The concept of productivity flows linked to price changes can be extended from the interindustry framework to deal with international relations bringing some new insights into the terms of trade issues. The paper develops a conceptual framework for the computation of international flows of productivity gains, taking into consideration the role of exchange rates and the meaning of Purchasing Power Parities. It is completed by a set of computations on Swiss relations with the rest of the world. Journal: Economic Systems Research Pages: 3-19 Issue: 1 Volume: 15 Year: 2003 Month: 3 X-DOI: 10.1080/0953531032000056918 File-URL: http://hdl.handle.net/10.1080/0953531032000056918 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:15:y:2003:i:1:p:3-19 Template-Type: ReDIF-Article 1.0 Author-Name: Ren� Durand Author-X-Name-First: Ren� Author-X-Name-Last: Durand Author-Name: Sylvain V�zina Author-X-Name-First: Sylvain Author-X-Name-Last: V�zina Title: The Performance of Service Industries in Canada: A Real Value Analysis Abstract: The performance of service industries in Canada has been lower than that of good industries over the last four decades, with noticeable exceptions such as for railways and telecommunication carriers. Service industries were less economically (and technically) efficient in that they generated less output value (quantity) per hour worked (level and growth) or per combined unit of labour and capital (multifactor productivity growth) than good industries. The relative output price of services declined slightly over time compared with goods. At the disaggregated level, changing relative output prices were substantial and proved to be an important factor explaining the relative satisfactory economic performance of many service industries despite their low technical performance. Nevertheless, the output share of service industries increased over that period, sustained, mainly, by the growing recourse of all firms to outsourcing of services. Journal: Economic Systems Research Pages: 21-50 Issue: 1 Volume: 15 Year: 2003 Month: 3 X-DOI: 10.1080/0953531032000056927 File-URL: http://hdl.handle.net/10.1080/0953531032000056927 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:15:y:2003:i:1:p:21-50 Template-Type: ReDIF-Article 1.0 Author-Name: Kazusuke Tsujimura Author-X-Name-First: Kazusuke Author-X-Name-Last: Tsujimura Author-Name: Masako Mizoshita Author-X-Name-First: Masako Author-X-Name-Last: Mizoshita Title: Asset-Liability-Matrix Analysis Derived from the Flow-of-Funds Accounts: The Bank of Japan's Quantitative Monetary Policy Examined Abstract: The first purpose of this paper is to present the compilation procedure of the Asset- Liability-Matrix (ALM) from the Flow-of-Funds (FOF) accounts in the balance sheet format that is widely available in IMF member countries. The introduction of ALM into the framework of FOF analysis enables us to utilize the affluent assets of input-output analysis, notably the concept of Leontief inverse. The second purpose of this article is to demonstrate the application of ALM to the examination of the quantitative monetary policy introduced by the Bank of Japan (BOJ) in March 2001. It can be said, as a conclusion, that there was a tactical error in the quantitative monetary policy adopted by BOJ in terms of the combination of money market operations. We believe that the ALM framework of FOF analysis is a powerful and practical device to fulfil this kind of examination. Journal: Economic Systems Research Pages: 51-67 Issue: 1 Volume: 15 Year: 2003 Month: 3 X-DOI: 10.1080/0953531032000056936 File-URL: http://hdl.handle.net/10.1080/0953531032000056936 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:15:y:2003:i:1:p:51-67 Template-Type: ReDIF-Article 1.0 Author-Name: Fatemeh Bazzazan Author-X-Name-First: Fatemeh Author-X-Name-Last: Bazzazan Author-Name: Peter Batey Author-X-Name-First: Peter Author-X-Name-Last: Batey Title: The Development and Empirical Testing of Extended Input-Output Price Models Abstract: The focus in this paper is on the input-output price model as initially developed by Leontief nearly 60 years ago. A number of methodological refinements are proposed, including the formulation, for the first time, of an extended price model, with a disaggregated household sector. This model is presented in both static and dynamic versions. The effects of these refinements are investigated empirically by reference to an example of policy analysis. This relates to a hypothetical proposal to remove energy subsidies at the national level in Iran. The paper reports on the different results produced by each form of price model and also provides evidence on the sensitivity of individual parameter values. The paper concludes by considering the feasibility of constructing more comprehensive versions of the price model and identifying those elements of the model for which data are likely to be more difficult to obtain at national and regional levels. Journal: Economic Systems Research Pages: 69-86 Issue: 1 Volume: 15 Year: 2003 Month: 3 X-DOI: 10.1080/0953531032000056945 File-URL: http://hdl.handle.net/10.1080/0953531032000056945 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:15:y:2003:i:1:p:69-86 Template-Type: ReDIF-Article 1.0 Author-Name: Theo Junius Author-X-Name-First: Theo Author-X-Name-Last: Junius Author-Name: Jan Oosterhaven Author-X-Name-First: Jan Author-X-Name-Last: Oosterhaven Title: The Solution of Updating or Regionalizing a Matrix with both Positive and Negative Entries Abstract: Normally, when updating or regionalizing input-output matrices with negative entries, the negative numbers are first brought outside the matrix, then the matrix is updated or regionalized, then the negative numbers are added back to the result. This is theoretically, and sometimes also empirically, a rather unsatisfactory procedure. This paper proposes a theoretically sound alternative for the presently used ad hoc procedure. Based on the first-order conditions of a restated information loss problem, we generalize the RAS-procedure using reciprocals of the exponential transformations of the related Lagrange multipliers. The diagonal matrices that update or regionalize a given matrix optimally are the solutions of a fixed-point problem. To derive a numerical solution, the paper presents the GRAS-algorithm, which is illustrated in terms of a simple updating example. Journal: Economic Systems Research Pages: 87-96 Issue: 1 Volume: 15 Year: 2003 Month: 3 X-DOI: 10.1080/0953531032000056954 File-URL: http://hdl.handle.net/10.1080/0953531032000056954 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:15:y:2003:i:1:p:87-96 Template-Type: ReDIF-Article 1.0 Author-Name: Rob Vos Author-X-Name-First: Rob Author-X-Name-Last: Vos Title: Editorial Abstract: This article does not have an abstract Journal: Economic Systems Research Pages: 107-111 Issue: 2 Volume: 15 Year: 2003 X-DOI: 10.1080/0953531032000091126 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531032000091126 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:15:y:2003:i:2:p:107-111 Template-Type: ReDIF-Article 1.0 Author-Name: Graham Pyatt Author-X-Name-First: Graham Author-X-Name-Last: Pyatt Title: An Alternative Approach to Poverty Analysis Abstract: A model of the household in which production and consumption activities are not separable is developed in order to provide micro-economic foundations for an alternative to the standard approach to poverty analysis. The alternative suggests that socio-economic groups and their respective livelihoods should be the basic building blocks for analysing poverty within a general equilibrium framework. Journal: Economic Systems Research Pages: 113-133 Issue: 2 Volume: 15 Year: 2003 Keywords: Poverty, Consumption Behaviour, Social Accounting Matrix, Household Modelling, X-DOI: 10.1080/0953531032000091135 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531032000091135 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:15:y:2003:i:2:p:113-133 Template-Type: ReDIF-Article 1.0 Author-Name: Angus Deaton Author-X-Name-First: Angus Author-X-Name-Last: Deaton Title: Household Surveys, Consumption, and the Measurement of Poverty Abstract: Household surveys are playing an increasingly important role in the measurement of poverty and well-being around the world. The Living Standards Measurement Study, which was begun in the World Bank under the guidance of Graham Pyatt in 1979, has played an important role in this movement. Its surveys are widely used within the Bank to measure consumption-based poverty, and survey data are now the exclusive basis for the global poverty counts. This paper discusses a number of unresolved issues in using consumption-based surveys for measuring well-being, including the choice of a money-metric versus welfare-ratio approach, the collection of suitable price information, the effects of measurement error on estimation, and methods for correcting per capita consumption for the demographic structure of the household. Journal: Economic Systems Research Pages: 135-159 Issue: 2 Volume: 15 Year: 2003 Keywords: Household Surveys, Consumption, Poverty, X-DOI: 10.1080/0953531032000091144 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531032000091144 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:15:y:2003:i:2:p:135-159 Template-Type: ReDIF-Article 1.0 Author-Name: Jeffrey Round Author-X-Name-First: Jeffrey Author-X-Name-Last: Round Title: Constructing SAMs for Development Policy Analysis: Lessons Learned and Challenges Ahead Abstract: The aim of this paper is to appraise a few of the key innovative features of the early work in compiling SAMs for development policy analysis; to set out and review some recent methodological advances; and to identify those areas where compilation continues to be problematic. It briefly re-visits the features of the SAM as an integrating framework and sets out its relationship to the SNA 1993. The main compilation problems faced in practice arise from assembling the household accounts from household survey data where income data are especially unreliable and are difficult to link to the factor accounts and to income transfers. Experience is drawn from the construction of a Ghana SAM. In the literature relatively more attention has been devoted to balancing and data reconciliation methods, which are briefly reviewed, although these are second order adjustments and much still depends on the quality of the initial estimates Journal: Economic Systems Research Pages: 161-183 Issue: 2 Volume: 15 Year: 2003 Keywords: Social Accounting Matrices, Household Accounts, Balancing Methods, X-DOI: 10.1080/0953531032000091153 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531032000091153 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:15:y:2003:i:2:p:161-183 Template-Type: ReDIF-Article 1.0 Author-Name: Steven Keuning Author-X-Name-First: Steven Author-X-Name-Last: Keuning Author-Name: Marleen Verbruggen Author-X-Name-First: Marleen Author-X-Name-Last: Verbruggen Title: European Structural Indicators, A Way Forward Abstract: At the 2000 Lisbon summit, the European Union formulated the ambition to transform itself into "the most competitive and dynamic knowledge-based economy in the world capable of sustainable economic growth with more and better jobs and greater social cohesion'. It is remarkable that, until recently, European statisticians were hardly involved in the design of a statistical information system and related "structural' indicators for this important policy purpose. Instead, indicators have been designed that do not measure what they intend to measure, are based on incomparable data and give the impression of a fairly incoherent shopping list of numbers without an underlying vision on the use of these numbers in policy making. This paper argues that indicators can best be based on a coherent accounting system, such as the national accounts, and that the SESAME- system, which is an extension of national accounts and so-called Social Accounting Matrices, offers promising perspectives in this regard. Journal: Economic Systems Research Pages: 185-196 Issue: 2 Volume: 15 Year: 2003 Keywords: Socio-economic Policy Analysis, Statistical Indicators, Social Accounting Matrix, Sesame, X-DOI: 10.1080/0953531032000091171 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531032000091171 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:15:y:2003:i:2:p:185-196 Template-Type: ReDIF-Article 1.0 Author-Name: Rob Vos Author-X-Name-First: Rob Author-X-Name-Last: Vos Author-Name: Niek De Jong Author-X-Name-First: Niek Author-X-Name-Last: De Jong Title: Trade Liberalization and Poverty in Ecuador: A CGE Macro-Microsimulation Analysis Abstract: Cross-country analysis of the aggregate growth-poverty link is likely to miss important country-specific detail and possible offsetting forces in the underlying labour market adjustment process. This paper combines a CGE model analysis with a microsimulations approach to analyse the effects of trade liberalization on poverty and income distribution in Ecuador. The CGE model enables us to disentangle the general equilibrium effects of various trade policy scenarios on sector output, employment, factor incomes and household consumption. However, as is typical of CGE models, this analysis only provides distribution results for fairly aggregated groups of workers and a reduced number of representative households. The microsimulations approach adds the full distribution to the analysis and allows simulation of the effects of trade reform on the job status and remuneration of individual workers and thereby on household income distribution and poverty. The macro- microsimulation results indicate that the trade opening in Ecuador induced mild aggregate welfare gains, but rising income inequality due to rising wage differentials between skilled and unskilled workers implies virtually no poverty-reducing effect from trade liberalization. Journal: Economic Systems Research Pages: 211-232 Issue: 2 Volume: 15 Year: 2003 Keywords: Trade Liberalization, Poverty, Inequality, Cge Modelling, Social Accounting Matrix, Microsimulations, Ecuador, X-DOI: 10.1080/0953531032000091180 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531032000091180 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:15:y:2003:i:2:p:211-232 Template-Type: ReDIF-Article 1.0 Author-Name: Alan Roe Author-X-Name-First: Alan Author-X-Name-Last: Roe Title: Asymmetries between Rich and Poor Countries in Financial Crisis Responses: The Need for a Flow-of-Funds Approach Abstract: This paper focuses on the manner in which interest rates have been raised to, and sustained at, extremely high levels in developing and emerging market economies as a consequence of recent financial crises. By contrast rich market economies have typically lowered interest rates and injected liquidity in response to incipient financial crises. The paper first sketches the logic that lies behind extremely high interest rates (nominal and real) as an element of crisis resolution. It suggests that this reflects a money-phobic view of financial markets and also conflicts with some well-established economics. It then reviews the conventional wisdom about why richer economies have enjoyed sustained price stability in recent years and why this in turn has allowed their monetary authorities to be relaxed about injecting additional liquidity in response to LTCM (1998) and September 11 (2001)-type crises. It is pointed out that this conventional wisdom is also money-phobic in that it neglects the build up of corporate and government debt in bond and financial derivative form that has been associated with recent financial developments. This analysis helps to contest the common view that emerging market economies pay a higher price merely because their polices are "bad'. Finally, the paper reviews the manner in which the financial systems of developing and emerging market economies respond to the destabilization created by corrosively high real rates of interest. Even when bankruptcy arrangements are well established, certain new forms of financial flows and instruments are implicit in this response, but are invariably ignored in formal modelling. Journal: Economic Systems Research Pages: 233-257 Issue: 2 Volume: 15 Year: 2003 Keywords: Interest Rates, Flow-of-funds, Financial Crisis, Monetary Policy, X-DOI: 10.1080/0953531032000091199 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531032000091199 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:15:y:2003:i:2:p:233-257 Template-Type: ReDIF-Article 1.0 Author-Name: Erik Dietzenbacher Author-X-Name-First: Erik Author-X-Name-Last: Dietzenbacher Title: Editorial Abstract: This article does not have an abstract Journal: Economic Systems Research Pages: 267-267 Issue: 3 Volume: 15 Year: 2003 X-DOI: 10.1080/0953531032000111763 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531032000111763 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:15:y:2003:i:3:p:267-267 Template-Type: ReDIF-Article 1.0 Author-Name: Lawrence Klein Author-X-Name-First: Lawrence Author-X-Name-Last: Klein Title: Some Potential Linkages for Input-Output Analysis with Flow-of-Funds Abstract: Three major, interrelated accounting statements, at the frontiers of quantitative economic analysis, are three interrelated systems, namely: (1) National income and product accounts (NIPA), (2) The input-output tableaux, (IO), and (3) flow-of- funds accounts (FF). The third-mentioned system is somewhat less available and used in only limited areas of macroeconomic analysis. This paper is mainly concerned with use of FF accounting systems. This system shows where financial resources originate, and where they go in support of real capital formation. In this respect, interest rates and other market-based financial rates are of key importance. While much macroeconomic analysis is based on the rates that fit the yield curve, showing the interest rate structure over various maturities of debt associated with a given degree of risk. In contrast, the FF accounts throw light on the whole spectrum of interest rates, across maturities and debt qualities. For example, in analysis of the real estate market and funding of capital formation there, it is important to have a full understanding of the course of mortgage rates of different maturities and qualities. In short, it is necessary to develop a full appreciation of supply and demand forces in the mortgage market, which often is not obviously related to movements of the operative rate for monetary policy, such as very short-term inter bank rates or call money rates. This paper attempts to provide material from the flow-of-funds accounts that would make it possible to analyze the movement of relevant mortgage rates or whatever other rates are needed to understand the financing of capital formation in real estate. Journal: Economic Systems Research Pages: 269-277 Issue: 3 Volume: 15 Year: 2003 Keywords: Flow Of Funds, yield Curve, spectrum Of Interest Rates, lending, saving, capital Formation, surplus, deficit, debt, X-DOI: 10.1080/0953531032000111772 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531032000111772 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:15:y:2003:i:3:p:269-277 Template-Type: ReDIF-Article 1.0 Author-Name: Dale Jorgenson Author-X-Name-First: Dale Author-X-Name-Last: Jorgenson Author-Name: Mun Ho Author-X-Name-First: Mun Author-X-Name-Last: Ho Author-Name: Kevin Stiroh Author-X-Name-First: Kevin Author-X-Name-Last: Stiroh Title: Growth of US Industries and Investments in Information Technology and Higher Education Abstract: This paper presents new data on the sources of growth for the US economy over the period 1977-2000. Our principal innovation is the incorporation of detailed information for individual industries, including those involved in the production of information technology equipment and software. We show that economic growth is dominated by investments in information technology and higher education, both for individual industries and the economy as a whole. We also show that a jump in information technology investment, gains in the employment of college-educated workers, and the revival of productivity growth account for the resurgence of the US economy since 1995. Journal: Economic Systems Research Pages: 279-325 Issue: 3 Volume: 15 Year: 2003 Keywords: Economic Growth, Information Technology, Education, X-DOI: 10.1080/0953531032000111781 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531032000111781 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:15:y:2003:i:3:p:279-325 Template-Type: ReDIF-Article 1.0 Author-Name: Frederic Scherer Author-X-Name-First: Frederic Author-X-Name-Last: Scherer Title: Technology Flows Matrix Estimation Revisited Abstract: This paper revisits the methodological problems of estimating matrices showing how technological advances--measured by industry research and development outlays--flow from industries of origin to using industries. An early effort relied upon the analysis of 15 112 US patents. Several alternative methods are explored to address methodological questions concerning the choice of carrier matrices, the handling of diagonal elements, and the treatment of capital goods flows. Technology flow matrices estimated using diverse combinations of assumptions are tested for goodness-of-fit relative to the original patent-based matrix and for their ability to "predict' productivity growth in Solowian regression equations. Although some anomalies emerge, the best results are obtained using combined first-order transactions and capital flows matrices with diagonal elements adjusted to reflect the ratio of internal process to all R&D spending. However, flow data compiled using the Leontief inverse matrix add explanatory power in productivity growth regressions. Journal: Economic Systems Research Pages: 327-358 Issue: 3 Volume: 15 Year: 2003 Keywords: Productivity Growth, Technology, Research And Development, X-DOI: 10.1080/0953531032000111790 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531032000111790 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:15:y:2003:i:3:p:327-358 Template-Type: ReDIF-Article 1.0 Author-Name: Kazuhiko Nishimura Author-X-Name-First: Kazuhiko Author-X-Name-Last: Nishimura Title: Technology Transfer with Capital Constraints and Environmental Protections: Models and Applications to the Philippines Abstract: An efficient technology transfer from advanced to developing countries is explored by extending dynamic input-output optimization models. We include capital investments for the transferred technologies that affect the structural change and the welfare streams of consumption and the environmental state in the developing country. This technology transfer model is then linearized to solve larger problems. The linearized model was estimated and applied to assess the optimal technology transfer schedule from Japan to the Philippines. Journal: Economic Systems Research Pages: 359-370 Issue: 3 Volume: 15 Year: 2003 Keywords: Technology Transfer, Environmental Protection, Dynamic Input-output Models, Linear Programming, X-DOI: 10.1080/0953531032000111808 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531032000111808 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:15:y:2003:i:3:p:359-370 Template-Type: ReDIF-Article 1.0 Author-Name: Daniel Wilson Author-X-Name-First: Daniel Author-X-Name-Last: Wilson Title: Embodying Embodiment in a Structural, Macroeconomic Input-Output Model Abstract: In this paper, I develop a regression-based system of labour productivity equations that account for capital-embodied technological change and I incorporate this system into IDLIFT, a structural, macroeconomic input-output model of the US economy. Builders of regression-based forecasting models have long had difficulty finding labour productivity equations that exhibit the "Solowian' property that movements in investment should cause accompanying movements in labour productivity. The production theory developed by Solow and others dictates that this causation is driven by the effect of traditional capital deepening as well as technological change embodied in capital. Lack of measurement of the latter has hampered the ability of researchers to estimate properly the productivity-investment relationship. Recent research by Wilson (2001) has alleviated this difficulty by estimating industry-level embodied technological change. In this paper, I utilize those estimates to construct capital stocks adjusted for technological change and then use these adjusted stocks to estimate Solow-type labour productivity equations. It is shown that replacing IDLIFT's former productivity equations, based on changes in output and time trends, with the new equations, results in a convergence between the dynamic behaviour of the model and that predicted by traditional (Solowian) production theory. Journal: Economic Systems Research Pages: 371-398 Issue: 3 Volume: 15 Year: 2003 Keywords: Equipment-embodied Technological Change, Productivity, Forecasting, X-DOI: 10.1080/0953531032000111817 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531032000111817 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:15:y:2003:i:3:p:371-398 Template-Type: ReDIF-Article 1.0 Author-Name: Erik Dietzenbacher Author-X-Name-First: Erik Author-X-Name-Last: Dietzenbacher Title: Report on the Montreal Conference Abstract: This article does not have an abstract Journal: Economic Systems Research Pages: 399-414 Issue: 3 Volume: 15 Year: 2003 X-DOI: 10.1080/0953531032000111826 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531032000111826 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:15:y:2003:i:3:p:399-414 Template-Type: ReDIF-Article 1.0 Author-Name: Erik Dietzenbacher Author-X-Name-First: Erik Author-X-Name-Last: Dietzenbacher Title: Annual Report of the IIOA, 2002 Abstract: This article does not have an abstract Journal: Economic Systems Research Pages: 415-419 Issue: 3 Volume: 15 Year: 2003 X-DOI: 10.1080/0953531032000111835 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531032000111835 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:15:y:2003:i:3:p:415-419 Template-Type: ReDIF-Article 1.0 Author-Name: Rita Bhowmik Author-X-Name-First: Rita Author-X-Name-Last: Bhowmik Title: Service Intensities in the Indian Economy: 1968/9-1993/4 Abstract: This paper analyses the service intensities for production of different industries in the Indian economy during the period 1968-69 to 1993-94 with an input-output approach. Two different methodologies—(1) direct service intensities and (2) direct plus indirect service intensities—have been used to calculate the service intensity of different industries using six input-output tables. It is found from the exercise that service intensities have increased in the Indian economy over 25 years. To reflect the performance and trend of service intensity of each industry over the study period, the mean and coefficient of variation of the service intensities have been calculated. The empirical part of this study shows that Metal products, Machineries, Trade, and Banking have a high mean and a low coefficient of variation. According to their service intensities they were the key sectors, with consistently the largest consumption of the output of the service sector as an input for their production. Journal: Economic Systems Research Pages: 427-437 Issue: 4 Volume: 15 Year: 2003 Keywords: Service sector, Indian economy, service intensity, key sector, X-DOI: 10.1080/0953531032000152308 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531032000152308 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:15:y:2003:i:4:p:427-437 Template-Type: ReDIF-Article 1.0 Author-Name: Thijs ten Raa Author-X-Name-First: Thijs ten Author-X-Name-Last: Raa Author-Name: Jose Manuel Rueda-Cantuche Author-X-Name-First: Jose Manuel Author-X-Name-Last: Rueda-Cantuche Title: The Construction of Input-Output Coefficients Matrices in an Axiomatic Context: Some Further Considerations Abstract: Kop Jansen & ten Raa (1990) established a purely theoretical solution to the problem of selecting a model for the construction of coefficients on the basis of make and use tables. In an axiomatic context, they singled out the so-called commodity technology model as the best one according to some desirable properties. The aim of this paper is to delineate the restrictions on the relevant data sets that ensure fulfilment of the desirable properties by other models used by statistical offices. Journal: Economic Systems Research Pages: 439-455 Issue: 4 Volume: 15 Year: 2003 Keywords: Make and use tables, technical coefficients, X-DOI: 10.1080/0953531032000152317 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531032000152317 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:15:y:2003:i:4:p:439-455 Template-Type: ReDIF-Article 1.0 Author-Name: Vito Albino Author-X-Name-First: Vito Author-X-Name-Last: Albino Author-Name: Erik Dietzenbacher Author-X-Name-First: Erik Author-X-Name-Last: Dietzenbacher Author-Name: Silvana Kuhtz Author-X-Name-First: Silvana Author-X-Name-Last: Kuhtz Title: Analysing Materials and Energy Flows in an Industrial District using an Enterprise Input-Output Model Abstract: Recent approaches to sustainable development leave much room for policies at a local level. In fact, it is becoming evident that targets such as increasing resource productivity, preserving natural cycles, or extending the present level of welfare, are best pursued within the confines of a local area. In particular, environmental changes are best brought about by considering local systems of firms as cornerstones of cooperative strategies and using data on materials and energy use in physical terms. In this paper, an enterprise input-output model is developed for an industrial district, i.e. a local group of firms specialized in the production of a single final output. The model allows for a detailed quantitative analysis of materials and energy flows and the consequent generation of waste and pollution. As a planning tool, the model may be used to evaluate alternative scenarios, such as the possibility of re- using waste taking account of sustainability requirements. An empirical case study applies the model to an industrial district in Southern Italy producing leather sofas. Journal: Economic Systems Research Pages: 457-480 Issue: 4 Volume: 15 Year: 2003 Keywords: Industrial district, enterprise input-output model, materials, energy, X-DOI: 10.1080/0953531032000152326 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531032000152326 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:15:y:2003:i:4:p:457-480 Template-Type: ReDIF-Article 1.0 Author-Name: Julio Sanchez-Choliz Author-X-Name-First: Julio Author-X-Name-Last: Sanchez-Choliz Author-Name: Rosa Duarte Author-X-Name-First: Rosa Author-X-Name-Last: Duarte Title: Production Chains and Linkage Indicators Abstract: This paper uses a framework of production chains, which emerge from the vertical integration processes, in order to propose a general definition of linkage indicators. This definition is based on blocks of sectors and offers, among others, the following advantages. A reduction in the aggregation requirement, the resolution of the problems associated with the so-called distribution matrices, an easier analysis of the linkage components and, finally, the possibility to shed light on the links between Hypothetical Extraction Methods and sectoral analyses. Moreover, because of its general form, it helps to identify analogies between different types of indicators. Journal: Economic Systems Research Pages: 481-494 Issue: 4 Volume: 15 Year: 2003 Keywords: Production chains, Vertical integration, Interindustry linkages, X-DOI: 10.1080/0953531032000152335 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531032000152335 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:15:y:2003:i:4:p:481-494 Template-Type: ReDIF-Article 1.0 Author-Name: Hermann Schnabl Author-X-Name-First: Hermann Author-X-Name-Last: Schnabl Title: The ECA-method for Identifying Sensitive Reactions within an IO Context Abstract: The paper introduces an alternative method to determine "sensitivity' within an input-output-context and makes the most sensitive connections visible in an overall graph. The method called ECA (Elasticity Coefficient Analysis) tries—like the Important Coefficient Analysis (ICA)—to derive structures from a certain property of the Leontief inverse. As the core of the method is elasticity—i.e. taking the relative reaction of the element bij of the inverse as a measure of response to a 1% change of the input coefficient aij—it describes the dynamic potential of certain sectors on possible changes of technical coefficients. In the second part of the paper, comparisons are made between the results of MFA (Minimal Flow Analysis), ICA and ECA upon using the same table for analysis. ICA and ECA to some extent show similarities but also some differences. Both contrast with MFA with respect to the very basis of the approach that enforces different interpretations of the results. Finally, some hypotheses on the differences and similarities are set up that could give a perspective for the further use of the different methods. Journal: Economic Systems Research Pages: 495-504 Issue: 4 Volume: 15 Year: 2003 Keywords: Elasticity coefficient analysis, important coefficients, minimal flow analysis, X-DOI: 10.1080/0953531032000152344 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531032000152344 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:15:y:2003:i:4:p:495-504 Template-Type: ReDIF-Article 1.0 Author-Name: Shigemi Kagawa Author-X-Name-First: Shigemi Author-X-Name-Last: Kagawa Author-Name: Hajime Inamura Author-X-Name-First: Hajime Author-X-Name-Last: Inamura Author-Name: Yuichi Moriguchi Author-X-Name-First: Yuichi Author-X-Name-Last: Moriguchi Title: A Simple Multi-Regional Input-Output Account for Waste Analysis Abstract: The present paper provides a simple multiregional input-output model for waste analysis with which to estimate intraregional and interregional effects of industrial wastes embodied in regional final consumptions. The empirical analyses using 1995 nine-regions input-output tables reveals the regional properties of the interregional linkage effects. The Kanto and Kinki regions remarkably control the industrial waste emissions and waste landfills within their own regions by importing waste-intensive intermediate goods and services from the other regions. The Chugoku and Shikoku regions greatly contributed to the production of the waste-intensive goods and services for the other regions, considering the waste emissions and waste landfills relative to the commodity production levels. We also find that the household consumption behaviour in other regions indirectly plays a more important role in waste emissions than the municipal waste disposal behaviour in the region in question at least in 1995. Journal: Economic Systems Research Pages: 1-20 Issue: 1 Volume: 16 Year: 2004 Keywords: Multiregional input-output account, waste analysis, X-DOI: 10.1080/0953531032000164774 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531032000164774 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:16:y:2004:i:1:p:1-20 Template-Type: ReDIF-Article 1.0 Author-Name: Steven Kraines Author-X-Name-First: Steven Author-X-Name-Last: Kraines Author-Name: Yoshikuni Yoshida Author-X-Name-First: Yoshikuni Author-X-Name-Last: Yoshida Title: Process System Modelling of Production Technology Alternatives using Input- Output Tables with Sector Specific Units Abstract: Input-output analysis is usually based on tables of accounts expressed in uniform monetary or physical units. However, from a process system modelling perspective, tables of accounts in sector specific units may be more useful for evaluating the effectiveness of new production technologies on reducing pollutant emissions. Using the sector specific unit conceptualization of an IO table, one can consider the effect of changes in direct input coefficients for a particular sector on the complete set of total input coefficients independently from the other direct input coefficients. A process system modelling based method for calculating the total industrial outputs from a new technology matrix together with the new relative prices for each sector output is presented. The method is then used to study the effect of technology changes in the steel making industry in Liaoning Province, China on prices and pollutant emissions. Journal: Economic Systems Research Pages: 21-32 Issue: 1 Volume: 16 Year: 2004 Keywords: Process system modelling, price model, technology changes, Chinese steel industry, X-DOI: 10.1080/0953531032000164783 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531032000164783 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:16:y:2004:i:1:p:21-32 Template-Type: ReDIF-Article 1.0 Author-Name: Bart Van den Cruyce Author-X-Name-First: Bart Van den Author-X-Name-Last: Cruyce Title: Use Tables for Imported Goods and Valuation Matrices for Trade Margins— an Integrated Approach for the Compilation of the Belgian 1995 Input-Output Tables Abstract: This paper describes the compilation of the use table for imported goods and the valuation matrix of trade margins for Belgium in 1995. It introduces the methodological novelty of integrating the compilation of both tables and systematically exploiting the fact that large import and export flows do not generate trade margins. This is notably the case for direct imports for intermediate consumption or investment by non-traders, and direct exports by producers. For identifying these trade flows, extensive use was made of intrastat and extrastat data. The results are compared with those of a proportional distribution of imports and trade margins. Many statistical offices resort to the latter approach because of a lack of survey data on the destination of trade margins and imports. We demonstrate that the integrated approach can improve the quality of both the import matrix and the valuation matrix for trade margins, while using only existing data sources. Journal: Economic Systems Research Pages: 33-61 Issue: 1 Volume: 16 Year: 2004 Keywords: Supply and use tables, imports, trade margins, Belgium, X-DOI: 10.1080/0953531032000164792 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531032000164792 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:16:y:2004:i:1:p:33-61 Template-Type: ReDIF-Article 1.0 Author-Name: Junning Cai Author-X-Name-First: Junning Author-X-Name-Last: Cai Author-Name: Pingsun Leung Author-X-Name-First: Pingsun Author-X-Name-Last: Leung Title: Linkage Measures: a Revisit and a Suggested Alternative Abstract: This paper examines major linkage measures in the literature from different perspectives and attempts to clarify some of the controversies over them. The examination and clarification suggest more refined backward and forward linkage measures for linkage indices construction. The measures are then applied to analyse the linkages of Hawaii's agriculture sectors. Journal: Economic Systems Research Pages: 63-83 Issue: 1 Volume: 16 Year: 2004 Keywords: Backward and forward linkages, supply-driven input-output model, key sectors, X-DOI: 10.1080/0953531032000164800 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531032000164800 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:16:y:2004:i:1:p:63-83 Template-Type: ReDIF-Article 1.0 Author-Name: GianDemetrio Marangoni Author-X-Name-First: GianDemetrio Author-X-Name-Last: Marangoni Author-Name: Gianluca Colombo Author-X-Name-First: Gianluca Author-X-Name-Last: Colombo Author-Name: Giulio Fezzi Author-X-Name-First: Giulio Author-X-Name-Last: Fezzi Title: Modelling Intra-Group Relationships Abstract: Within a group of companies, a model is given for management of the relationships between the parent company and its subsidiaries. This is particularly relevant for groups originating from mergers and takeovers, because firms acquired often differ substantially in organizational structure from each other and from the parent company. The model provides a means of harmonizing the organizational structures of parent company and subsidiaries, so as to provide a complete coverage of necessary activities without duplication, and a means of identifying which activities should, in economic terms, be centralized by the parent company, and which should be delegated to the subsidiary. Finally, there is an empirical application of the model to one of the principal Italian banking groups. Journal: Economic Systems Research Pages: 85-104 Issue: 1 Volume: 16 Year: 2004 Keywords: Intra-group relationships, banking groups, enterprise management, enterprise input- output, X-DOI: 10.1080/0953531032000164819 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531032000164819 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:16:y:2004:i:1:p:85-104 Template-Type: ReDIF-Article 1.0 Author-Name: Michael Lahr Author-X-Name-First: Michael Author-X-Name-Last: Lahr Author-Name: Louis de Mesnard Author-X-Name-First: Louis Author-X-Name-Last: de Mesnard Title: Biproportional Techniques in Input-Output Analysis: Table Updating and Structural Analysis Abstract: This paper introduces the rest of this issue of Economic Systems Research, which is dedicated to the contributions of Sir Richard Stone, Michael Bacharach, and Philip Israilevich. It starts out with a brief history of biproportional techniques and related matrix balancing algorithms. We then discuss the RAS algorithm developed by Sir Richard Stone and others. We follow that by evaluating the interpretability of the product of the adjustment parameters, generally known as R and S. We then move on to discuss the various formal formulations of other biproportional approaches and discuss what defines an algorithm as 'biproportional'. After mentioning a number of competing optimization algorithms that cannot fall under the rubric of being biproportional, we reflect upon how some of their features have been included into the biproportional setting (the ability to fix the value of interior cells of the matrix being adjusted and of incorporating data reliability into the algorithm). We wind up the paper by pointing out some areas that could use further investigation. Journal: Economic Systems Research Pages: 115-134 Issue: 2 Volume: 16 Year: 2004 Keywords: Biproportion, Ras, Matrix Balancing, Interpretation, Algorithms, Extensions, X-DOI: 10.1080/0953531042000219259 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531042000219259 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:16:y:2004:i:2:p:115-134 Template-Type: ReDIF-Article 1.0 Author-Name: Randall Jackson Author-X-Name-First: Randall Author-X-Name-Last: Jackson Author-Name: Alan Murray Author-X-Name-First: Alan Author-X-Name-Last: Murray Title: Alternative Input-Output Matrix Updating Formulations Abstract: There has been a recent resurgence of interest in biproportional adjustment methods for updating and interpreting change in matrix representations of regional structures, most commonly input-output accounts. Although the biproportional method, commonly called the RAS technique in the input-output literature, has been shown to have a number of theoretically appealing properties, various alternatives do exist. In this paper, we develop and empirically assess a number of alternatives, comparing performance and examining the attributes of these adjustment methods. Two of these are sign-preserving updating methods for use when tables contain both positive and negative entries. One of these is shown to generate less information gain than does a generalized RAS method that Junius & Oosterhaven (2003) formulated to deal with matrices with both positive and negative values. Overall, while the RAS method continues to be commonly used and its choice is often rational, alternative methods can perform as well or better along certain dimensions and in certain contexts. Journal: Economic Systems Research Pages: 135-148 Issue: 2 Volume: 16 Year: 2004 Keywords: Updating, Biproportion, Ras, Distance Measures, X-DOI: 10.1080/0953531042000219268 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531042000219268 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:16:y:2004:i:2:p:135-148 Template-Type: ReDIF-Article 1.0 Author-Name: Donald Gilchrist Author-X-Name-First: Donald Author-X-Name-Last: Gilchrist Author-Name: Larry St. Louis Author-X-Name-First: Larry Author-X-Name-Last: St. Louis Title: An Algorithm for the Consistent Inclusion of Partial Information in the Revision of Input-Output Tables Abstract: TRAS is a natural extension of RAS that utilizes information in addition to row and column totals to produce updated matrices that are consistent with known cells and aggregates of known cells. This paper provides a simple restatement of the TRAS algorithm developed in Gilchrist & St. Louis (1999) and then tests its effectiveness by applying TRAS to the matrices obtained after RAS adjustments have been completed. The incremental gains from the TRAS adjustments were statistically significant. Journal: Economic Systems Research Pages: 149-156 Issue: 2 Volume: 16 Year: 2004 Keywords: Biproportion, Ras, Tras, Partial Information, X-DOI: 10.1080/0953531042000219277 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531042000219277 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:16:y:2004:i:2:p:149-156 Template-Type: ReDIF-Article 1.0 Author-Name: Mark Planting Author-X-Name-First: Mark Author-X-Name-Last: Planting Author-Name: Jiemin Guo Author-X-Name-First: Jiemin Author-X-Name-Last: Guo Title: Increasing the Timeliness of US Annual Input-Output Accounts Abstract: The timeliness of the US input-output (I-O) accounts is a major concern for policymakers and industry analysts, as well as academics. In response, the Bureau of Economic Analysis initiated research in 2001 to identify, develop and implement an estimating method for producing more timely and reliable annual I-O accounts than are currently available. The research included reviewing the frameworks and methods currently used by other statistical agencies and academic researchers, obtaining more timely industry source data, and developing enhanced methods and processes for the automated updating and balancing of annual I-O tables. The results of this research indicate that our new automated updating and balancing method can reduce the time lag for producing the annual I-O accounts from three years to one year without reducing quality. Our method is based on an adjusted RAS process that simultaneously balances the I-O table in producers' and purchasers' prices; uses more exogenous data; and processes tables at the most detailed level. Journal: Economic Systems Research Pages: 157-167 Issue: 2 Volume: 16 Year: 2004 Keywords: Updating, System Of National Accounts, Biproportion, Balancing Algorithm, Ras, X-DOI: 10.1080/0953531042000219286 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531042000219286 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:16:y:2004:i:2:p:157-167 Template-Type: ReDIF-Article 1.0 Author-Name: Esben Dalgaard Author-X-Name-First: Esben Author-X-Name-Last: Dalgaard Author-Name: Christian Gysting Author-X-Name-First: Christian Author-X-Name-Last: Gysting Title: An Algorithm for Balancing Commodity-flow Systems Abstract: In many cases there is a need to balance commodity-flow system data quickly and with limited resources. In order to compile new supply and use tables and investment matrices consistent with revised national accounts data, it can be necessary to apply some sort of automatic balancing technique. The paper proposes an algorithm that, contrary to RAS, can balance a commodity-flow system with unequal net row and column sums. The algorithm is applied to a recent revision of Danish capital stock estimates. Journal: Economic Systems Research Pages: 169-190 Issue: 2 Volume: 16 Year: 2004 Keywords: Updating, System Of National Accounts, Biproportion, Balancing Algorithm, Data Reliability, X-DOI: 10.1080/0953531042000219295 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531042000219295 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:16:y:2004:i:2:p:169-190 Template-Type: ReDIF-Article 1.0 Author-Name: Kurt Kratena Author-X-Name-First: Kurt Author-X-Name-Last: Kratena Author-Name: Gerold Zakarias Author-X-Name-First: Gerold Author-X-Name-Last: Zakarias Title: Input Coefficient Change Using Biproportional Econometric Adjustment Functions Abstract: This paper deals with the issue of updating input-output (I-O) coefficients within a large-scale disaggregated econometric macro-model of the Austrian economy. Capturing the changes in input coefficients over time is an important issue in I-O modelling due to a lack of recent benchmark I-O tables in most countries. Different approaches for updating these coefficients can be found in the literature, such as adjusting input coefficients 'along the row' and variable input coefficients 'along the column' stemming from factor input equations derived from production or cost functions. This paper combines these two approaches, yielding a biproportional method. For the adjustment, 'along the column' econometric factor input functions are used to derive a sum of non-energy intermediate inputs. For the adjustment 'along the row' the starting point is a set of adjustment functions described in the literature: special emphasis is placed on econometric specification and 'cointegration accounting'. Journal: Economic Systems Research Pages: 191-203 Issue: 2 Volume: 16 Year: 2004 Keywords: Updating, Biproportion, Cointegration Accounting, Econometrics, Cost Functions, X-DOI: 10.1080/0953531042000219303 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531042000219303 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:16:y:2004:i:2:p:191-203 Template-Type: ReDIF-Article 1.0 Author-Name: Louis de Mesnard Author-X-Name-First: Louis Author-X-Name-Last: de Mesnard Title: Biproportional Methods of Structural Change Analysis: A Typological Survey Abstract: Analysts often are interested in learning how much an exchange system has changed over time or how two different exchange systems differ. Identifying structural difference in exchange matrices can be performed using either 'directed' or 'undirected' methods. Directed methods are based on the computation and comparison of column- or row-normalizations of the matrices. The choice of row or column for the normalization implies a specific direction of the exchanges, so that the column-wise normalized results should not be compared to the row-wise normalized results. In this category fall the simple comparison of coefficient matrices and the causative method. Undirected methods do not impose such underlying constraints on exchanges. Hence, I present a set of undirected methods that can be used to compare structural matrices: the biproportional ordinary filter, the biproportional mean filter and the bi-Markovian filter. While doing so, I recall why the bicausative method must be dismissed. I then classify the methods according to their orientation and data needs, and illustrate how the results can differ from one method to the next using French tables for 1980 and 1997. Journal: Economic Systems Research Pages: 205-230 Issue: 2 Volume: 16 Year: 2004 Keywords: Biproportion, Ras, Causative Matrices, Structural Change, X-DOI: 10.1080/0953531042000219312 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531042000219312 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:16:y:2004:i:2:p:205-230 Template-Type: ReDIF-Article 1.0 Author-Name: Euijune Kim Author-X-Name-First: Euijune Author-X-Name-Last: Kim Author-Name: Geoffrey Hewings Author-X-Name-First: Geoffrey Author-X-Name-Last: Hewings Author-Name: Chowoon Hong Author-X-Name-First: Chowoon Author-X-Name-Last: Hong Title: An Application of an Integrated Transport Network- Multiregional CGE Model: a Framework for the Economic Analysis of Highway Projects Abstract: This paper develops a framework for the economic analysis of highway projects that is then used to estimate the dynamic economic effects of a highway project on the economic growth and the regional disparity in Korea. The framework is composed of a transport model and a multiregional Computable General Equilibrium (CGE) model. The transport model measures a change in interregional shortest distances and the accessibility due to the highway project. The CGE model estimates the spatial economic effects of the project on GDP, the price, exports, and the regional distribution of wages and population. The simulation allows policy makers to determine which highway development deserves the priority for investment, based on consideration of economic growth and regional economic equity in the long run. The simulation found that all the highway projects have positive effects on GDP and export growth as well as regional equity in terms of wage and population. Journal: Economic Systems Research Pages: 235-258 Issue: 3 Volume: 16 Year: 2004 Keywords: CGE model, income distribution, regional inequality, regional investment policy, X-DOI: 10.1080/0953531042000239356 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531042000239356 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:16:y:2004:i:3:p:235-258 Template-Type: ReDIF-Article 1.0 Author-Name: Sergio Rey Author-X-Name-First: Sergio Author-X-Name-Last: Rey Author-Name: Guy West Author-X-Name-First: Guy Author-X-Name-Last: West Author-Name: Mark Janikas Author-X-Name-First: Mark Author-X-Name-Last: Janikas Title: Uncertainty in Integrated Regional Models Abstract: This paper examines the nature of uncertainty in integrated econometric+input-output (ECIO) regional models. We focus on three sources of uncertainty: (a) econometric model parameter uncertainty; (b) econometric disturbance term uncertainty; and (c) input-output coefficient uncertainty. Through a series of Monte Carlo simulations we analyse the relative importance of each component as well as the question of how their interaction may propagate through the integrated model to affect the distributions of the endogenous variables. Our results suggest that there is no simple answer to the question of which source of uncertainty is most important in an integrated model. Instead, that answer is conditioned upon the focus of the analysis and whether the industry specific or macro level variables are of central concerns. Journal: Economic Systems Research Pages: 259-277 Issue: 3 Volume: 16 Year: 2004 Keywords: Input-output, econometric, integrated model, uncertainty, X-DOI: 10.1080/0953531042000239365 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531042000239365 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:16:y:2004:i:3:p:259-277 Template-Type: ReDIF-Article 1.0 Author-Name: Shigemi Kagawa Author-X-Name-First: Shigemi Author-X-Name-Last: Kagawa Author-Name: Hajime Inamura Author-X-Name-First: Hajime Author-X-Name-Last: Inamura Title: A Spatial Structural Decomposition Analysis of Chinese and Japanese Energy Demand: 1985-1990 Abstract: This paper proposes a spatial structural decomposition analysis to measure the effects of the changes in intra- and inter-country linkages on the embodied energy demand in the concerned country. For the empirical analysis, we have used the China- Japan inter-country input-output tables for 1985 and 1990, expressed in constant prices of 1990. The empirical results reveal that (1) at least for the period between 1985 and 1990, the effects of the non-competitive input structural changes in China on the primary energy requirements of Japan were negligible, and (2) the contribution of the Japanese final demand shifts on the total change in Chinese primary energy demand was 40 times larger than that of the Chinese final demand shifts on the primary energy requirements of Japan. The Japanese policy makers should concentrate on the energy impacts of the changes in the domestic production structure rather than the changes in the Chinese production structure. Journal: Economic Systems Research Pages: 279-299 Issue: 3 Volume: 16 Year: 2004 Keywords: Spatial structural decomposition analysis, embodied energy demand, China, Japan, X-DOI: 10.1080/0953531042000239374 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531042000239374 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:16:y:2004:i:3:p:279-299 Template-Type: ReDIF-Article 1.0 Author-Name: Stefan Giljum Author-X-Name-First: Stefan Author-X-Name-Last: Giljum Author-Name: Klaus Hubacek Author-X-Name-First: Klaus Author-X-Name-Last: Hubacek Title: Alternative Approaches of Physical Input-Output Analysis to Estimate Primary Material Inputs of Production and Consumption Activities Abstract: In the last few years, a number of studies have been presented that link material flow accounting and input-output analysis (based on monetary input-output tables) for the calculation of direct and indirect resource inputs for production and consumption activities. The compilation of the first physical input-output tables for some European countries in the 1990s opened new possibilities for linking physical accounting and input- output analysis. Physical input-output analysis has so far only been applied for selected materials, but it has not been used for comprehensive assessments of material requirements of economic activities. In this paper, possibilities and limits of this new input-output approach are clarified. We present and discuss a procedure similar to monetary input- output analysis and develop an alternative approach to account for primary inputs and waste otherwise not included in the analysis. Based on aggregated input-output tables for Germany, we present numerical examples intended to compare the alternative approaches of physical input-output analysis. Journal: Economic Systems Research Pages: 301-310 Issue: 3 Volume: 16 Year: 2004 Keywords: Material flow accounting (MFA), physical input-output analysis, physical input-output tables, X-DOI: 10.1080/0953531042000239383 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531042000239383 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:16:y:2004:i:3:p:301-310 Template-Type: ReDIF-Article 1.0 Author-Name: Sergio Parrinello Author-X-Name-First: Sergio Author-X-Name-Last: Parrinello Title: The Notion of Effectual Supply and the Theory of Normal Prices with Exhaustible Natural Resources Abstract: This paper proposes a revised theory of the classical notion of normal prices for an economy with exhaustible natural resources. The author introduces the notion of effectual supply and argues that Sraffa's equations, without the Hotelling rule equation, can be reformulated to deal with the existence of an exhaustible natural resource. Such a revision of a well-established theory requires a reinterpretation and methodological clarification of Sraffa's equations, but without a change in their mathematical form. The revised theory must focus on the effectual supply of the resource and it can ignore its total endowment. Journal: Economic Systems Research Pages: 311-322 Issue: 3 Volume: 16 Year: 2004 Keywords: Exhaustible resources, Hotelling rule, normal prices, Sraffian analysis, X-DOI: 10.1080/0953531042000239392 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531042000239392 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:16:y:2004:i:3:p:311-322 Template-Type: ReDIF-Article 1.0 Author-Name: Jeffrey Reimer Author-X-Name-First: Jeffrey Author-X-Name-Last: Reimer Author-Name: Thomas Hertel Author-X-Name-First: Thomas Author-X-Name-Last: Hertel Title: Estimation of International Demand Behaviour for Use with Input-Output Based Data Abstract: The making of projections often requires an economy-wide perspective, and the estimation of consumer demands at the international level. In this paper, an implicit, directly additive demand system (AIDADS) is estimated using cross- country data on consumer expenditures from two different sources: the International Comparison Programme (ICP), and the Global Trade Analysis Project (GTAP). The two data sets are found to produce results that are quite consistent despite their differing origins, and the fact that the former is based on consumer goods that embody wholesale/retail margins, while margin demands are treated separately in GTAP. Given the similarity of the results, the estimation based on GTAP data is favoured for economy-wide projection purposes because it can be readily matched to input-output based production and trade data. An additional benefit of the GTAP-based estimates is that they provide direct evidence concerning how aggregate margin expenditures vary with per capita income. Journal: Economic Systems Research Pages: 347-366 Issue: 4 Volume: 16 Year: 2004 Keywords: Demand system estimation, input- output data, wholesale retail margins, X-DOI: 10.1080/0953531042000304245 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531042000304245 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:16:y:2004:i:4:p:347-366 Template-Type: ReDIF-Article 1.0 Author-Name: Marco Missaglia Author-X-Name-First: Marco Author-X-Name-Last: Missaglia Author-Name: Paul de Boer Author-X-Name-First: Paul Author-X-Name-Last: de Boer Title: Food-For-Work versus Cash-For-Work: Emergency Assistance in Palestine Abstract: In this paper we analyse the provision of emergency assistance (food assistance, cash transfers, employment programmes, etc) to a country whose economy has been decimated since the start of the second intifada. We try to simulate the different potential effects brought about by these different policies and, in particular, to draw some policy implications concerning the Food-for-Work versus Cash-for-Work debate. To that end we have constructed a general equilibrium model of the Palestinian economy that we calibrate on the (pre-intifada) Social Accounting Matrix (SAM) of 1998. We give a so-called 'intifada-shock' to construct a counterfactual 'post-intifada' SAM which serves as basis for our policy simulations. We show that monetary aid from abroad is to be preferred to food aid from abroad. We argue that a labour-oriented approach (subsidizing the most labour-intensive sectors) is to be preferred to a welfare-oriented approach where the subsidized sectors produce those goods that dominate the consumption basket. Journal: Economic Systems Research Pages: 367-390 Issue: 4 Volume: 16 Year: 2004 Keywords: Food-for-work, cash-for-work, computable general equilibrium model, Palestine, X-DOI: 10.1080/0953531042000304254 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531042000304254 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:16:y:2004:i:4:p:367-390 Template-Type: ReDIF-Article 1.0 Author-Name: Manfred Lenzen Author-X-Name-First: Manfred Author-X-Name-Last: Lenzen Author-Name: Lise-Lotte Pade Author-X-Name-First: Lise-Lotte Author-X-Name-Last: Pade Author-Name: Jesper Munksgaard Author-X-Name-First: Jesper Author-X-Name-Last: Munksgaard Title: CO2 Multipliers in Multi-region Input-Output Models Abstract: In order to achieve equitable reduction targets, international trade has to be taken into account when assessing nations' responsibility for abating climate change. Especially for open economies such as Denmark, greenhouse gases embodied in internationally traded commodities can have a considerable influence on the national 'greenhouse gas responsibility'. We set up a five-region input-output model including Denmark, Germany, Sweden and Norway in order to calculate CO2 multipliers and trade balances. We investigate multidirectional feedback between these countries, and hence the error inherent in a single-region input-output model. We also examine the effect of aggregation on the model results. In the case of Denmark, an 11 Mt CO2 trade surplus resulting from a single-region model turns into balance when multidirectional trade is considered. Moreover, aggregated models are likely to result in significant errors. Therefore, both the type and the degree of aggregation used for modelling CO2 responsibilities could have a major bearing in international negotiations. Journal: Economic Systems Research Pages: 391-412 Issue: 4 Volume: 16 Year: 2004 Keywords: Multi-region input-output model, CO2 responsibility, feedback, aggregation, X-DOI: 10.1080/0953531042000304272 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531042000304272 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:16:y:2004:i:4:p:391-412 Template-Type: ReDIF-Article 1.0 Author-Name: Krishna Murty Author-X-Name-First: Krishna Author-X-Name-Last: Murty Title: Government Production Technologies in Canada: 1961 to 2000 Abstract: This study explores the long-term trends of government production technologies in Canada for the past four decades, i.e. from 1961 to 2000, using the annual Canadian input-output data. According to the industry technology concept of input-output analysis, each industry chooses its human and material resource requirements and uses them as inputs in its production processes. The shares of inputs to the total spending depict the technologies employed by the corresponding industries. As such, the long-term shifts in the input shares reveal the trends of industry production technologies for a given period. This study draws on this concept to explore the long-term trends of government production technologies. It also discusses the underlying reasons for the observed trends. Among other things, the study shows that the government production technologies in Canada were influenced not only by the changing functional patterns, but also by the changing input patterns of government expenditure. In addition, the combined shares of employee compensation and capital consumption, both own-account resources, steadily declined. On the other hand, the combined shares of purchased services and other inputs, which are resources acquired from outside sources, gradually rose during the past four decades. Journal: Economic Systems Research Pages: 413-433 Issue: 4 Volume: 16 Year: 2004 Keywords: Government services, production analysis, Canada, X-DOI: 10.1080/0953531042000304281 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531042000304281 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:16:y:2004:i:4:p:413-433 Template-Type: ReDIF-Article 1.0 Author-Name: Andrew Brody Author-X-Name-First: Andrew Author-X-Name-Last: Brody Title: Pace, Pattern and Phase: A Morphology of Cycles Abstract: A closed dynamic Leontief model is implemented for the Business, Government and Household sectors of the Hungarian and the US economies at the end of the past century. It is built on rough estimates of its flow and stock coefficients. The growth rate and the length and pattern of the four most familiar cycles are reasonably well approximated by the model and are similar for the two countries in spite of the large discrepancy in the proportions of the equilibrium quantity vectors. The mathematics of cycles (for discrete or continuous time) is also discussed. Fluctuations are shown to be the elementary, basic and unavoidable consequence of all productive activities. They will emerge even in the absence of any price mechanism. Journal: Economic Systems Research Pages: 435-450 Issue: 4 Volume: 16 Year: 2004 Keywords: Equilibrium, cycle, national accounts, X-DOI: 10.1080/0953531042000304290 File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953531042000304290 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:16:y:2004:i:4:p:435-450 Template-Type: ReDIF-Article 1.0 Author-Name: Miguel Angel Tarancon Author-X-Name-First: Miguel Angel Author-X-Name-Last: Tarancon Author-Name: Pablo Del Rio Author-X-Name-First: Pablo Del Author-X-Name-Last: Rio Title: Projection of input-output tables by means of mathematical programming based on the hypothesis of stable structural evolution Abstract: The high costs involved in the construction of input-output tables (IOTs) using survey methods, makes the development of mathematical projection techniques attractive. An adjustment and projection method of IOTs, based on mathematical programming techniques, is proposed here. The flexibility and ability to include information on elements and aggregates is one of this method's main advantages over alternative adjustment methods. Among the information included in the adjustment, the most relevant is related to the evolution hypothesis of the production structure under stable conditions. This leads to the inclusion of intervals for coefficients. A set of adjusted tables, consistent with their own internal structure, is obtained after an interactive and iterative process that reconciles all information sources. A projection of IOTs in Spain for the period 1995-1998 is undertaken to examine the accuracy of the method. Journal: Economic Systems Research Pages: 1-23 Issue: 1 Volume: 17 Year: 2005 Keywords: Input-output projection, mathematical programming, structural evolution, X-DOI: 10.1080/09535310500034119 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310500034119 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:17:y:2005:i:1:p:1-23 Template-Type: ReDIF-Article 1.0 Author-Name: Jurgen Essletzbichler Author-X-Name-First: Jurgen Author-X-Name-Last: Essletzbichler Author-Name: David Rigby Author-X-Name-First: David Author-X-Name-Last: Rigby Title: Technological evolution as creative destruction of process heterogeneity: evidence from US plant-level data Abstract: Change in evolutionary economics is predicated on the creative destruction of variety. Despite the importance of the concept of variety, or heterogeneity, in evolutionary economic theory, empirical work that examines the character of variety - its extent and its persistence - is still scarce. Drawing on unpublished, micro-level data from the US Bureau of the Census, this paper examines the characteristics of process heterogeneity in selected US manufacturing industries. More specifically the paper has three goals. First, to demonstrate that heterogeneity in plant technologies exists and that it persists over time even within relatively mature industrial sectors. Second, to examine the veracity of the processes that generate and destroy heterogeneity in production technology within narrowly defined industries. Third, to link the heterogeneity of plant-level techniques of production to the pace and direction of technological change at the level of the industry. Journal: Economic Systems Research Pages: 25-45 Issue: 1 Volume: 17 Year: 2005 Keywords: Evolutionary economics, heterogeneity, technological change, LRD, X-DOI: 10.1080/09535310500034168 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310500034168 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:17:y:2005:i:1:p:25-45 Template-Type: ReDIF-Article 1.0 Author-Name: Kurt Kratena Author-X-Name-First: Kurt Author-X-Name-Last: Kratena Title: Prices and factor demand in an endogenized input-output model Abstract: This paper combines factor demand functions (for intermediate input and labour) and price equations (derived from a Generalized Leontief cost function) with the traditional input-output price model. The cost functions determine factor demands for materials and labour as well as output prices at given input prices. At the second level of aggregation, the intermediate demand as a single input is split proportional to the elements in the column of the technical coefficients matrix. The emphasis in this endogenization of technical coefficients is on two features. First, the repercussion of output on input prices, and, second, the link between the econometric model for the supply side and the input-output demand model. Journal: Economic Systems Research Pages: 47-56 Issue: 1 Volume: 17 Year: 2005 Keywords: Input-output price model, Generalized Leontief cost functions, endogenous technical coefficients, X-DOI: 10.1080/09535310500034200 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310500034200 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:17:y:2005:i:1:p:47-56 Template-Type: ReDIF-Article 1.0 Author-Name: Matteo Manera Author-X-Name-First: Matteo Author-X-Name-Last: Manera Author-Name: Bruno Sitzia Author-X-Name-First: Bruno Author-X-Name-Last: Sitzia Title: Empirical factor demands and flexible functional forms: a bayesian approach Abstract: In this paper we compare classical econometrics, calibration and Bayesian inference in the context of the empirical analysis of factor demands. Our application is based on a popular flexible functional form for the firm's cost function, namely Diewert's Generalized Leontief function, and uses the well-known Berndt and Wood 1947-1971 KLEM data on the US manufacturing sector. We illustrate how the Gibbs sampling methodology can be easily used to calibrate parameter values and elasticities on the basis of previous knowledge from alternative studies on the same data, but with different functional forms. We rely on a system of mixed non-informative diffuse priors for some key parameters and informative tight priors for others. Within the Gibbs sampler, we employ rejection sampling to incorporate parameter restrictions, which are suggested by economic theory but in general rejected by economic data. Our results show that values of those parameters that relate to non-informative priors are almost equal to the standard SUR estimates, whereas differences come out for those parameters to which we have assigned informative priors. Moreover, discrepancies can be appreciated in some crucial parameter estimates obtained with or without rejection sampling. Journal: Economic Systems Research Pages: 57-75 Issue: 1 Volume: 17 Year: 2005 Keywords: Factor demands, flexible functional forms, calibration, Bayesian inference, X-DOI: 10.1080/09535310500034333 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310500034333 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:17:y:2005:i:1:p:57-75 Template-Type: ReDIF-Article 1.0 Author-Name: Reiner Wolff Author-X-Name-First: Reiner Author-X-Name-Last: Wolff Title: A global robustness measure for input-output projections from ESA and SNA tables Abstract: Input-output (interindustry) data are in wide use in empirical research and constitute an integral part of the European System of Accounts (ESA) and of the System of National Accounts (SNA). In a strict sense, however, these data are merely estimates of the true economic relationships. Therefore, we suggest a measure of robustness of input-output projections with respect to errors or changes in the underlying Leontief matrix. Our measure is based on the mathematical theory of norms and characterizes a complete Leontief matrix. Thereby, no assumptions are required on the distribution of the matrix elements. We discuss alternative numerical-computing algorithms and provide useful bounds and approximation formulas. The paper concludes with a large set of empirical sample applications. Journal: Economic Systems Research Pages: 77-93 Issue: 1 Volume: 17 Year: 2005 Keywords: Condition problem, Leontief matrix, input-output projections, robustness, X-DOI: 10.1080/09535310500034341 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310500034341 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:17:y:2005:i:1:p:77-93 Template-Type: ReDIF-Article 1.0 Author-Name: Linda Ferguson Author-X-Name-First: Linda Author-X-Name-Last: Ferguson Author-Name: Peter Mcgregor Author-X-Name-First: Peter Author-X-Name-Last: Mcgregor Author-Name: J. Kim Swales Author-X-Name-First: J. Kim Author-X-Name-Last: Swales Author-Name: Karen Turner Author-X-Name-First: Karen Author-X-Name-Last: Turner Author-Name: Ya Ping Yin Author-X-Name-First: Ya Ping Author-X-Name-Last: Yin Title: Incorporating sustainability indicators into a computable general equilibrium model of the scottish economy Abstract: In recent years, the notion of sustainable development has begun to figure prominently in the regional, as well as the national, policy concerns of many industrialized countries. Indicators have typically been used to monitor changes in economic, environmental and social variables to show whether economic development is on a sustainable path. In this paper we endogenize individual and composite environmental indicators within an appropriately specified computable general equilibrium modelling framework for Scotland. In principle, at least, this represents a very powerful modelling tool that can inform the policy making process by identifying the impact of any exogenous policy change on the key endogenous environmental and economic indicators. It can also identify the effects of any binding environmental targets on economic activity. Journal: Economic Systems Research Pages: 103-140 Issue: 2 Volume: 17 Year: 2005 Keywords: Computable general equilibrium modelling, environmental indicators, sustainability policy, X-DOI: 10.1080/09535310500114838 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310500114838 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:17:y:2005:i:2:p:103-140 Template-Type: ReDIF-Article 1.0 Author-Name: Faye Duchin Author-X-Name-First: Faye Author-X-Name-Last: Duchin Title: A world trade model based on comparative advantage with m regions, n goods, and k factors Abstract: This paper describes the World Trade Model, a linear program that determines world prices, scarcity rents, and international trade flows based on comparative advantage in a world economy with m regions, n goods, and k factors. The new model generalizes the World Model of Leontief et al. (1977) in ways that make it particularly useful for analyzing scenarios about sustainable development. Major properties of the model are demonstrated, and sources of the gains from trade are identified for the world as a whole and for individual regions. Illustrative results are reported for a 10-region, 8-good, 3-factor model of the world economy. Journal: Economic Systems Research Pages: 141-162 Issue: 2 Volume: 17 Year: 2005 Keywords: International trade, world model, comparative advantage, linear programming, X-DOI: 10.1080/09535310500114903 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310500114903 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:17:y:2005:i:2:p:141-162 Template-Type: ReDIF-Article 1.0 Author-Name: Akira Okamoto Author-X-Name-First: Akira Author-X-Name-Last: Okamoto Title: Simulating fundamental tax reforms in an aging Japan Abstract: This paper studies in a quantitative way the macroeconomic and welfare effects of introducing progressive expenditure taxation, in a situation of the aging of the Japanese population. It undertakes a simulation analysis taking account of the general equilibrium effects of intragenerational inequality, which increases with a transition to an aging society. The simulation results suggest that progressive expenditure taxation has advantages over progressive labor income taxation on the grounds of efficiency and equity. Thus, a shift to progressive expenditure taxation can overcome the large welfare loss that would occur under the current tax system as Japan ages. Journal: Economic Systems Research Pages: 163-185 Issue: 2 Volume: 17 Year: 2005 Keywords: Aging population, tax reform, life-cycle general equilibrium model, simulation, X-DOI: 10.1080/09535310500114911 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310500114911 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:17:y:2005:i:2:p:163-185 Template-Type: ReDIF-Article 1.0 Author-Name: Bjarne Madsen Author-X-Name-First: Bjarne Author-X-Name-Last: Madsen Author-Name: Chris Jensen-butler Author-X-Name-First: Chris Author-X-Name-Last: Jensen-butler Title: Spatial accounting methods and the construction of spatial social accounting matrices Abstract: The paper examines modifications to Regional Accounts used to construct regional and interregional Social Accounting Matrices (SAMs). It is argued that as the size of the basic areal unit used in studies declines, more traditional accounting approaches are no longer satisfactory. A three-dimensional spatial approach (termed two-by-two-by-two) to the identification of fundamental dimensions (commodity and factor market; geographical; and social accounts) has been developed in contrast to the more traditional non-spatial approach (termed two-by-two). This involves a novel approach using the geographical concepts of place of production for production activities, place of residence for institutions, marketplace for commodities and marketplace for factors. The use of these concepts permits accounting balances to be calculated at the spatial level. The theoretical basis of the spatial regional accounting model is presented and an example of the construction of a Danish Interregional SAM (SAM-K) is examined. Particular attention is given to data requirements, showing that these are much more modest than generally assumed. Journal: Economic Systems Research Pages: 187-210 Issue: 2 Volume: 17 Year: 2005 Keywords: Interregional SAM, spatial accounting, data requirements, X-DOI: 10.1080/09535310500114994 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310500114994 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:17:y:2005:i:2:p:187-210 Template-Type: ReDIF-Article 1.0 Author-Name: Xikang Chen Author-X-Name-First: Xikang Author-X-Name-Last: Chen Author-Name: Ju-e Guo Author-X-Name-First: Ju-e Author-X-Name-Last: Guo Author-Name: Cuihong Yang Author-X-Name-First: Cuihong Author-X-Name-Last: Yang Title: Extending the input-output model with assets Abstract: In this paper, the input-output model is extended with assets. It allows us to examine the various assets that are held and used in production. The requirements of assets that must be held by each sector can thus be specified. Extending the input-output model with assets provides a better alternative to the capital stock matrix in the standard Systems of National Accounts. The input-output model is extended by taking the depreciation of fixed assets into full account. This extension allows for the calculation of total holding coefficients that express the amount of assets that are required to be held in each sector in order to satisfy a unit of final demand. In addition, a dynamic version of the extended model is presented. The extended input-output model has been widely applied in China for various purposes. Journal: Economic Systems Research Pages: 211-225 Issue: 2 Volume: 17 Year: 2005 Keywords: Assets, extended input-output models, total labor consumption coefficients, total holding coefficients, dynamic input-output model, X-DOI: 10.1080/09535310500115074 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310500115074 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:17:y:2005:i:2:p:211-225 Template-Type: ReDIF-Article 1.0 Author-Name: Malcolm Beynon Author-X-Name-First: Malcolm Author-X-Name-Last: Beynon Author-Name: Max Munday Author-X-Name-First: Max Author-X-Name-Last: Munday Author-Name: Annette Roberts Author-X-Name-First: Annette Author-X-Name-Last: Roberts Title: Ranking sectors using fuzzy output multipliers Abstract: Using input-output analysis to model the effects of changes in industry final demands is fraught with problems, many of which relate to the fundamental limitations of the concomitant linear framework. A further issue concerns the accuracy of the results, a consequence of the uncertainty surrounding the values of multipliers. Such uncertainty can create problems where the values of output multipliers are used to inform resource directions. This paper utilizes (and develops) a fuzzy input-output model and investigates the ranking of industries based on fuzzy output multipliers. The non-triviality of the fuzzy model is exposited in a general problem, where imprecision is defined by a proportional level of imprecision (fuzziness) in the technical coefficients. Through a nascent method for ranking fuzzy numbers, comparisons are made between the fuzzy and more traditional (non-fuzzy) analysis. Journal: Economic Systems Research Pages: 237-253 Issue: 3 Volume: 17 Year: 2005 Keywords: Fuzzy set theory, fuzzy output multipliers, input-output, key sector analysis, X-DOI: 10.1080/09535310500221716 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310500221716 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:17:y:2005:i:3:p:237-253 Template-Type: ReDIF-Article 1.0 Author-Name: Ezequiel Uriel Author-X-Name-First: Ezequiel Author-X-Name-Last: Uriel Author-Name: Javier Ferri Author-X-Name-First: Javier Author-X-Name-Last: Ferri Author-Name: Maria Luisa Molto Author-X-Name-First: Maria Luisa Author-X-Name-Last: Molto Title: Estimation of an Extended SAM with household production for Spain 1995 Abstract: This paper implements the conceptual framework sketched by Pyatt (1990) to construct an extended Social Accounting Matrix for Spain in 1995 (ESAM-95) to consider, in addition to the market economy, the production of services provided by households through unpaid work. In doing so, the ESAM-95 integrates the accounts related to market activities (ESA accounts) with non-market activities (non-ESA accounts) in a consistent way. Additional classifications are introduced in both ESA and non-ESA accounts in order to disaggregate the institutional accounts by household type and those of production factors by educational level and gender. The extended SAM is useful to calibrate CGE models in which the distribution of time between paid and unpaid work is a relevant variable. Journal: Economic Systems Research Pages: 255-278 Issue: 3 Volume: 17 Year: 2005 Keywords: Social accounting matrix, use of time, household production, X-DOI: 10.1080/09535310500221773 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310500221773 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:17:y:2005:i:3:p:255-278 Template-Type: ReDIF-Article 1.0 Author-Name: Wulong Gu Author-X-Name-First: Wulong Author-X-Name-Last: Gu Author-Name: Lori Whewell Rennison Author-X-Name-First: Lori Whewell Author-X-Name-Last: Rennison Title: The effect of trade on productivity growth and the demand for skilled workers in Canada Abstract: We use an input-output model to examine the effect of trade integration on productivity growth and the demand for skilled workers in Canada for the period 1981-1997. We find that trade integration has a positive effect on both labour productivity and total factor productivity. Labour productivity and total factor productivity grew faster in export and import industries than in the total business sector over this period, and this productivity growth gap has widened over time. Canada is found to have a comparative advantage in capital- and natural-resource-intensive industries, although it has declined over time. We find that trade integration has little effect on the demand for skilled and unskilled workers in Canada. Journal: Economic Systems Research Pages: 279-296 Issue: 3 Volume: 17 Year: 2005 Keywords: Trade, productivity, skills, comparative advantage, X-DOI: 10.1080/09535310500221815 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310500221815 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:17:y:2005:i:3:p:279-296 Template-Type: ReDIF-Article 1.0 Author-Name: Dong Guo Author-X-Name-First: Dong Author-X-Name-Last: Guo Author-Name: Geoffrey Hewings Author-X-Name-First: Geoffrey Author-X-Name-Last: Hewings Author-Name: Michael Sonis Author-X-Name-First: Michael Author-X-Name-Last: Sonis Title: Integrating decomposition approaches for the analysis of temporal changes in economic structure: an application to Chicago's economy from 1980 to 2000 Abstract: This paper presents an attempt to integrate two flow decomposition methods to analyse temporal changes in a region's economic structure. The two methods of structural analysis are push-pull decomposition analysis and structural Q-analysis. Push-pull analysis presents a quasi-optimization decomposition of a set of matrices with actual intersectoral economic flows into a weighted set of matrices, while structural Q-analysis provides a form in which the structure of these decomposed flows can be considered. The paper provides an expository application to Chicago's economic structure over the period of 1980 to 2000, to reveal a complementary perspective of hollowing-out the production process in the Chicago economy that was identified in previous studies. Journal: Economic Systems Research Pages: 297-315 Issue: 3 Volume: 17 Year: 2005 Keywords: Push-pull analysis, structural Q-analysis, hollowing-out process, Chicago economy, X-DOI: 10.1080/09535310500221849 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310500221849 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:17:y:2005:i:3:p:297-315 Template-Type: ReDIF-Article 1.0 Author-Name: Imre Dobos Author-X-Name-First: Imre Author-X-Name-Last: Dobos Author-Name: Adel Floriska Author-X-Name-First: Adel Author-X-Name-Last: Floriska Title: A Dynamic Leontief Model with Non-renewable Resources Abstract: In this paper we study a generalization of the dynamic Leontief input-output model. We extend the standard dynamic Leontief model with the balance equation of non-renewable resources. Obviously, the non-renewable stocks will decrease, exploiting primary resources. In this study we examine the controllability of this extended model by taking the consumption as the control parameter. Assuming balanced growth for both consumption and production, we investigate how long these scarce resources will cover the input needs of production and how the lifetime of the system depends on the balanced growth rate and on the consumption. In doing so, we apply classic results from control theory and on eigenvalue problems in linear algebra. Journal: Economic Systems Research Pages: 317-326 Issue: 3 Volume: 17 Year: 2005 Keywords: Dynamical systems, eigenvalue problem, control theory, environmental management, X-DOI: 10.1080/09535310500221856 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310500221856 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:17:y:2005:i:3:p:317-326 Template-Type: ReDIF-Article 1.0 Author-Name: Jan Oosterhaven Author-X-Name-First: Jan Author-X-Name-Last: Oosterhaven Title: GRAS versus minimizing absolute and squared differences: a comment Abstract: Junius and Oosterhaven (2003) developed the GRAS algorithm that minimizes the information gain when updating input-output tables with both positive and negative signs. Jackson and Murray (2004), however, claim that minimizing squared differences in coefficients produces a smaller information gain, which is theoretically impossible. In this comment, calculation errors are sorted out from differences in measures, and it is shown that the information gain needs to be taken in absolute terms when increasing and decreasing cell values occur together. The numerical results show that GRAS outperforms both sign-preserving alternatives in all but one comparison of lesser economic importance. Moreover, as opposed to the result of Jackson and Murray, they show that minimizing absolute differences consistently outperforms minimizing squared differences, which overweighs large errors in small coefficients. Journal: Economic Systems Research Pages: 327-331 Issue: 3 Volume: 17 Year: 2005 Keywords: RAS, biproportional updating, input-output, information gain, X-DOI: 10.1080/09535310500221864 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310500221864 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:17:y:2005:i:3:p:327-331 Template-Type: ReDIF-Article 1.0 Author-Name: Sangwon Suh Author-X-Name-First: Sangwon Author-X-Name-Last: Suh Author-Name: Shigemi Kagawa Author-X-Name-First: Shigemi Author-X-Name-Last: Kagawa Title: Industrial ecology and input-output economics: an introduction Abstract: Industrial ecology aims at closing material cycles within industrial systems by developing symbiotic functions among system components. How industrial systems are structured and how they transform, use and discard natural resources is, therefore, the key focus of industrial ecology. As an introduction to this issue of Economic Systems Research, which is themed around industrial ecology, the current paper aims to provide a background on industrial ecology, highlighting the role of and contributions from input-output economics. A brief history of industrial ecology and input-output economics is presented, focusing on a number of specific areas where the two disciplines overlap. The role of input-output economics in industrial ecology is discussed in terms of how input-output economics has been, and is being, utilized in industrial ecology. Finally the papers that are presented in this issue are briefly introduced. Journal: Economic Systems Research Pages: 349-364 Issue: 4 Volume: 17 Year: 2005 Keywords: Input-output economics, inter-industry analysis, industrial ecology, industrial metabolism, history, X-DOI: 10.1080/09535310500283476 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310500283476 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:17:y:2005:i:4:p:349-364 Template-Type: ReDIF-Article 1.0 Author-Name: Blanca Gallego Author-X-Name-First: Blanca Author-X-Name-Last: Gallego Author-Name: Manfred Lenzen Author-X-Name-First: Manfred Author-X-Name-Last: Lenzen Title: A consistent input-output formulation of shared producer and consumer responsibility Abstract: Growing interest in environmental and socio-economic accounting at the sub-regional and organisational level requires a consistent and comprehensive method for computing and reporting responsibility for impacts of industrial production such as water use, pollution, or employment. This work presents a formulation for allocating responsibility for production impacts consistently amongst all agents such as consumers, producers, workers, and investors throughout demand and supply chains, in a way that reflects their contribution to the production process. Generalised input-output theory is used to re-trace the flow of past inter-industrial transactions, and examine ex-post how, for example, inputs of resources or outputs of pollution were associated with these transactions. Introducing the concept of a responsibility share we enable the division of responsibility into mutually exclusive and collectively exhaustive portions that are assigned to the different economic sectors, and that become consistently smaller as we move away from the location of the impact within the supply or demand chain system. Journal: Economic Systems Research Pages: 365-391 Issue: 4 Volume: 17 Year: 2005 Keywords: Extended responsibility, producer, consumer, supply chain, environmental impact, X-DOI: 10.1080/09535310500283492 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310500283492 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:17:y:2005:i:4:p:365-391 Template-Type: ReDIF-Article 1.0 Author-Name: Yasushi Kondo Author-X-Name-First: Yasushi Author-X-Name-Last: Kondo Author-Name: Shinichiro Nakamura Author-X-Name-First: Shinichiro Author-X-Name-Last: Nakamura Title: Waste input-output linear programming model with its application to eco-efficiency analysis Abstract: This paper is concerned with a decision analytic extension of the waste input-output model, based on the method of linear programming. The resulting model, which is named the waste input-output linear programming model, allows one to automatically obtain an 'optimal' waste management and recycling strategy from among a given set of alternative feasible strategies. The model can thus explore the extent to which a given measure of eco-efficiency can be maximized by an appropriate combination of existing (technological and resource) potentials. An application to Japanese data is also presented. Journal: Economic Systems Research Pages: 393-408 Issue: 4 Volume: 17 Year: 2005 Keywords: Waste input-output analysis, linear programming, life-cycle assessment, eco-efficiency, X-DOI: 10.1080/09535310500283526 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310500283526 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:17:y:2005:i:4:p:393-408 Template-Type: ReDIF-Article 1.0 Author-Name: Shigemi Kagawa Author-X-Name-First: Shigemi Author-X-Name-Last: Kagawa Title: Inter-industry analysis, consumption structure, and the household waste production structure Abstract: The standard waste input-output models for single region and multi-regions do not endogenously treat the dependent relationship between income distribution (household consumption) and household waste generation. As in Miyazawa and Masegi (1963), I introduce the propagation process of income distribution and household waste generation into the extended input-output analysis and reveal the hidden money flow resulting from the industrial and household waste disposal behaviour. From the empirical analysis, I find the endogenous income propagation effect resulting from the household waste treatments induced by unit household consumption (one million yen) was remarkably small, as compared to that for ordinary commodity productions. I also find that the contribution of industrial and household waste treatment and recycling activities to the 1995 Japanese economy was about one trillion yen (0.1% of the gross domestic output), considering the endogenous income propagation effects induced by the consumption behaviour of labours engaging in the waste treatments. Interestingly, the empirical results reveal that the contribution of one ton of the industrial waste to the Japanese economy was 5,730 yen, while one ton of the household waste brought about 8,266 yen of total economic impact. This indicates that the household waste disposal activity was more beneficial than the industrial waste disposal activity, considering the endogenous income propagation effects. Journal: Economic Systems Research Pages: 409-423 Issue: 4 Volume: 17 Year: 2005 Keywords: Social accounting multipliers, municipal solid waste, industrial waste, X-DOI: 10.1080/09535310500283559 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310500283559 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:17:y:2005:i:4:p:409-423 Template-Type: ReDIF-Article 1.0 Author-Name: Mette Wier Author-X-Name-First: Mette Author-X-Name-Last: Wier Author-Name: Line Block Christoffersen Author-X-Name-First: Line Block Author-X-Name-Last: Christoffersen Author-Name: Trine Jensen Author-X-Name-First: Trine Author-X-Name-Last: Jensen Author-Name: Ole Pedersen Author-X-Name-First: Ole Author-X-Name-Last: Pedersen Author-Name: Hans Keiding Author-X-Name-First: Hans Author-X-Name-Last: Keiding Author-Name: Jesper Munksgaard Author-X-Name-First: Jesper Author-X-Name-Last: Munksgaard Title: Evaluating sustainability of household consumption—Using DEA to assess environmental performance Abstract: We assess environmental performance across product types and across household types in order to evaluate environmental pressure from human activities. To so do, we combine family budget statistics, input-output tables, energy and material flow matrices, various types of emissions and environmental effects indices for various effect types (e.g. a global warming potential index, an ozone depletion potential index, etc). Subsequently, using DEA (Data Envelopment Analysis), we use these weighted environmental effects indices to form one environ-mental performance score for each family type and product type. We find that the environmental performance of each family type changes considerably across environmental effect types. The analysis of the overall environmental performance scores shows that families living in urban flats, especially the young and elderly families, have the most environmentally friendly consum-ption pattern. Middle income families living in houses have the least environmentally friendly consumer basket, and these families constitute a high share of all families in Denmark. Journal: Economic Systems Research Pages: 425-447 Issue: 4 Volume: 17 Year: 2005 Keywords: Environmental performance, product ranking, sustainable household consumption, DEA analysis, integrated modelling, X-DOI: 10.1080/09535310500284276 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310500284276 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:17:y:2005:i:4:p:425-447 Template-Type: ReDIF-Article 1.0 Author-Name: Sangwon Suh Author-X-Name-First: Sangwon Author-X-Name-Last: Suh Title: Developing a sectoral environmental database for input-output analysis: the comprehensive environmental data archive of the US Abstract: This paper elucidates the data sources and data preparation procedures used in developing the sectoral environmental data of the US. The database described in this paper interlinks (1) Input-Output Table (IOT), (2) environmental emission and resources use statistics, and (3) characterization factors from Life Cycle Impact Assessment (LCIA) that quantify environmental impacts. Each of these three modules was designed to describe (1) the economic process that generates environmental interventions, (2) the quantity of the environmental intervention generated and (3) the process through which these environmental interventions realize environmental impacts, respectively. The resulting database encompasses 1344 different types of environmental interventions generated by 480 commodities of the US input-output table, linked to 86 commonly used LCIA models. This paper aims to share the experiences of and to elucidate the procedures and the data sources used for developing the sectoral environmental database in the US. Journal: Economic Systems Research Pages: 449-469 Issue: 4 Volume: 17 Year: 2005 Keywords: Sectoral environmental data, input-output analysis, life cycle impact assessment, X-DOI: 10.1080/09535310500284326 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310500284326 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:17:y:2005:i:4:p:449-469 Template-Type: ReDIF-Article 1.0 Author-Name: Henryk Gurgul Author-X-Name-First: Henryk Author-X-Name-Last: Gurgul Author-Name: Paweł Majdosz Author-X-Name-First: Paweł Author-X-Name-Last: Majdosz Title: Interfund linkage analysis: the case of the polish pension fund sector Abstract: Although fund activities whose target is to attract the members of rivals would seem to be very important for a proper evaluation of pension fund achievements, this topic has not been looked at by researchers. This paper presents an approach to assess the interfund effects of savings transfers based upon Polish tables of transfers published by the KNUiFE over the period from the fourth quarter of 2001 to the first quarter of 2004. Some useful indicators are suggested. By means of these indicators a taxonomy of pension funds operating in Poland was carried out. We also find which transfers of savings are the most important, i.e. which changes in the relative level of such transfers cause the largest perturbations in the whole pension fund sector. Journal: Economic Systems Research Pages: 1-27 Issue: 1 Volume: 18 Year: 2006 Keywords: Pension funds, savings' transfers, sensitivity matrix, X-DOI: 10.1080/09535310500440829 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310500440829 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:18:y:2006:i:1:p:1-27 Template-Type: ReDIF-Article 1.0 Author-Name: Andres Blancas Author-X-Name-First: Andres Author-X-Name-Last: Blancas Title: Interinstitutional linkage analysis: a social accounting matrix multiplier approach for the Mexican economy Abstract: By analogy to inter-industry analysis, this paper addresses the Inter-institutional linkage analysis through an accounting multiplier approach and a social accounting matrix framework that has a flow of funds. Such an analysis provides a useful tool to identify and quantify structural features of an economy in terms of productive and financial backward and forward linkage indices, which are estimated from the accounting multipliers. As an empirical application of this analysis, we identify and measure the accounting multipliers and the respective linkage indices for the Mexican economy. The results may help to improve the quality of policy decisions by detecting key linkage and partial linkage accounts (production sectors or institutions) and by providing a better understanding of how an impact of an initial exogenous injection runs within a complex economic structure. Journal: Economic Systems Research Pages: 29-59 Issue: 1 Volume: 18 Year: 2006 Keywords: Inter-institutional linkage analysis, social accounting matrix, accounting multipliers, Mexican economy, X-DOI: 10.1080/09535310500440548 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310500440548 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:18:y:2006:i:1:p:29-59 Template-Type: ReDIF-Article 1.0 Author-Name: Rutger Hoekstra Author-X-Name-First: Rutger Author-X-Name-Last: Hoekstra Author-Name: Marco Janssen Author-X-Name-First: Marco Author-X-Name-Last: Janssen Title: Environmental responsibility and policy in a two-country dynamic input-output model Abstract: Increased spatial dependency of economic activities, as well as spatial differentiation of production and consumption, has implications for environmental policy. One of the issues that has gained importance is the responsibility for the emissions from products that cross national boundaries during the environmental policy's lifetime. This paper discusses the different ethical views of environmental responsibility. Furthermore, the policy measures that are associated with the different viewpoints are analyzed in a novel dynamic two-country two-sector dynamic input-output model. A numerical example is modeled to assess taxing schemes that are based on these ethical viewpoints. The results show that a tax on the 'embodied' environmental pressure, which is generally viewed as ethically preferable, is less effective that the current policy of taxing consumers of products. Our discussion however shows that these results are very dependent on the model structure and initial parameters that are used. Nevertheless, the model illustrates that policies that are based on ethically superior standpoints may have detrimental distortionary effects in the dynamic setting. Journal: Economic Systems Research Pages: 61-84 Issue: 1 Volume: 18 Year: 2006 Keywords: Dynamic input-output model, international trade, technological change, environmental responsibility, X-DOI: 10.1080/09535310500440894 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310500440894 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:18:y:2006:i:1:p:61-84 Template-Type: ReDIF-Article 1.0 Author-Name: Erik Dietzenbacher Author-X-Name-First: Erik Author-X-Name-Last: Dietzenbacher Author-Name: Jesper Stage Author-X-Name-First: Jesper Author-X-Name-Last: Stage Title: Mixing oil and water? Using hybrid input-output tables in a Structural decomposition analysis Abstract: Input-output studies of energy use frequently adopt the so-called hybrid table, where the rows corresponding to energy sectors are in energy units rather than in monetary units. However, we show that, in structural decomposition analyses, this hybrid approach may induce arbitrary results that depend on the choice of units, rather than on changes in economic structure. This is because an economically meaningless sum of monetary and energy units enters the calculations. Our proposed solution to this problem is based on using a sum of monetary units instead, thus avoiding this attempt to mix oil and water. Journal: Economic Systems Research Pages: 85-95 Issue: 1 Volume: 18 Year: 2006 Keywords: Structural decomposition analysis, input-output analysis, energy use, hybrid input-output tables, X-DOI: 10.1080/09535310500440803 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310500440803 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:18:y:2006:i:1:p:85-95 Template-Type: ReDIF-Article 1.0 Author-Name: Paul de Boer Author-X-Name-First: Paul Author-X-Name-Last: de Boer Author-Name: Marco Missaglia Author-X-Name-First: Marco Author-X-Name-Last: Missaglia Title: Economic consequences of intifada Abstract: In 2003 the World Bank (WB) and the International Monetary Fund (IMF) published estimates of macro-economic indicators for 2002 of the economy of Palestine. The WB used a micro-founded recursive dynamic computable general equilibrium (CGE) model, calibrated on the 1998 Social Accounting Matrix (SAM) of Palestine, to which shocks were applied, whereas the IMF based its estimates on a macro-founded income-expenditure model relying on more recent data. It turned out that there were substantial differences: the estimate by the WB of the real gross national income (at 1998 prices) was 25% less than the corresponding figure calculated by the IMF. This huge difference is not only relevant for a full understanding of the economic consequences of the intifada, but also for the size of the international community intervention. In this paper we propose our own evaluation with the help of a static CGE model, based on the 1998 SAM and the so-called intifada shock derived from data of the WB that we constructed for the analysis of some forms of emergency assistance in a previous article. It turns out that our estimates, based on an entirely different methodology, are remarkably close to those of the IMF. Journal: Economic Systems Research Pages: 97-106 Issue: 1 Volume: 18 Year: 2006 Keywords: Macro-economic indicators, computable general equilibrium model, Palestine, X-DOI: 10.1080/09535310500440779 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310500440779 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:18:y:2006:i:1:p:97-106 Template-Type: ReDIF-Article 1.0 Author-Name: Marco Percoco Author-X-Name-First: Marco Author-X-Name-Last: Percoco Author-Name: Geoffrey Hewings Author-X-Name-First: Geoffrey Author-X-Name-Last: Hewings Author-Name: Lanfranco Senn Author-X-Name-First: Lanfranco Author-X-Name-Last: Senn Title: Structural change decomposition through a global sensitivity analysis of input-output models Abstract: Sensitivity analysis has become an important tool to test the robustness of estimated economic models. In this paper we propose the use of simulation-based sensitivity analysis to identify the fundamental structure of the economy. To show the possibilities of this technique, we provide empirical evidence on the path of structural change occurring in the Chicago economy by running simulations for projected input-output tables over the period 1975-2010. Journal: Economic Systems Research Pages: 115-131 Issue: 2 Volume: 18 Year: 2006 Keywords: Input-output models, sensitivity analysis, importance matrix, X-DOI: 10.1080/09535310600652919 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310600652919 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:18:y:2006:i:2:p:115-131 Template-Type: ReDIF-Article 1.0 Author-Name: Yasuhide Okuyama Author-X-Name-First: Yasuhide Author-X-Name-Last: Okuyama Author-Name: Michael Sonis Author-X-Name-First: Michael Author-X-Name-Last: Sonis Author-Name: Geoffrey Hewings Author-X-Name-First: Geoffrey Author-X-Name-Last: Hewings Title: Typology of structural change in a regional economy: a temporal inverse analysis Abstract: Earlier studies have investigated the hollowing-out phenomenon of the Chicago economy, in which the manufacturing sectors in Chicago have decreased their intermediate dependency within the region while the service sectors have increased their dependency. In this paper, a series of annual input-output tables for the Chicago metropolitan economy during the period of 1980-1997 was again employed for a further investigation of the structural change using an alternative tool, the temporal Leontief inverse analysis, that can assist in exploring trends and uncovering tendencies in individual sectors or groups of sectors within the context of an economy-wide system of accounts. The results are compared with the earlier studies for examining the nature and details of the hollowing-out phenomenon. Journal: Economic Systems Research Pages: 133-153 Issue: 2 Volume: 18 Year: 2006 Keywords: Input-output table, time-series analysis, structural change, hollowing-out process, X-DOI: 10.1080/09535310600652943 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310600652943 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:18:y:2006:i:2:p:133-153 Template-Type: ReDIF-Article 1.0 Author-Name: Glen Peters Author-X-Name-First: Glen Author-X-Name-Last: Peters Author-Name: Edgar Hertwich Author-X-Name-First: Edgar Author-X-Name-Last: Hertwich Title: Structural analysis of international trade: Environmental impacts of Norway Abstract: Final demand purchases initiate production processes that ultimately lead to environmental impacts. With the increase in international trade, many production processes occur outside of the country of final consumption. Whilst several studies have evaluated the pollution embodied in consumption and trade flows, few studies have investigated the structural linkages between domestic consumption and production in foreign regions. In this article we apply three complementary approaches to study the production network leading from the Norwegian economy to domestic and international environmental impacts: (1) the consumption perspective identifies final demand purchases that produce environmental impacts; (2) the production perspective identifies the production processes generating the pollution for a given demand; and (3) structural path analysis is used to provide the linkages between the global production networks linking consumption and production. We find that the three approaches provide different, but complementary information. For policy to focus on both sustainable consumption and production, all three approaches are required to fully identify environmentally important sectors in an economy. Journal: Economic Systems Research Pages: 155-181 Issue: 2 Volume: 18 Year: 2006 Keywords: Input-output analysis, embodied pollution, international trade, structural path analysis, sustainable consumption and production, X-DOI: 10.1080/09535310600653008 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310600653008 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:18:y:2006:i:2:p:155-181 Template-Type: ReDIF-Article 1.0 Author-Name: Volodymyr Ryaboshlyk Author-X-Name-First: Volodymyr Author-X-Name-Last: Ryaboshlyk Title: A dynamic input-output model with explicit new and old technologies: an application to the UK Abstract: Progress is traditionally measured by the improvement of an economy's average characteristics from year to year. Some deeper insight might be gained by splitting the averages into explicit parameters for the new and old technologies at work within the same year, and recognising that innovative growth is driven just by the 'potential difference' between these two types of technology. Economic modelling in this light generates volatile development paths greatly resembling actual statistical time series, giving a holistic description of cycles, structural change, structural unemployment, relative price shifts and capacity utilisation issues. The paper expands the author's elaborations of the explicit-new-technology approach from prototype economies to that of the UK. Forecasts very close to reality are achieved including the 1992 cyclical decline. All this gives empirical support to the premise that the input-output method, if modified, could become a competitive tool for analysing 'spontaneous' market forces, as well as for direct planning. The need for separate statistical accounting of parameters for new technologies at macro- and industry-levels is substantiated. Journal: Economic Systems Research Pages: 183-203 Issue: 2 Volume: 18 Year: 2006 Keywords: Progress, dynamic input-output models, business cycle, linear and nonlinear programming, X-DOI: 10.1080/09535310600653040 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310600653040 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:18:y:2006:i:2:p:183-203 Template-Type: ReDIF-Article 1.0 Author-Name: Lars Bohlin Author-X-Name-First: Lars Author-X-Name-Last: Bohlin Author-Name: Lars Widell Author-X-Name-First: Lars Author-X-Name-Last: Widell Title: Estimation of commodity-by-commodity input-output matrices Abstract: In this paper we derive a method for the estimation of symmetric input-output tables (SIOTs), which makes it possible to use the commodity technology assumption even when use- and make tables are rectangular. The method also solves the problem of negative coefficients. In the empirical part we derive annual SIOTs in order to evaluate the differences between SIOTs calculated with different methods and the change in technical coefficients over time. Our results, based on data for Sweden, show that the impact of using different technology assumptions is rather large. However, in a factor content of trade application the impact of different technology assumptions does not seem to be very important. Also the size of the changes in the technical coefficients over time is found to be quite large, indicating the importance of calculating SIOTs annually. Journal: Economic Systems Research Pages: 205-215 Issue: 2 Volume: 18 Year: 2006 Keywords: Input-output model, commodity technology, product technology, factor content of trade, X-DOI: 10.1080/09535310600653164 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310600653164 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:18:y:2006:i:2:p:205-215 Template-Type: ReDIF-Article 1.0 Author-Name: Edward Wolff Author-X-Name-First: Edward Author-X-Name-Last: Wolff Title: The growth of information workers in the US economy, 1950-2000: the role of technological change, computerization, and structural change Abstract: Using data from the decennial US Censuses of 1950, 1960, 1970, 1980, 1990, and 2000, I construct matrices of employment by 267 occupations and 64 industries and then aggregate the occupations into four categories: (i) knowledge producers; (ii) data processors; (iii) service workers; and (iv) goods-processing workers. I find that information workers (the sum of the first two categories) increased from 37% of the workforce in 1950 to 59% in 2000. Then, using an input-output decomposition analysis, I find that the growth in information workers was driven not by a shift in tastes toward information-intensive goods and services (as measured by the composition of final demand) but rather by a roughly equal combination of the substitution of information workers for goods and service workers within the structure of production of industries and the unbalanced growth effect (from differential rates of industry productivity growth). Finally, on the basis of regression analysis, I find that R&D expenditures and computer investment are positively associated with the growth in knowledge workers but negatively associated with the growth of data workers. Journal: Economic Systems Research Pages: 221-255 Issue: 3 Volume: 18 Year: 2006 Keywords: Information workers, input-output, R&D, computerization, productivity, X-DOI: 10.1080/09535310600844193 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310600844193 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:18:y:2006:i:3:p:221-255 Template-Type: ReDIF-Article 1.0 Author-Name: Chandrima Sikdar Author-X-Name-First: Chandrima Author-X-Name-Last: Sikdar Author-Name: Thijs Ten Raa Author-X-Name-First: Thijs Ten Author-X-Name-Last: Raa Author-Name: Pierre Mohnen Author-X-Name-First: Pierre Author-X-Name-Last: Mohnen Author-Name: Debesh Chakraborty Author-X-Name-First: Debesh Author-X-Name-Last: Chakraborty Title: Bilateral trade between India and Bangladesh: A general equilibrium approach Abstract: India and Bangladesh have pursued policies of trade liberalization since the early 1990s. However, owing to the differential speeds of opening up, Bangladesh's bilateral trade deficit with India widened substantially over the years. This aggravated the economic and the political tensions between the economies. It has been held that promotion of free trade between the two economies may enhance the trade and hence economic cooperation between them. Against this backdrop the present paper proposes a theoretical framework that provides a general equilibrium determination of the commodity pattern of trade and hence locates the comparative advantages of the economies. The empirical implementation of the model considers trade in 25 sectors comparable in the input-output tables of the economies. The study isolates the gains from free trade accruing to either economy. The paper also explores the pattern of bilateral trade when each economy produces goods by utilizing their own as well as the other country's technology. The gains from this trading arrangement are also isolated. Journal: Economic Systems Research Pages: 257-279 Issue: 3 Volume: 18 Year: 2006 Keywords: General equilibrium, comparative advantage, free trade, India-Bangladesh, X-DOI: 10.1080/09535310600844250 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310600844250 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:18:y:2006:i:3:p:257-279 Template-Type: ReDIF-Article 1.0 Author-Name: Anders Hammer Strømman Author-X-Name-First: Anders Hammer Author-X-Name-Last: Strømman Author-Name: Faye Duchin Author-X-Name-First: Faye Author-X-Name-Last: Duchin Title: A world trade model with bilateral trade based on comparative advantage Abstract: This paper describes an extension of Duchin's world trade model to include the explicit representation of transportation costs, permitting the endogenous determination of bilateral trade flows and region-specific prices. The original model is a linear program that, based on comparative advantage and the minimization of factor use, determines regional production and trade flows as well as world prices and scarcity rents for m regions, n good, and k factors. The new world trade model with bilateral trade achieves its objectives by introducing transportation services and geographically dependent transportation requirements for each traded good and each pair of potential trade partners. The formulation of this model and its major properties are presented, and results from a preliminary analysis with 11 regions, eight goods, four transportation sectors, and six factors of production are reported and compared with corresponding results from the world trade model. On the basis of this comparison, we conclude that transportation costs have little impact on a region's total imports or exports of a given commodity. Journal: Economic Systems Research Pages: 281-297 Issue: 3 Volume: 18 Year: 2006 Keywords: Input-output model, comparative advantage, world trade model, bilateral trade, X-DOI: 10.1080/09535310600844300 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310600844300 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:18:y:2006:i:3:p:281-297 Template-Type: ReDIF-Article 1.0 Author-Name: Barbara Diaz Author-X-Name-First: Barbara Author-X-Name-Last: Diaz Author-Name: Laura Moniche Author-X-Name-First: Laura Author-X-Name-Last: Moniche Author-Name: Antonio Morillas Author-X-Name-First: Antonio Author-X-Name-Last: Morillas Title: A Fuzzy clustering approach to the key sectors of the Spanish economy Abstract: The search for key sectors in an economy has been and still is one of the more recurrent themes in input-output analysis. When using clustering techniques, sectors can only belong to a group, having a particular performance. But, actually, the same sector could be important from different perspectives at the same time, to a different degree. So, a fuzzy clustering approach is needed. In this work we propose a multidimensional approach to classify the productive sectors of the Spanish input-output table for 1995, based on three groups of variables: those related to their productive integration, others measuring their specific weight in the economy and finally some showing their economic dynamic. We also incorporate into the analysis the technological level, which being a categorical variable presents special methodological problems. All these questions are tackled applying a robust and fuzzy clustering analysis, which gives as a result a classification of sectors illustrating the role that each one plays in the Spanish economy. Journal: Economic Systems Research Pages: 299-318 Issue: 3 Volume: 18 Year: 2006 Keywords: Key sectors, fuzzy clustering, input-output analysis, Spanish economy, X-DOI: 10.1080/09535310600844375 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310600844375 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:18:y:2006:i:3:p:299-318 Template-Type: ReDIF-Article 1.0 Author-Name: M. Alejandro Cardenete Author-X-Name-First: M. Alejandro Author-X-Name-Last: Cardenete Author-Name: Ferran Sancho Author-X-Name-First: Ferran Author-X-Name-Last: Sancho Title: Missing links in key sector analysis Abstract: In general terms, key sectors analysis aims at identifying and quantifying the economic impact of a sector in a given economy. For a sector, we mean here either an industry or a region, or even a cluster of them. Quite a few measures and methodologies of varied complexity have been proposed in the literature, from multiplier sums to extraction methods, but not without debate about their properties and information content. All of them, to our knowledge, focus exclusively on the interdependence effects that result from an input-output structure of the economy. By so doing the approach misses critical links beyond the interindustry ones. A productive sector's role is that of producing but also that of generating and distributing income among primary factors and households as a result of production. Thus, when measuring a sector's role, the income generating process should not be omitted if we want to elucidate the sector's true economic impact. A simple way to make the missing income links explicit is to use the SAM (Social Accounting Matrix) facility. Extending an extraction methodology to the SAM we compare lost output with and without the missing links. We observe that substantial differences in sectoral lost gross output arise but, even more important, we capture the implied shifting in the rank ordering of sectors. Journal: Economic Systems Research Pages: 319-325 Issue: 3 Volume: 18 Year: 2006 Keywords: Key sectors, extraction methods, economic linkages, SAM analysis, X-DOI: 10.1080/09535310600844409 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310600844409 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:18:y:2006:i:3:p:319-325 Template-Type: ReDIF-Article 1.0 Author-Name: Anushree Sinha Author-X-Name-First: Anushree Author-X-Name-Last: Sinha Title: Book review Abstract: Journal: Economic Systems Research Pages: 327-329 Issue: 3 Volume: 18 Year: 2006 X-DOI: 10.1080/09535310600844417 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310600844417 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:18:y:2006:i:3:p:327-329 Template-Type: ReDIF-Article 1.0 Author-Name: Olav Bjerkholt Author-X-Name-First: Olav Author-X-Name-Last: Bjerkholt Author-Name: Heinz Kurz Author-X-Name-First: Heinz Author-X-Name-Last: Kurz Title: Introduction: the History of Input-Output Analysis, Leontief's Path and Alternative Tracks Abstract: Journal: Economic Systems Research Pages: 331-333 Issue: 4 Volume: 18 Year: 2006 X-DOI: 10.1080/09535310601020850 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310601020850 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:18:y:2006:i:4:p:331-333 Template-Type: ReDIF-Article 1.0 Author-Name: Svetlana Kaliadina Author-X-Name-First: Svetlana Author-X-Name-Last: Kaliadina Author-Name: Natal'ia Iu. Pavlova Author-X-Name-First: Natal'ia Iu. Author-X-Name-Last: Pavlova Author-Name: Claus Wittich Author-X-Name-First: Claus Author-X-Name-Last: Wittich Title: The Family of W. W. Leontief in Russia Abstract: Journal: Economic Systems Research Pages: 335-345 Issue: 4 Volume: 18 Year: 2006 X-DOI: 10.1080/09535310601020876 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310601020876 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:18:y:2006:i:4:p:335-345 Template-Type: ReDIF-Article 1.0 Author-Name: Svetlana Kaliadina Author-X-Name-First: Svetlana Author-X-Name-Last: Kaliadina Author-Name: Tatiana Babaskina Author-X-Name-First: Tatiana Author-X-Name-Last: Babaskina Author-Name: Maria Shikalova Author-X-Name-First: Maria Author-X-Name-Last: Shikalova Author-Name: Claus Wittich Author-X-Name-First: Claus Author-X-Name-Last: Wittich Title: W.W. Leontief and the Repressions of the 1920s: an Interview Abstract: Journal: Economic Systems Research Pages: 347-355 Issue: 4 Volume: 18 Year: 2006 X-DOI: 10.1080/09535310601020884 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310601020884 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:18:y:2006:i:4:p:347-355 Template-Type: ReDIF-Article 1.0 Author-Name: Gilbert Abraham-Frois Author-X-Name-First: Gilbert Author-X-Name-Last: Abraham-Frois Author-Name: Emeric Lendjel Author-X-Name-First: Emeric Author-X-Name-Last: Lendjel Title: Father Potron's Early Contributions to Input-Output Analysis Abstract: This article introduces an unknown predecessor of Leontief who, at the very beginning of the last century, invented the idea of an input-output table as the basis for finding an economic equilibrium. He gave examples of 'technical coefficients', formulated the idea of a computing office, and was the first to apply Perron-Frobenius's theorems to such Leontief-type models in order to demonstrate the possibility of the existence of an economic equilibrium. As a Jesuit, Potron was largely influenced by the 'social doctrine of justice'. Consequently, he was mainly concerned with social justice and economic efficiency, problems of 'fairness', and the setting of 'fair prices' and 'fair wages'. As a graduate of the Ecole Polytechnique with a PhD in mathematics, he applied mathematics to economic analysis, without any training or knowledge of economic methods. Journal: Economic Systems Research Pages: 357-372 Issue: 4 Volume: 18 Year: 2006 Keywords: Potron, input-output analysis, Perron-Frobenius theorem, Thomism, X-DOI: 10.1080/09535310601020918 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310601020918 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:18:y:2006:i:4:p:357-372 Template-Type: ReDIF-Article 1.0 Author-Name: Heinz Kurz Author-X-Name-First: Heinz Author-X-Name-Last: Kurz Author-Name: Neri Salvadori Author-X-Name-First: Neri Author-X-Name-Last: Salvadori Title: Input-Output Analysis from a Wider Perspective: a Comparison of the Early Works of Leontief and Sraffa Abstract: This paper compares Leontief's 1928 PhD thesis and Sraffa's work in Cambridge in 1927-1928 as reconstructed from Sraffa's unpublished papers. Both authors showed that relative prices and the interest rate can be determined exclusively in terms of the observable amounts of commodities produced and used up during a year - without any reference to demand and supply. While Sraffa continued to elaborate a comprehensive objectivist, surplus-based alternative to the marginalist theory, Leontief's interest shifted towards applying the new tool of input-output to practical problems. However, his assumption of given value added coefficients in his price equations cannot be sustained. Journal: Economic Systems Research Pages: 373-390 Issue: 4 Volume: 18 Year: 2006 Keywords: Circular flow, classical theory, input-output analysis, Wassily Leontief, Piero Sraffa, X-DOI: 10.1080/09535310601020959 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310601020959 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:18:y:2006:i:4:p:373-390 Template-Type: ReDIF-Article 1.0 Author-Name: Olav Bjerkholt Author-X-Name-First: Olav Author-X-Name-Last: Bjerkholt Author-Name: Mark Knell Author-X-Name-First: Mark Author-X-Name-Last: Knell Title: Ragnar Frisch and the Origin of Input-Output Analysis Abstract: Ragnar Frisch claimed on various occasions that he had invented the principles of input-output analysis. Frisch and Leontief worked simultaneously on their respective contributions but within different contexts. Frisch's contribution was an attempt to cope with market collapse of the depression and thus arose from a different motivation than Leontief's equilibrium analysis. Although prominently published in Econometrica in 1934, Frisch's 'circulation planning' has not been much discussed in the literature. The paper sets out the analytic core of Frisch's contribution and its formal similarity with Wassily Leontief's input-output analysis, which was the basis for Frisch's claim. It examines the inventiveness and analytical power of Frisch's approach and relates it to other works by him. Journal: Economic Systems Research Pages: 391-410 Issue: 4 Volume: 18 Year: 2006 Keywords: History of economic thought, input-output models, circulation planning, X-DOI: 10.1080/09535310601020983 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310601020983 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:18:y:2006:i:4:p:391-410 Template-Type: ReDIF-Article 1.0 Author-Name: Christian Lager Author-X-Name-First: Christian Author-X-Name-Last: Lager Title: The Treatment of Fixed Capital in the Long Period Abstract: This paper is concerned with the treatment of fixed capital in multisectoral models. Five approaches and concepts developed and used by Sraffa and von Neumann, by Hicks, by Georgescu-Roegen, by Walras and by Leontief are compared. These five approaches fall into two broad categories: models with finite life and endogenous determination of depreciation and models with infinite life and exogenous depreciation. Total vertical disintegration of production results in treating used fixed capital items as joint products. This approach suggested by Torrens and elaborated by von Neumann and Sraffa is the most general approach. All other models are special cases. Journal: Economic Systems Research Pages: 411-426 Issue: 4 Volume: 18 Year: 2006 Keywords: Fixed capital, multi-sectoral models, dynamic Leontief model, X-DOI: 10.1080/09535310601021007 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310601021007 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:18:y:2006:i:4:p:411-426 Template-Type: ReDIF-Article 1.0 Author-Name: Grant J. Allan Author-X-Name-First: Grant J. Author-X-Name-Last: Allan Author-Name: Nicholas D. Hanley Author-X-Name-First: Nicholas D. Author-X-Name-Last: Hanley Author-Name: Peter G. Mcgregor Author-X-Name-First: Peter G. Author-X-Name-Last: Mcgregor Author-Name: J. Kim Swales Author-X-Name-First: J. Kim Author-X-Name-Last: Swales Author-Name: Karen R. Turner Author-X-Name-First: Karen R. Author-X-Name-Last: Turner Title: Augmenting the Input-Output Framework for 'Common Pool' Resources: Operationalising the Full Leontief Environmental Model Abstract: In its initial formulation, the full Leontief (1970) environmental model augments the conventional Input-Output (IO) table by introducing pollution generation and separately identified pollution elimination sectors. Essentially it extends IO analysis to incorporate the use of a 'common pool' resource. Subsequent literature has either been analytical in nature or has concentrated on pollution generation but not cleaning activity. In this paper we generate an empirical full Leontief environmental IO system, based on augmenting the existing Scottish IO tables through endogenising waste generation and waste disposal activity. Due to weaknesses in data, our empirical results need to be treated with some caution. However, the construction of the extended IO system and the interpretation of the output and price multiplier results raise a number of interesting practical and conceptual issues. The analysis undertaken here can be extended to other 'common pool' resources such as the use of highways and irrigation systems. Journal: Economic Systems Research Pages: 1-22 Issue: 1 Volume: 19 Year: 2007 Keywords: Input-output, environment, pollution, waste disposal, common pool resources, X-DOI: 10.1080/09535310601164724 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310601164724 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:19:y:2007:i:1:p:1-22 Template-Type: ReDIF-Article 1.0 Author-Name: Axel Schaffer Author-X-Name-First: Axel Author-X-Name-Last: Schaffer Title: Women's and Men's Contributions to Satisfying Consumers' Needs: A Combined Time Use and Input-Output Analysis Abstract: The traditional input-output table (IOT) identifies the intermediate flows between industries, the branches' contributions to satisfy final demand and the primary inputs needed for production. While industries play a key role in the field of input-output analysis, the structure of employees remains more or less unconsidered. The present study aims to combine particular information regarding employees' working time with traditional instruments of input-output analysis. In so doing, employees (and the corresponding paid working hours) are separated by industries, educational achievements and gender. This, in turn, allows for the identification of women's and men's contributions to satisfying different categories of final demand. In total, men's paid working hours significantly exceed women's labour input. However, societies rely likewise on paid and unpaid work. Therefore, the study finally accounts for the field of unpaid work, which - in Germany - is still dominated by women. Journal: Economic Systems Research Pages: 23-36 Issue: 1 Volume: 19 Year: 2007 Keywords: Input-output analysis, Gross Domestic Product, time use, gender, X-DOI: 10.1080/09535310601164732 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310601164732 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:19:y:2007:i:1:p:23-36 Template-Type: ReDIF-Article 1.0 Author-Name: Bernd Meyer Author-X-Name-First: Bernd Author-X-Name-Last: Meyer Author-Name: Christian Lutz Author-X-Name-First: Christian Author-X-Name-Last: Lutz Author-Name: Peter Schnur Author-X-Name-First: Peter Author-X-Name-Last: Schnur Author-Name: Gerd Zika Author-X-Name-First: Gerd Author-X-Name-Last: Zika Title: National Economic Policy Simulations with Global Interdependencies: A Sensitivity Analysis for Germany Abstract: Policy simulations for national economies with econometric models, in general, are done using a standalone national model with exogenous export values and import prices. In a globalised world, such an exercise is critical, since the policy in question may change the export prices and the import volumes of the particular country and induce via international trade a change of the economic activities of the global economy and a feedback to the export values and import prices of the particular country. This paper presents a sensitivity analysis for Germany comparing the impacts of a shock on investment in a standalone simulation using the multisector model INFORGE with the results, which occur, if the same model is linked to the global multicountry/multisector model GINFORS endogenising Germany-super-`s export values and import prices. The results are striking: the effect on real GDP is 50% higher in the global simulation than in the standalone case. Because of the specialisation in trade the differences on the sector level are even stronger. Journal: Economic Systems Research Pages: 37-55 Issue: 1 Volume: 19 Year: 2007 Keywords: Policy simulation, econometric models, global modelling, X-DOI: 10.1080/09535310601164765 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310601164765 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:19:y:2007:i:1:p:37-55 Template-Type: ReDIF-Article 1.0 Author-Name: Thijs Ten Raa Author-X-Name-First: Thijs Ten Author-X-Name-Last: Raa Author-Name: Amarendra Sahoo Author-X-Name-First: Amarendra Author-X-Name-Last: Sahoo Title: Competitive Pressure on the Indian Households: A General Equilibrium Approach Abstract: How would competitive pressure impact upon the income distribution and the poverty of household groups? We analyse the gains in efficiency and productivity due to competitive pressure, and its distributional effects using a general equilibrium input-output framework. Efficient utilization of the available resources, technical progress and free trade constitute our sources of growth. Welfare would increase under competition, but the income distribution would become more skewed. Rural household groups would stand to lose relative to the urban ones. Urban poverty would be reduced significantly more than rural. In fact, the agricultural worker would even suffer from an increase in poverty. The study shows that competitive pressure has a positive effect on efficiency, productivity and poverty, but an adverse effect on the income distribution in the Indian economy. Journal: Economic Systems Research Pages: 57-71 Issue: 1 Volume: 19 Year: 2007 Keywords: Efficiency, productivity, applied general equilibrium, income distribution, poverty, X-DOI: 10.1080/09535310601164781 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310601164781 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:19:y:2007:i:1:p:57-71 Template-Type: ReDIF-Article 1.0 Author-Name: D'artis Kancs Author-X-Name-First: D'artis Author-X-Name-Last: Kancs Title: Does Economic Integration Affect the Structure of Industries? Empirical Evidence from the CEE Abstract: In this paper we study the impacts of regional integration on the structure of industries in the Central and Eastern European (CEE) transition economies. Our empirical analysis is based on the economic geography framework, which is able to predict not only the industry location after integration, but also to capture other general equilibrium effects, such as transition to market economy, which turn out to be highly significant in the CEE. Our empirical results complement previous findings that industry location is strongly related to economic integration. We also find that CEE integration of the Council on Mutual Economic Assistance (CMEA) has distorted the industry location pattern predicted by the underlying economic geography theory. These distortions are higher in those regions that were more integrated in the CMEA. Our ex-ante simulation results suggest a convergence in regional specialisation after CEE integration with the EU. Journal: Economic Systems Research Pages: 73-97 Issue: 1 Volume: 19 Year: 2007 Keywords: Economic development, regional integration, input-output linkages, X-DOI: 10.1080/09535310601164807 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310601164807 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:19:y:2007:i:1:p:73-97 Template-Type: ReDIF-Article 1.0 Author-Name: Thijs Ten Raa Author-X-Name-First: Thijs Ten Author-X-Name-Last: Raa Author-Name: Jose Manuel Rueda-Cantuche Author-X-Name-First: Jose Manuel Author-X-Name-Last: Rueda-Cantuche Title: A Generalized Expression for the Commodity and the Industry Technology Models in Input-Output Analysis Abstract: Technical coefficients are usually constructed from commodity or industry technology models. Although these models are considered as competing, there is an encompassing framework that admits a clear comparison. Journal: Economic Systems Research Pages: 99-104 Issue: 1 Volume: 19 Year: 2007 Keywords: Technical coefficients, commodity technology, industry technology, input-output analysis, X-DOI: 10.1080/09535310601164849 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310601164849 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:19:y:2007:i:1:p:99-104 Template-Type: ReDIF-Article 1.0 Author-Name: Yasuhide Okuyama Author-X-Name-First: Yasuhide Author-X-Name-Last: Okuyama Title: Economic Modeling for Disaster Impact Analysis: Past, Present, and Future Abstract: Analyzing economic impacts of disasters has attracted interest from a wide audience in recent years, not only because of the frequent occurrence of large natural disasters worldwide but also because of the spread of terrorism to a global scale. This paper reviews past modeling studies for economic impact analysis of disasters, focusing especially on the input-output model and related modeling frameworks, such as the social accounting matrix and the computable general equilibrium model. The paper also discusses the issues of disaster modeling raised by the literature, and proposes some future directions. Journal: Economic Systems Research Pages: 115-124 Issue: 2 Volume: 19 Year: 2007 Keywords: Impact analysis, disasters, input-output, extensions, X-DOI: 10.1080/09535310701328435 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310701328435 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:19:y:2007:i:2:p:115-124 Template-Type: ReDIF-Article 1.0 Author-Name: Kieran P. Donaghy Author-X-Name-First: Kieran P. Author-X-Name-Last: Donaghy Author-Name: Nazmiye Balta-Ozkan Author-X-Name-First: Nazmiye Author-X-Name-Last: Balta-Ozkan Author-Name: Geoffrey J.D. Hewings Author-X-Name-First: Geoffrey J.D. Author-X-Name-Last: Hewings Title: Modeling Unexpected Events in Temporally Disaggregated Econometric Input-Output Models of Regional Economies Abstract: Discrete-time econometric input-output models of regional economies, such as Regional Econometric Input-Output Models (REIMs), have been used to examine the impacts over time of unexpected (and usually extreme) events. Analyses carried out with such models have been limited, in part, because of their temporal orientation and their somewhat a-theoretical specification. In this paper we review how REIMs can accommodate disequilibrium adjustments in economies to unexpected events and then discuss analytical contributions made by sequential interindustry models (SIMs) before presenting the case for using continuous-time formulations of REIMs to capture both events with impacts over periods that are shorter than the observation/solution interval of the model and nonlinear continuous event recovery processes. Journal: Economic Systems Research Pages: 125-145 Issue: 2 Volume: 19 Year: 2007 Keywords: Econometric input-output model, continuous-time modeling, unexpected events, impact analysis, X-DOI: 10.1080/09535310701328484 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310701328484 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:19:y:2007:i:2:p:125-145 Template-Type: ReDIF-Article 1.0 Author-Name: Satoshi Tsuchiya Author-X-Name-First: Satoshi Author-X-Name-Last: Tsuchiya Author-Name: Hirokazu Tatano Author-X-Name-First: Hirokazu Author-X-Name-Last: Tatano Author-Name: Norio Okada Author-X-Name-First: Norio Author-X-Name-Last: Okada Title: Economic Loss Assessment due to Railroad and Highway Disruptions Abstract: This paper aims to present an illustrative case study on the economic impacts of transport infrastructure disruptions caused by the hypothetical Tokai-Tonankai earthquakes in Japan. We formulate a spatial computable general equilibrium (SCGE) model, which integrates a transportation model that can estimate two types of interregional flows of freight movement and passenger trips. The case study shows the impacts of transportation disruptions and the importance of network redundancy with transport-related economic losses corresponding to several scenarios from disasters and network levels of development. Journal: Economic Systems Research Pages: 147-162 Issue: 2 Volume: 19 Year: 2007 Keywords: Spatial computable general equilibrium model, catastrophic earthquakes, transport-related losses, X-DOI: 10.1080/09535310701328567 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310701328567 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:19:y:2007:i:2:p:147-162 Template-Type: ReDIF-Article 1.0 Author-Name: Norihiko Yamano Author-X-Name-First: Norihiko Author-X-Name-Last: Yamano Author-Name: Yoshio Kajitani Author-X-Name-First: Yoshio Author-X-Name-Last: Kajitani Author-Name: Yoshiharu Shumuta Author-X-Name-First: Yoshiharu Author-X-Name-Last: Shumuta Title: Modeling the Regional Economic Loss of Natural Disasters: The Search for Economic Hotspots Abstract: This paper examines the economic impacts of natural disasters using the originally estimated finer geographical scale production datasets and the redefined interregional input-output table. For more effective estimates of direct losses of the disasters, the precise geographical information of industrial distribution is required, because most economic data are published according to political boundaries that may be too aggregated to be the practical information for disaster preventions and retrofit policies. The direct losses are captured by the output data at the district level (500-meter square) by sector and the population density. The map of economic hotspots is obtained after estimating the economic importance of each district. The numerical examples clearly show that the advantages of finer geographical scale datasets and the total economic losses are not proportional to the distributions of population and industrial activities. In other words, the disaster prevention and retrofit policies have to consider the higher-order effects to reduce the total economic loss. Journal: Economic Systems Research Pages: 163-181 Issue: 2 Volume: 19 Year: 2007 Keywords: Natural disaster, district level data, multiregional input-output model, economic hotspots, X-DOI: 10.1080/09535310701330191 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310701330191 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:19:y:2007:i:2:p:163-181 Template-Type: ReDIF-Article 1.0 Author-Name: Christopher W. Anderson Author-X-Name-First: Christopher W. Author-X-Name-Last: Anderson Author-Name: Joost R. Santos Author-X-Name-First: Joost R. Author-X-Name-Last: Santos Author-Name: Yacov Y. Haimes Author-X-Name-First: Yacov Y. Author-X-Name-Last: Haimes Title: A Risk-based Input-Output Methodology for Measuring the Effects of the August 2003 Northeast Blackout Abstract: The 2003 Northeast Blackout revealed vulnerabilities within the US electric power-grid system. With the economy so dependent on electric power for most aspects of life, a power-grid failure can have far-reaching higher-order effects and can impair the operability of other critical infrastructures. An inoperability of the power sector can result from different types of disasters (e.g., accidents, natural catastrophe, or willful attacks). This paper demonstrates the Inoperability Input-Output Model (IIM) to measure the financial and inoperability effects of the Northeast Blackout. The case study uses information from sources such as the US input-output tables and sector-specific reports to quantify losses for specific inoperability levels. The IIM estimated losses of the same magnitude as other published reports; however, with a detailed accounting of all affected economic sectors. Finally, a risk management framework is proposed to extend the IIM's capability for evaluating investment options in terms of their implementation costs and loss-reduction potentials. Journal: Economic Systems Research Pages: 183-204 Issue: 2 Volume: 19 Year: 2007 Keywords: 2003 Northeast Blackout, inoperability input-output model, risk management, multiobjective analysis, X-DOI: 10.1080/09535310701330233 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310701330233 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:19:y:2007:i:2:p:183-204 Template-Type: ReDIF-Article 1.0 Author-Name: Albert E. Steenge Author-X-Name-First: Albert E. Author-X-Name-Last: Steenge Author-Name: Marija Bockarjova Author-X-Name-First: Marija Author-X-Name-Last: Bockarjova Title: Thinking about Imbalances in Post-catastrophe Economies: An Input-Output based Proposition Abstract: In this paper we focus on the consequences of a major catastrophe for a modern economy, where 'major' means that a significant part of the economy's productive capacity is lost. In the aftermath of the catastrophe, authorities have to address a great number of issues. We show, using basic principles, that input-output methodology offers a flexible set of tools to address three fundamental issues: (1) obtaining a systematic insight in the imbalances that exist in the non-affected area after the catastrophe, (2) determining the nature of these imbalances and the way they affect options in the recovery process, and (3) introducing the elements of a cost-benefit analysis in the context of prevention and precautionary policies. Our approach strongly supports the need for extensive contingency planning in the presence of major natural hazards. A numerical example accompanies the various steps of the exercise. Journal: Economic Systems Research Pages: 205-223 Issue: 2 Volume: 19 Year: 2007 Keywords: Disaster, input-output analysis, economic network, cost-benefit analysis, X-DOI: 10.1080/09535310701330308 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310701330308 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:19:y:2007:i:2:p:205-223 Template-Type: ReDIF-Article 1.0 Author-Name: Marcel Timmer Author-X-Name-First: Marcel Author-X-Name-Last: Timmer Author-Name: Pirkko Aulin-Ahmavaara Author-X-Name-First: Pirkko Author-X-Name-Last: Aulin-Ahmavaara Title: New Developments in Productivity Analysis within an Input-Output Framework: an Introduction Abstract: Journal: Economic Systems Research Pages: 225-227 Issue: 3 Volume: 19 Year: 2007 X-DOI: 10.1080/09535310701571828 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310701571828 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:19:y:2007:i:3:p:225-227 Template-Type: ReDIF-Article 1.0 Author-Name: Dale Jorgenson Author-X-Name-First: Dale Author-X-Name-Last: Jorgenson Author-Name: Mun Ho Author-X-Name-First: Mun Author-X-Name-Last: Ho Author-Name: Jon Samuels Author-X-Name-First: Jon Author-X-Name-Last: Samuels Author-Name: Kevin Stiroh Author-X-Name-First: Kevin Author-X-Name-Last: Stiroh Title: Industry Origins of the American Productivity Resurgence Abstract: This paper analyzes the industry origins of the American growth resurgence by examining output, input, and productivity growth of 85 component industries for the period 1960 to 2005. We use this detailed industry data to examine trends in particular industry groups such as those that produce information technology (IT) or use IT most intensively and to perform a 'bottom-up' comparison of alternative aggregation methodologies. The data show that while labor productivity growth was strong throughout the full period after 1995, there were important differences between 1995-2000 and 2000-2005. The period 1995-2000, for example, was marked by strong growth in labor input so aggregate output was robust, while labor input and output growth both declined substantially after 2000. IT remained an important source of both capital deepening and total factor productivity growth after 2000, but the contributions were not as large as during the technology boom of the late 1990s. We also show that the production possibility frontier, which recognizes differences in output prices across industries, remains the most appropriate methodology for aggregating industry data. Journal: Economic Systems Research Pages: 229-252 Issue: 3 Volume: 19 Year: 2007 Keywords: Economic growth, USA, industry aggregation, information technology, X-DOI: 10.1080/09535310701571885 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310701571885 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:19:y:2007:i:3:p:229-252 Template-Type: ReDIF-Article 1.0 Author-Name: Pirkko Aulin-Ahmavaara Author-X-Name-First: Pirkko Author-X-Name-Last: Aulin-Ahmavaara Author-Name: Perttu Pakarinen Author-X-Name-First: Perttu Author-X-Name-Last: Pakarinen Title: Integrated Industry and Economy-wide TFP-Measures with Different Prices in Different Uses Abstract: We derive a consistent system of industry and economy-wide measures of TFP growth based on weaker assumptions than used in the literature so far. We allow different industries to pay different prices for the same product. These price differences are not assumed to cancel out at the economy-wide level. Our economy-wide concepts of output are the average growth rates of deliveries to final demand and of the industries' value added. In the case of the former, both net taxes on products and imported intermediates contribute, in addition to labour and capital, to the output growth and even the reallocation of intermediates contributes to the economy-wide TFP growth. In the case of the latter only capital and labour contribute to the output growth and the contribution of the reallocation of intermediates is largely offset by that of value added. We demonstrate the consequences of the non-additivity of the Tornqvist index formula. Journal: Economic Systems Research Pages: 253-276 Issue: 3 Volume: 19 Year: 2007 Keywords: Growth accounting, productivity, aggregation, X-DOI: 10.1080/09535310701571927 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310701571927 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:19:y:2007:i:3:p:253-276 Template-Type: ReDIF-Article 1.0 Author-Name: Lourens Broersma Author-X-Name-First: Lourens Author-X-Name-Last: Broersma Author-Name: Ton Van Moergastel Author-X-Name-First: Ton Author-X-Name-Last: Van Moergastel Title: A Shortcut Method for Generating Time Series of Input Data for Productivity Analysis Abstract: This paper outlines a simple method for generating long time-series of intermediate inputs by industries and products from supply and use tables (SUTs) that can serve as building blocks in productivity growth analysis. This backward extrapolation method is tested on a set of Dutch SUTs for the period 1987-2001. We find that our methodology delivers estimates of values, volumes and real growth rates of intermediate inputs that compare well with the ones from officially published tables. It generates a stable long series of tables based on a limited set of information. This method will hence be a useful tool for generating time-series of intermediate inputs, which are a crucial element in productivity analysis. Journal: Economic Systems Research Pages: 277-293 Issue: 3 Volume: 19 Year: 2007 Keywords: Supply and use tables, estimation, intermediate inputs, growth accounting, X-DOI: 10.1080/09535310701571976 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310701571976 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:19:y:2007:i:3:p:277-293 Template-Type: ReDIF-Article 1.0 Author-Name: Kurt Kratena Author-X-Name-First: Kurt Author-X-Name-Last: Kratena Title: Technical Change, Investment and Energy Intensity Abstract: This paper analyses the role of different components of technical change on energy intensity by applying a Translog variable cost function setting with (short- run) fixed capital to the new EU KLEMS dataset for five selected EU countries (Denmark, Italy, Netherlands, UK and Spain). The framework applied represents an accounting of technical change components, comprising autonomous (disembodied) as well as technical change embodied in capital goods. It is extended in order to incorporate embodied technical change induced by energy prices by adding an equation for (physical) capital stock accumulation. The model can be used for explaining and tracing back the long-run impact of the interaction of prices, capital accumulation and technical change on energy intensity. The empirical results distinguish between industries with embodied technical change and industries with capital-energy complementarity. Journal: Economic Systems Research Pages: 295-314 Issue: 3 Volume: 19 Year: 2007 Keywords: Embodied technical change, industrial energy intensity, Translog cost function, X-DOI: 10.1080/09535310701572008 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310701572008 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:19:y:2007:i:3:p:295-314 Template-Type: ReDIF-Article 1.0 Author-Name: Dale Jorgenson Author-X-Name-First: Dale Author-X-Name-Last: Jorgenson Author-Name: Koji Nomura Author-X-Name-First: Koji Author-X-Name-Last: Nomura Title: The Industry Origins of the US-Japan Productivity Gap Abstract: This paper presents a comparison of total factor productivity (TFP) levels between the US and Japan for the period 1960-2004 and allocates the gap to individual industries. We carefully distinguish the various concepts of purchasing power parity (PPP) and measure them within the framework of a US-Japan bilateral input-output table. We also measure industry-level PPPs for capital, labor, energy, and materials inputs and output for 42 industries common to the US and Japan, based on detailed estimates for 164 commodities, 33 assets, including land and inventories, and 1596 labor categories. The US-Japan productivity gap shrank during three decades of rapid Japanese economic growth, 1960-1990. The Japanese manufacturing sector achieved parity with its US counterpart by the end of the period. With the collapse of the Japanese economic bubble at the end of the 1980s, the US-Japan productivity gap reversed course and expanded to 79.5% by 2004. This can be attributed to rapid productivity growth in the IT-producing industries in the US during the late 1990s and the sharp acceleration of productivity growth in the IT-using industries in the US during 2000-2004. Wholesale and Retail Trade emerged as the largest contributor to this gap, accounting for 25.1% of the lower TFP of the Japanese economy. Journal: Economic Systems Research Pages: 315-341 Issue: 3 Volume: 19 Year: 2007 Keywords: Purchasing power parity, investment, productivity, growth, X-DOI: 10.1080/09535310701572024 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310701572024 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:19:y:2007:i:3:p:315-341 Template-Type: ReDIF-Article 1.0 Author-Name: Robert Inklaar Author-X-Name-First: Robert Author-X-Name-Last: Inklaar Author-Name: Marcel Timmer Author-X-Name-First: Marcel Author-X-Name-Last: Timmer Title: International Comparisons of Industry Output, Inputs and Productivity Levels: Methodology and New Results Abstract: In this paper we provide new evidence on relative levels of output, inputs and productivity at a detailed industry level for a set of seven countries. These comparisons are based on sectoral output measures that exclude intra-industry flows. We argue that this improves international comparability and the insightfulness of the analysis. Productivity levels are relatively similar in the European and Anglo-Saxon countries we analyze, but we do find large differences in production structures. US industries use more skilled labour, more ICT capital, more services and more energy, but less materials, per unit of output than the other countries. This pattern is found for both goods-producing and services-producing industries. Journal: Economic Systems Research Pages: 343-363 Issue: 3 Volume: 19 Year: 2007 Keywords: International comparisons, productivity, input-output tables, structure of production, X-DOI: 10.1080/09535310701572040 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310701572040 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:19:y:2007:i:3:p:343-363 Template-Type: ReDIF-Article 1.0 Author-Name: Utz-Peter Reich Author-X-Name-First: Utz-Peter Author-X-Name-Last: Reich Title: Inequality in Exchange: The Use of a World Trade Flow Table for Analyzing the International Economy Abstract: Whether or not the terms of trade between two countries may be unequal is a controversial question in the theory of international economics. In practice, the issue is resolved through statistical observation of the terms of trade. This measurement of the terms of trade follows a long tradition and produces impressive detail. It is, however, restricted in scope, because the first derivative, the change of the terms over time is observed only. Absolute levels depend on which year is chosen as the base year, a choice that is rather arbitrary and carries no theoretical meaning. Equality in the levels of terms of trade remains thus undefined. More precisely, it is always assumed to exist implicitly for whichever base year is being nominated. The paper proposes an answer to this ambiguity based on the relatively new statistical tool of international purchasing power compilation. The terms of trade are crucially dependent on the rate of foreign exchange (for which exports are traded against imports), which is predominantly governed by financial rather than commodity markets. Hence, the paper proposes to separate the two factors of influence and to call terms of trade 'equal' if the effective real exchange rate (as derived from the nominal exchange rate by means of purchasing power parities) equals one. On that basis a world trade flow table is constructed, putting the compiled equalities and inequalities in trade into a coherent, global perspective. Journal: Economic Systems Research Pages: 375-395 Issue: 4 Volume: 19 Year: 2007 Keywords: International trade, inequality, purchasing power parity, real prices, X-DOI: 10.1080/09535310701698449 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310701698449 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:19:y:2007:i:4:p:375-395 Template-Type: ReDIF-Article 1.0 Author-Name: Dipti Prakas Pal Author-X-Name-First: Dipti Prakas Author-X-Name-Last: Pal Author-Name: Erik Dietzenbacher Author-X-Name-First: Erik Author-X-Name-Last: Dietzenbacher Author-Name: Dipika Basu Author-X-Name-First: Dipika Author-X-Name-Last: Basu Title: Economic Integration: Systemic Measures in an Input-Output Framework Abstract: Countries are linked through trade and for their mutual benefits they often group together. Consequently, trade blocs are formed in some form or another, examples of which are the EU, EFTA, ASEAN, NAFTA, and SAARC. Depending upon the form and the nature of the grouping, trade relations among countries obviously vary across the trade blocs. The pattern and the volume of trade of the participating countries are different and thus cause different impacts on the growth and development of the countries concerned. Also, the nature of integration changes over time. To examine the strength of integration within trade blocs, systemic measures of integration hitherto not available are formulated in an input-output framework. The measures are used, as a case study, to assess the inter-temporal variations in the degree of integration of SAARC. Journal: Economic Systems Research Pages: 397-408 Issue: 4 Volume: 19 Year: 2007 Keywords: Economic integration, trade coefficient matrix, input-output framework, X-DOI: 10.1080/09535310701698464 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310701698464 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:19:y:2007:i:4:p:397-408 Template-Type: ReDIF-Article 1.0 Author-Name: Kim Abildgren Author-X-Name-First: Kim Author-X-Name-Last: Abildgren Title: Input-Output Based Measures of Underlying Domestic Inflation: Empirical Evidence from Denmark 1903-2002 Abstract: The paper presents input-output based time-series data for the underlying domestic inflation in Denmark 1903-2002 and analyses the inflationary development during the last century. More conceptual issues in relation to the interpretation and use of input-output based domestic inflation measures are also discussed. The purpose of such inflation measures is to track the development in the domestic market-determined inflation, which is closely related to the price of gross value added in the domestic market-based private business sector. A price index for value added often displays a different short-term development than the headline CPI. Such differences can be useful in an assessment of the current inflationary environment and in relation to an interpretation of the historical inflation development. Journal: Economic Systems Research Pages: 409-423 Issue: 4 Volume: 19 Year: 2007 Keywords: Underlying inflation, core inflation, history of inflation, input-output price models, X-DOI: 10.1080/09535310701698472 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310701698472 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:19:y:2007:i:4:p:409-423 Template-Type: ReDIF-Article 1.0 Author-Name: Lefteris Tsoulfidis Author-X-Name-First: Lefteris Author-X-Name-Last: Tsoulfidis Author-Name: Theodore Mariolis Author-X-Name-First: Theodore Author-X-Name-Last: Mariolis Title: Labour Values, Prices of Production and the Effects of Income Distribution: Evidence from the Greek Economy Abstract: This paper explores the relationship between labour values, prices of production and changes in income distribution in an actual economy. For this purpose we use a linear model of production with circulating capital and homogeneous labour, assuming that wages are paid ex ante. On the basis of this model and data from input-output tables of the Greek economy for the period 1988-1997 we estimate the labour values and prices of production, which are normalized with the use of the Sraffian standard commodity and the actual output vector. Furthermore, we extend Steedman's polynomial approximation of prices of production to include the case where wages are paid ex ante and the accuracy of this approximation is tested with actual input-output data. Finally, we find that prices of production change as a result of hypothetical changes in income distribution more often than not in a monotonic way and in a few cases display curvatures that reverse the order between prices of production and values. Journal: Economic Systems Research Pages: 425-437 Issue: 4 Volume: 19 Year: 2007 Keywords: Distribution, labour values, prices of production, standard commodity, X-DOI: 10.1080/09535310701698548 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310701698548 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:19:y:2007:i:4:p:425-437 Template-Type: ReDIF-Article 1.0 Author-Name: Christian Bidard Author-X-Name-First: Christian Author-X-Name-Last: Bidard Author-Name: Guido Erreygers Author-X-Name-First: Guido Author-X-Name-Last: Erreygers Title: Potron and the Perron-Frobenius Theorem Abstract: Maurice Potron is an important precursor of the study of linear models of production and, in particular, of input-output analysis. We show that, contrary to Abraham-Frois and Lendjel's interpretation which we consider as unfaithful to Potron's model, there is a clear connection between his theory and the Perron-Frobenius theorem. Journal: Economic Systems Research Pages: 439-452 Issue: 4 Volume: 19 Year: 2007 Keywords: Frobenius, Leontief, Perron, Potron, Sraffa, X-DOI: 10.1080/09535310701698563 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310701698563 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:19:y:2007:i:4:p:439-452 Template-Type: ReDIF-Article 1.0 Author-Name: Thijs Ten Raa Author-X-Name-First: Thijs Ten Author-X-Name-Last: Raa Title: The Extraction of Technical Coefficients from Input and Output Data Abstract: Presumably, input-output coefficients reflect technology, and these coefficients measure the input requirements per unit of product. This concept has been extended to consumption theory, where it models expenditure shares. Input-output coefficients are extracted from the national accounts of an economy, by taking average proportions between inputs and outputs. Since the latter represent all sorts of inefficiencies, this practice blurs the measurement of technology. Input requirements are better measured by minimal proportions between inputs and outputs. This approach separates the measurement of technology from that of productive efficiency. Journal: Economic Systems Research Pages: 453-459 Issue: 4 Volume: 19 Year: 2007 Keywords: Input-output coefficient, X-DOI: 10.1080/09535310701698597 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310701698597 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:19:y:2007:i:4:p:453-459 Template-Type: ReDIF-Article 1.0 Author-Name: Manfred Lenzen Author-X-Name-First: Manfred Author-X-Name-Last: Lenzen Author-Name: Richard Wood Author-X-Name-First: Richard Author-X-Name-Last: Wood Author-Name: Blanca Gallego Author-X-Name-First: Blanca Author-X-Name-Last: Gallego Title: Some Comments on the GRAS Method Abstract: Junius and Oosterhaven (2003) present a RAS matrix balancing variant that can incorporate negative elements in the balancing. There are, however, a couple of issues in the approach described - the first being the handling of zeros in the initial estimate, and the second being the formulation of their minimum-information principle. We present a corrected exposition of GRAS. Journal: Economic Systems Research Pages: 461-465 Issue: 4 Volume: 19 Year: 2007 Keywords: RAS matrix balancing, GRAS, optimisation, X-DOI: 10.1080/09535310701698613 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310701698613 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:19:y:2007:i:4:p:461-465 Template-Type: ReDIF-Article 1.0 Author-Name: Erik Dietzenbacher Author-X-Name-First: Erik Author-X-Name-Last: Dietzenbacher Title: Editorial Abstract: Journal: Economic Systems Research Pages: 1-1 Issue: 1 Volume: 20 Year: 2008 X-DOI: 10.1080/09535310801890599 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310801890599 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:20:y:2008:i:1:p:1-1 Template-Type: ReDIF-Article 1.0 Author-Name: Shigemi Kagawa Author-X-Name-First: Shigemi Author-X-Name-Last: Kagawa Author-Name: Yuki Kudoh Author-X-Name-First: Yuki Author-X-Name-Last: Kudoh Author-Name: Keisuke Nansai Author-X-Name-First: Keisuke Author-X-Name-Last: Nansai Author-Name: Tomohiro Tasaki Author-X-Name-First: Tomohiro Author-X-Name-Last: Tasaki Title: The Economic and Environmental Consequences of Automobile Lifetime Extension and Fuel Economy Improvement: Japan's Case Abstract: The presenft paper develops a structural decomposition analysis with cumulative product lifetime distributions to estimate the effects of both product lifetime shifts and energy efficiency changes on the embodied energy consumptions. The empirical analysis focuses on automobile use (ordinary passenger vehicles, small passenger vehicles, and light passenger vehicles) in Japan during the period 1990-2000. It reveals that the lifetime extension of existing old vehicles during the study period was more beneficial to the environment than purchasing new passenger vehicles with a relatively high fuel economy, because the lifetime extension empirically contributed to reducing the embodied energy consumption at the production and end-use stages. We also found that the energy-saving impact of a one-year lifetime extension was approximately 1.3 times larger than that of the most significant technological improvement in the electric power generation sector. Journal: Economic Systems Research Pages: 3-28 Issue: 1 Volume: 20 Year: 2008 Keywords: Passenger vehicle use, gasoline consumption, passenger vehicle lifetime, fuel economy, rebound effect, technological change, X-DOI: 10.1080/09535310801890615 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310801890615 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:20:y:2008:i:1:p:3-28 Template-Type: ReDIF-Article 1.0 Author-Name: Joost Santos Author-X-Name-First: Joost Author-X-Name-Last: Santos Author-Name: Kash Barker Author-X-Name-First: Kash Author-X-Name-Last: Barker Author-Name: Paul Zelinke Author-X-Name-First: Paul Author-X-Name-Last: Zelinke Title: Sequential Decision-making in Interdependent Sectors with Multiobjective Inoperability Decision Trees: Application to Biofuel Subsidy Analysis Abstract: Decision-making involving large-scale systems often involves considerations for temporal changes, interdependencies in organizational structures, multiple competing objectives, and risk and uncertainty, among others. In this paper we develop a risk-based methodology, the Multiobjective Inoperability Decision Tree (MOIDT). It integrates several dimensions of decision-making processes associated with interconnected systems in terms of: (i) evaluation of sequential policies; (ii) analysis of interdependencies; (iii) treatment of multiple objectives and their tradeoffs; and (iv) characterization of uncertainties. To demonstrate the integration of these four components, we present a case study to analyze the impact of government policies towards mass-scale biofuel production. Using a multi-period decision framework, the analysis utilizes economic input-output data to model the probabilistic demand adjustments for sectors that will likely be affected by biofuel policies. Journal: Economic Systems Research Pages: 29-56 Issue: 1 Volume: 20 Year: 2008 Keywords: Interdependency analysis, multiobjective decision-making, sequential decision-making, extreme event analysis, X-DOI: 10.1080/09535310801890672 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310801890672 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:20:y:2008:i:1:p:29-56 Template-Type: ReDIF-Article 1.0 Author-Name: Antonio Morillas Author-X-Name-First: Antonio Author-X-Name-Last: Morillas Author-Name: Barbara Diaz Author-X-Name-First: Barbara Author-X-Name-Last: Diaz Title: Key Sectors, Industrial Clustering and Multivariate Outliers Abstract: In this paper a reflection is made on the problems that can arise in key sector analysis and industrial clustering, due to the usual presence of outliers when using multidimensional data related to the sectors in an input-output table. Multidimensional outliers are considered as being not only linked to the low number of clusters usually observed in this kind of study, but probably causing invalid results in most of the works involving multivariate statistical techniques, such as cluster and factor analysis. Actually, by comparing the key sectors of the Spanish economy obtained in Diaz et al. (2006) to the ones we get taking into account the problem the outliers pose, one can realize they greatly distort the results. On the other hand, it is shown that identification of outliers can be considered as a good and new procedure to help select the most important sectors in an economy. Journal: Economic Systems Research Pages: 57-73 Issue: 1 Volume: 20 Year: 2008 Keywords: Key sectors, industrial clustering, multidimensional outliers, input-output analysis, Spanish economy, X-DOI: 10.1080/09535310801890698 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310801890698 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:20:y:2008:i:1:p:57-73 Template-Type: ReDIF-Article 1.0 Author-Name: Miguel angel Tarancon Author-X-Name-First: Miguel angel Author-X-Name-Last: Tarancon Author-Name: Fernando Callejas Author-X-Name-First: Fernando Author-X-Name-Last: Callejas Author-Name: Erik Dietzenbacher Author-X-Name-First: Erik Author-X-Name-Last: Dietzenbacher Author-Name: Michael Lahr Author-X-Name-First: Michael Author-X-Name-Last: Lahr Title: A Revision of the Tolerable Limits Approach: Searching for the Important Coefficients Abstract: A wide range of approaches are available for classifying coefficients according to their importance to an economy. The 'tolerable limits' approach is one that has been extensively written about. Nevertheless, it seems unsuitable for assessing the overall importance of a coefficient to an economy, but instead appears to be rather well suited for determining how much a selling sector depends upon its customers. We therefore suggest two alternative approaches for measuring a sector's importance to an economy. The first is an application of the concept of elasticity based on Sherman and Morrison's (1950) formula. The second approach applies linear programming. We compare these various alternatives using the domestic IO tables of eight European countries. Journal: Economic Systems Research Pages: 75-95 Issue: 1 Volume: 20 Year: 2008 Keywords: Tolerable limits, elasticity, linear programming, important coefficients, X-DOI: 10.1080/09535310801890714 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310801890714 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:20:y:2008:i:1:p:75-95 Template-Type: ReDIF-Article 1.0 Author-Name: Paul De Boer Author-X-Name-First: Paul Author-X-Name-Last: De Boer Title: Additive Structural Decomposition Analysis and Index Number Theory: An Empirical Application of the Montgomery Decomposition Abstract: In recent years, a large number of empirical articles on structural decomposition analysis, which aims at disentangling an aggregate change in a variable into its r factors, has been published in this journal. Commonly used methods are the average of the two polar decompositions and the average of all r! elementary decompositions (Dietzenbacher and Los, 1998, D&L). We propose to use instead the 'ideal' Montgomery decomposition, which means that it satisfies the requirement of factor reversal imposed in index number theory. We prefer it to the methods previously mentioned. The average of the two polar decompositions is not 'ideal', so that the outcome depends on the ordering of the factors. The average of all elementary decompositions is 'ideal', but requires the computation of an ever increasing number of decompositions when the number of factors increases. Application to the example of D&L (four factors) shows that the three methods yield results that are close to each other. Journal: Economic Systems Research Pages: 97-109 Issue: 1 Volume: 20 Year: 2008 Keywords: Additive decomposition, index number theory, structural decomposition analysis, X-DOI: 10.1080/09535310801892066 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310801892066 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:20:y:2008:i:1:p:97-109 Template-Type: ReDIF-Article 1.0 Author-Name: Wenfeng Huang Author-X-Name-First: Wenfeng Author-X-Name-Last: Huang Author-Name: Shintaro Kobayashi Author-X-Name-First: Shintaro Author-X-Name-Last: Kobayashi Author-Name: Hajime Tanji Author-X-Name-First: Hajime Author-X-Name-Last: Tanji Title: Updating an Input-Output Matrix with Sign-preservation: Some Improved Objective Functions and their Solutions Abstract: This paper presents an easy-to-use method for updating input-output (IO) matrices with sign-preservation by combining Lagrangian multipliers and penalty functions. Biproportional methods such as the representative RAS are very simple and popular because a target matrix can be obtained simply by iterative computation. However, they cannot reasonably deal with matrices that include negative entries. Although a generalized version, GRAS, can do so, its objective function is questionable. In contrast, some non-biproportional methods such as those that take weighted or unweighted squared differences between the target and original matrix as objective functions can deal with negative entries, but it is difficult to guarantee the signs of entries. In this study, GRAS and some conventional objective functions were improved and their solutions for preserving the signs of entries are presented. Comparisons of applying these objective functions to a simple example show that both the Improved Normalized Squared Differences (INSD) function and the Improved GRAS (IGRAS) function yield a good target matrix and are close to each other; we suggest that INSD or IGRAS be used for updating IO transaction matrices in practice. Journal: Economic Systems Research Pages: 111-123 Issue: 1 Volume: 20 Year: 2008 Keywords: Input-Output, RAS, objective function, sign-preservation, X-DOI: 10.1080/09535310801892082 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310801892082 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:20:y:2008:i:1:p:111-123 Template-Type: ReDIF-Article 1.0 Author-Name: Michael Lahr Author-X-Name-First: Michael Author-X-Name-Last: Lahr Title: Book Review Abstract: Journal: Economic Systems Research Pages: 125-128 Issue: 1 Volume: 20 Year: 2008 X-DOI: 10.1080/09535310801892090 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310801892090 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:20:y:2008:i:1:p:125-128 Template-Type: ReDIF-Article 1.0 Author-Name: Erik Dietzenbacher Author-X-Name-First: Erik Author-X-Name-Last: Dietzenbacher Title: Editorial Abstract: Journal: Economic Systems Research Pages: 133-133 Issue: 2 Volume: 20 Year: 2008 X-DOI: 10.1080/09535310802075224 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310802075224 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:20:y:2008:i:2:p:133-133 Template-Type: ReDIF-Article 1.0 Author-Name: Christian Debresson Author-X-Name-First: Christian Author-X-Name-Last: Debresson Title: China's Growing Pains - Recent Input-Output Research in China on China: Foreword Abstract: Journal: Economic Systems Research Pages: 135-138 Issue: 2 Volume: 20 Year: 2008 X-DOI: 10.1080/09535310802075257 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310802075257 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:20:y:2008:i:2:p:135-138 Template-Type: ReDIF-Article 1.0 Author-Name: Xikang Chen Author-X-Name-First: Xikang Author-X-Name-Last: Chen Author-Name: Ju-E Guo Author-X-Name-First: Ju-E Author-X-Name-Last: Guo Author-Name: Cuihong Yang Author-X-Name-First: Cuihong Author-X-Name-Last: Yang Title: Yearly Grain Output Predictions in China 1980-2004 Abstract: China has a population of 1.3 billion and grain accordingly plays a crucial role in the Chinese economy. In this paper we suggest predicting grain output mainly by factor inputs and asset holding, and present a Systematic Integrated Prediction Approach (SIPA). The key elements of SIPA are an extended input-output model with assets, nonlinear variable coefficient forecasting equations, and using the minimum sum of the absolute values. Since 1980 we have used the approach to predict the yearly national grain output of China. The prediction lead time is more than half a year. The bumper, average, and poor harvests are accurately predicted every year. The average error rate over the period 1980-2004 is 1.9%. Journal: Economic Systems Research Pages: 139-150 Issue: 2 Volume: 20 Year: 2008 Keywords: Grain output prediction, Systematic Integrated Prediction Approach (SIPA), extended input-output model with assets, nonlinear forecasting, X-DOI: 10.1080/09535310802075273 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310802075273 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:20:y:2008:i:2:p:139-150 Template-Type: ReDIF-Article 1.0 Author-Name: Cuihong Yang Author-X-Name-First: Cuihong Author-X-Name-Last: Yang Author-Name: Xikang Chen Author-X-Name-First: Xikang Author-X-Name-Last: Chen Author-Name: Jian Xu Author-X-Name-First: Jian Author-X-Name-Last: Xu Title: A Method to Optimize Gross Fixed Capital Investments for Water Conservancy in China Abstract: A major concern of policymakers and researchers in China is finding an appropriate size of the gross fixed capital investments for water conservancy (GFCIWC). This paper determines the optimal proportion of GFCIWC to GDP. Unlike engineering economics, we investigate the benefits of GFCIWC at a macro-economic level, using the 1999 input-output table extended for water conservancy. Different kinds of impacts are induced by GFCIWC. These include forward benefits (flood control, water supply, irrigation, hydroelectric power, soil and water conservation, environmental protection) and backward benefits for GDP; negative social effects; and opportunity costs of GFCIWC. The results are put into a set of regression equations between total benefits of GFCIWC and the proportion of GFCIWC to GDP, from which the optimal proportion - or a desirable range - can be determined. The results may provide policymakers with guidelines for allocating investments. Journal: Economic Systems Research Pages: 151-172 Issue: 2 Volume: 20 Year: 2008 Keywords: Water conservancy, gross fixed capital investments, input-output analysis, China, X-DOI: 10.1080/09535310802075331 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310802075331 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:20:y:2008:i:2:p:151-172 Template-Type: ReDIF-Article 1.0 Author-Name: Xiuli Liu Author-X-Name-First: Xiuli Author-X-Name-Last: Liu Author-Name: Xikang Chen Author-X-Name-First: Xikang Author-X-Name-Last: Chen Title: Methods for Approximating the Shadow Price of Water in China Abstract: Using the input-output tables for water conservancy for the nine major river basins in China in combination with linear programming techniques, we calculate the shadow prices of industrial water and productive water in the nine river basins. After the results are subjected to factor analysis, the shadow prices of industrial water and productive water are obtained for each Chinese province in 1999. Then, nonlinear models for calculating the shadow price of water in specific counties are given. They appear to be valuable tools for setting reasonable water prices and establishing a market for water in China. Journal: Economic Systems Research Pages: 173-185 Issue: 2 Volume: 20 Year: 2008 Keywords: Water resources, shadow price, input-output model, linear programming, nonlinear models, X-DOI: 10.1080/09535310802075349 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310802075349 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:20:y:2008:i:2:p:173-185 Template-Type: ReDIF-Article 1.0 Author-Name: Ning Ai Author-X-Name-First: Ning Author-X-Name-Last: Ai Author-Name: Karen Polenske Author-X-Name-First: Karen Author-X-Name-Last: Polenske Title: Socioeconomic Impact Analysis of Yellow-dust Storms: An Approach and Case Study for Beijing Abstract: Dust storms can extensively disrupt socioeconomic activities and pose hazards to human health and the ecosystem; yet no one has made a systematic analysis of dust storms from an economic perspective. Using a case study for Beijing in 2000, we present a preliminary analysis of socioeconomic impacts of yellow-dust storms, integrating regional economic analysis models with environmental-economic evaluation techniques. Our analyses demonstrate that the costs of delayed effects of yellow-dust storms can be higher than those of the immediate effects, and that the impacts potentially caused by supply effects can be greater than those caused by demand effects. Because this is a preliminary analysis with extremely limited data, our primary purpose is not to produce precise numerical results, but to develop an integrated model that policy analysts can use and further improve in order to evaluate the comprehensive impacts of other phenomena with similar properties more accurately. Journal: Economic Systems Research Pages: 187-203 Issue: 2 Volume: 20 Year: 2008 Keywords: Dust storms, input-output analysis, socioeconomic impact analysis, China, X-DOI: 10.1080/09535310802075364 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310802075364 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:20:y:2008:i:2:p:187-203 Template-Type: ReDIF-Article 1.0 Author-Name: Hongxia Zhang Author-X-Name-First: Hongxia Author-X-Name-Last: Zhang Author-Name: Xikang Chen Author-X-Name-First: Xikang Author-X-Name-Last: Chen Title: An Extended Input-Output Model on Education and the Shortfall of Human Capital in China Abstract: This paper proposes an extended input-output model on education. Production is divided into two subsystems, the education sector and the non-education sector. The education sector is reflected by both 'monetary flows' and 'student flows.' Second, static and dynamic extended input-output models, including human capital production and allocation, are built. Third, the 1999 Chinese extended input-output table on education is compiled. Based on this table, the relation between human capital production and national economic development is analyzed. In particular, it is found that too few university graduates are 'produced', while a surplus of young people with only primary-school education go into industry. Journal: Economic Systems Research Pages: 205-221 Issue: 2 Volume: 20 Year: 2008 Keywords: Extended input-output model with assets, human capital, education, X-DOI: 10.1080/09535310802075414 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310802075414 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:20:y:2008:i:2:p:205-221 Template-Type: ReDIF-Article 1.0 Author-Name: Jin Shui Zhang Author-X-Name-First: Jin Shui Author-X-Name-Last: Zhang Title: A Multi-sector Nonlinear Dynamic Input-Output Model with Human Capital Abstract: In this paper, a two-sector model of endogenous growth is extended to a multi-sector nonlinear dynamic input-output model. If the model is on its balanced growth path (where prices - but not quantities - are assumed constant over time), it can be shown that the linear dynamic Leontief model is a special case. At the same time, on its balanced growth path, our model can be interpreted as a CGE model. The model distinguishes n + 1 sectors: n sectors producing physical goods, and one sector producing new human capital. A method is given for calculating the growth rate of GNP, the profit rate, the prices of goods, and the level of production when the model is on its balanced growth path. We point out the relation between the balanced growth rate and the profit rate. Journal: Economic Systems Research Pages: 223-237 Issue: 2 Volume: 20 Year: 2008 Keywords: Computable general equilibrium, balanced growth, Leontief linear input-output model, human capital, X-DOI: 10.1080/09535310802075463 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310802075463 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:20:y:2008:i:2:p:223-237 Template-Type: ReDIF-Article 1.0 Author-Name: Andrea Bonfiglio Author-X-Name-First: Andrea Author-X-Name-Last: Bonfiglio Author-Name: Francesco Chelli Author-X-Name-First: Francesco Author-X-Name-Last: Chelli Title: Assessing the Behaviour of Non-Survey Methods for Constructing Regional Input-Output Tables through a Monte Carlo Simulation Abstract: The paper aims to analyse the behaviour of a battery of non-survey techniques of constructing regional I-O tables in estimating impact. For this aim, a Monte Carlo simulation, based on the generation of 'true' multiregional I-O tables, was carried out. By aggregating multi-regional I-O tables, national I-O tables were obtained. From the latter, indirect regional tables were derived through the application of various regionalisation methods and the relevant multipliers were compared with the 'true' multipliers using a set of statistics. Three aspects of the behaviour of the methods have been analysed: performances to reproduce 'true' multipliers, variability of simulation error and direction of bias. The results have demonstrated that the Flegg et al. Location Quotient (FLQ) and its augmented version (AFLQ) represent an effective improvement of conventional techniques based on the use of location quotients in both reproducing 'true' multipliers and generating more stable simulation errors. In addition, the results have confirmed the existence of a tendency of the methods to over/underestimate impact. In the cases of the FLQ and the AFLQ, this tendency depends on the value of the parameter δ. Journal: Economic Systems Research Pages: 243-258 Issue: 3 Volume: 20 Year: 2008 Keywords: Input-Output matrices, non-survey techniques, Monte Carlo simulation, regional policy, X-DOI: 10.1080/09535310802344315 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310802344315 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:20:y:2008:i:3:p:243-258 Template-Type: ReDIF-Article 1.0 Author-Name: Giorgio Rampa Author-X-Name-First: Giorgio Author-X-Name-Last: Rampa Title: Using Weighted Least Squares to Deflate Input-Output Tables Abstract: This article proposes a balancing procedure for the deflation of input-output (I-O) tables from the viewpoint of users. This is a 'subjective' variant of the Weighted Least Squares (WLS) method, already known in the literature. It is argued that it is more flexible than other methods, and it is shown that SWLS subsumes the first-order approximation of RAS as a special case. Flexibility is due to the facts that (a) users can attach differential 'reliability' weights to first (unbalanced) estimates, depending on the confidence they have in the different parts of their pre-balancing work, (b) differently from RAS, one is not bound to take any row or column total as exogenously given, and (c) additional constraints can be added to it. The article describes also how SWLS was utilised to estimate a yearly (1959-2000) series of constant-price I-O tables for the Italian economy. Journal: Economic Systems Research Pages: 259-276 Issue: 3 Volume: 20 Year: 2008 Keywords: I-O tables, deflation, balancing, weighted least squares, X-DOI: 10.1080/09535310802344349 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310802344349 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:20:y:2008:i:3:p:259-276 Template-Type: ReDIF-Article 1.0 Author-Name: Massimiliano Mazzanti Author-X-Name-First: Massimiliano Author-X-Name-Last: Mazzanti Author-Name: Anna Montini Author-X-Name-First: Anna Author-X-Name-Last: Montini Author-Name: Roberto Zoboli Author-X-Name-First: Roberto Author-X-Name-Last: Zoboli Title: Environmental Kuznets Curves for Air Pollutant Emissions in Italy: Evidence from Environmental Accounts (NAMEA) Panel Data Abstract: This paper provides new empirical evidence on delinking and Environmental Kuznets Curves (EKC) for greenhouse gases and other air pollutant emissions in Italy. A panel dataset based on the Italian NAMEA (National Accounts Matrix including Environmental Accounts) for 1990-2001 is analysed. The highly disaggregated dataset (29 production branches, 12 years and nine air emissions) provides a large heterogeneity and can help to overcome the shortcomings of the usual approach to EKC based on cross-country data. Both value added and capital stock per employee are used as alternative drivers for analysing sectoral NAMEA emissions. Trade openness at the same sectoral level is also introduced among the covariates. We find mixed evidence supporting the EKC hypothesis. The analysis of NAMEA-based data shows that some of the pollutants such as two greenhouse gases (CO2 and CH4) and CO, produce inverted U-shaped curves with coherent within-range turning points. Other pollutants (SOX, NOX, PM10) show a monotonic or even N-shaped relationship. Macro sectoral disaggregated analysis highlights that the aggregated outcome should hide some heterogeneity across different groups of production branches (industry, manufacturing only and services). Services tend to present an inverted N-shape in most cases. Manufacturing industry shows a mix of inverted U and N-shapes, depending on the emission considered. The same is true for industry (all industries, not only manufacturing): although a turning point has been experienced, N-shapes may lead to increased emissions with respect to very high levels of the economic driver. In general, EKC evidence is more pronounced for greenhouse gases. The results suggest that analysis at macro sector (whole industry, manufacturing only and services) can be the most promising approach to future research on EKC. Journal: Economic Systems Research Pages: 277-301 Issue: 3 Volume: 20 Year: 2008 Keywords: Delinking, NAMEA, air pollutants, environmental Kuznets curves, X-DOI: 10.1080/09535310802344356 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310802344356 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:20:y:2008:i:3:p:277-301 Template-Type: ReDIF-Article 1.0 Author-Name: Simona Cantono Author-X-Name-First: Simona Author-X-Name-Last: Cantono Author-Name: Reinout Heijungs Author-X-Name-First: Reinout Author-X-Name-Last: Heijungs Author-Name: Rene Kleijn Author-X-Name-First: Rene Author-X-Name-Last: Kleijn Title: Environmental Accounting of Eco-innovations through Environmental Input-Output Analysis: The Case of Hydrogen and Fuel Cells Buses Abstract: The introduction of environmentally friendly innovations in both transport and energy sectors are included in the list of priorities of the European Union political agenda. This paper investigates the environmental consequences of the introduction of hydrogen and fuel cells technology in the European economic system by applying environmental input-output analysis and life cycle assessment tools. Hydrogen is produced through the reforming of natural gas and it is employed in fuel cells buses that offer transport services to final consumers. We have built three scenarios based on different assumptions on the final demand. We have shown the results for three impact categories: global warming, photochemical oxidation and acidification. The results suggest that the use of hydrogen in fuel cells buses is only environmentally desirable if accompanied either by the employment of renewable sources or by carbon dioxide capture, or both. Journal: Economic Systems Research Pages: 303-318 Issue: 3 Volume: 20 Year: 2008 Keywords: Environmental input-output analysis, life cycle assessment, hydrogen and fuel cells technology, X-DOI: 10.1080/09535310802346351 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310802346351 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:20:y:2008:i:3:p:303-318 Template-Type: ReDIF-Article 1.0 Author-Name: Akiko Nakajima Author-X-Name-First: Akiko Author-X-Name-Last: Nakajima Title: Total Labour Requirements and Value Added Productivity of Labour in the Process of Economic Development Abstract: When the inverse of the value added productivity of labour is regressed on total labour requirements (which is equivalent to labour values), a significant relationship is obtained. This indicates that the value added productivity of labour can be explained by total labour requirements (labour values). The mean value of the regression coefficients is about 1.7. The regression coefficients have a tendency to increase during the process of rapid economic development and to decrease afterwards. Such movements are explained by value added linkages. This study is based on input-output analysis, where total labour requirements per monetary unit of output and the value added productivity of labour are calculated for each of 24 industries in Japan, Korea and USA, every 5 years between 1960 to 1985. Journal: Economic Systems Research Pages: 319-330 Issue: 3 Volume: 20 Year: 2008 Keywords: Total labour requirements, value added productivity of labour, value added linkages, X-DOI: 10.1080/09535310802344380 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310802344380 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:20:y:2008:i:3:p:319-330 Template-Type: ReDIF-Article 1.0 Author-Name: onder Nomaler Author-X-Name-First: onder Author-X-Name-Last: Nomaler Author-Name: Bart Verspagen Author-X-Name-First: Bart Author-X-Name-Last: Verspagen Title: Knowledge Flows, Patent Citations and the Impact of Science on Technology Abstract: Technological innovation depends on knowledge developed by scientific research. The number of citations made in patents to the scientific literature has been suggested as an indicator of this process of transfer of knowledge from science to technology. We provide an intersectoral insight into this indicator, by breaking down patent citations into a sector-to-sector matrix of knowledge flows. We then propose a method to analyze this matrix and construct various indicators of science intensity of sectors, and the pervasiveness of knowledge flows. Our results indicate that the traditional measure of the number of citations to science literature per patent captures important aspects of intersectoral knowledge flows, but that other aspects are not captured. In particular, we show that high science intensity implies that sectors are net suppliers of knowledge in the economic sector, but that science intensity does not say much about pervasiveness of either knowledge use or knowledge supply by sectors. We argue that these results are related to the specific and specialized nature of knowledge. Journal: Economic Systems Research Pages: 339-366 Issue: 4 Volume: 20 Year: 2008 Keywords: Knowledge input-output analysis, knowledge flow matrices, science-to-technology transfer, X-DOI: 10.1080/09535310802551315 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310802551315 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:20:y:2008:i:4:p:339-366 Template-Type: ReDIF-Article 1.0 Author-Name: Esteban Fernandez-Vazquez Author-X-Name-First: Esteban Author-X-Name-Last: Fernandez-Vazquez Author-Name: Bart Los Author-X-Name-First: Bart Author-X-Name-Last: Los Author-Name: Carmen Ramos-Carvajal Author-X-Name-First: Carmen Author-X-Name-Last: Ramos-Carvajal Title: Using Additional Information in Structural Decomposition Analysis: The Path-based Approach Abstract: Structural decomposition analysis (SDA) is a well-known methodology to assess the relative importance of effects that together constitute the actual change in a variable of interest. A widely recognized problem of SDA is that the results often depend strongly on the specific decomposition formula chosen, while numerous formulae are equivalent from a theoretical point of view. This 'non-uniqueness' problem is often solved rather pragmatically, by reporting an average over (a subset of) all possible formulae. In this paper, we propose an approach that uses maximum entropy econometrics techniques to select a specific decomposition formula if additional information on one or more (but not all) determinants is available. We illustrate the method empirically by investigating the sources of change in real labour costs by industry in Spain, 1980-1994. Journal: Economic Systems Research Pages: 367-394 Issue: 4 Volume: 20 Year: 2008 Keywords: Structural decomposition analysis, maximum entropy econometrics, labour costs, Spain, X-DOI: 10.1080/09535310802551356 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310802551356 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:20:y:2008:i:4:p:367-394 Template-Type: ReDIF-Article 1.0 Author-Name: Jan Oosterhaven Author-X-Name-First: Jan Author-X-Name-Last: Oosterhaven Author-Name: Dirk Stelder Author-X-Name-First: Dirk Author-X-Name-Last: Stelder Author-Name: Satoshi Inomata Author-X-Name-First: Satoshi Author-X-Name-Last: Inomata Title: Estimating International Interindustry Linkages: Non-survey Simulations of the Asian-Pacific Economy Abstract: This paper evaluates a recently published semi-survey international input-output table for nine East-Asian countries and the USA with four non-survey estimation alternatives. A new generalized RAS procedure is used with stepwise increasing information from both import and export statistics as optimisation constraints on the four non-survey tables. The results show that the estimated table improves when increasing information from both sources is used, despite the well known inconsistencies between import and export data in trade statistics. It is concluded that the new procedure can be useful as a critical analysis of newly published (semi-)survey international tables and/or as an early updating tool during the construction process. Journal: Economic Systems Research Pages: 395-414 Issue: 4 Volume: 20 Year: 2008 Keywords: Non-survey estimates, international trade, input-output tables, East-Asia, United States, X-DOI: 10.1080/09535310802551448 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310802551448 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:20:y:2008:i:4:p:395-414 Template-Type: ReDIF-Article 1.0 Author-Name: Utz-Peter Reich Author-X-Name-First: Utz-Peter Author-X-Name-Last: Reich Title: Additivity of Deflated Input-Output Tables in National Accounts Abstract: Input-output tables deflated by chained prices indices are not additive over product rows. This paper discusses the reasons and suggests a remedy. The new method proposed is based on a distinction, in concept, between 'real value', on the one hand, and variation in 'volume', on the other. The first corrects for the monetary variation of the unit of account resulting from inflation, while the latter isolates the variation of one product price relative to the other products, caused by the forces of supply and demand on each individual commodity market. An example of the resulting growth analysis is compiled for the Dutch economy between years 1990 and 2000. Journal: Economic Systems Research Pages: 415-428 Issue: 4 Volume: 20 Year: 2008 Keywords: Index numbers, double deflation, additivity, value added, X-DOI: 10.1080/09535310802551455 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310802551455 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:20:y:2008:i:4:p:415-428 Template-Type: ReDIF-Article 1.0 Author-Name: Guang-Zhen Sun Author-X-Name-First: Guang-Zhen Author-X-Name-Last: Sun Title: The First Two Eigenvalues of Large Random Matrices and Brody's Hypothesis on the Stability of Large Input-Output Systems Abstract: Brody (1997) notices that for large random Leontief matrices, namely non-negative square matrices with all entries i.i.d., the ratio between the subdominant eigenvalue (in modulus) and the dominant eigenvalue declines generically to zero at a speed of the square root of the size of the matrix as the matrix size goes to infinity. Since then, several studies have been published in this journal in attempting to rigorously verify Brody's conjecture. This short article, drawing upon some theorems obtained in recent years in the literature on empirical spectral distribution of random matrices, offers a short proof of Brody's conjecture, and discusses briefly some related issues. Journal: Economic Systems Research Pages: 429-432 Issue: 4 Volume: 20 Year: 2008 Keywords: Spectra of random matrices, the Leontief matrix, convergence speed, X-DOI: 10.1080/09535310802551471 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310802551471 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:20:y:2008:i:4:p:429-432 Template-Type: ReDIF-Article 1.0 Author-Name: Arup Mitra Author-X-Name-First: Arup Author-X-Name-Last: Mitra Title: Trade Liberalization and India's Informal Economy Abstract: Journal: Economic Systems Research Pages: 433-434 Issue: 4 Volume: 20 Year: 2008 X-DOI: 10.1080/09535310802551505 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310802551505 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:20:y:2008:i:4:p:433-434 Template-Type: ReDIF-Article 1.0 Author-Name: Manfred Lenzen Author-X-Name-First: Manfred Author-X-Name-Last: Lenzen Author-Name: Bart Los Author-X-Name-First: Bart Author-X-Name-Last: Los Title: EDITORIAL Abstract: Journal: Economic Systems Research Pages: 1-2 Issue: 1 Volume: 21 Year: 2009 X-DOI: 10.1080/09535310802688646 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310802688646 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:21:y:2009:i:1:p:1-2 Template-Type: ReDIF-Article 1.0 Author-Name: Lining He Author-X-Name-First: Lining Author-X-Name-Last: He Author-Name: Faye Duchin Author-X-Name-First: Faye Author-X-Name-Last: Duchin Title: REGIONAL DEVELOPMENT IN CHINA: INTERREGIONAL TRANSPORTATION INFRASTRUCTURE AND REGIONAL COMPARATIVE ADVANTAGE Abstract: Significant economic disparities among China's Eastern, Central, and Western regions pose unequivocal challenges to social equality and political stability in the country. A major impediment to economic development, especially in the poor, remote Western region, is the shortage of a transportation infrastructure. The Chinese government has committed to substantial investment for improving the accessibility of this vast, land-locked region as a mechanism for promoting its development. The paper examines the impacts of the intended transportation infrastructure build-up on the Western region's comparative advantage and its interregional trade. The World Trade Model is extended to represent this investment and applied to determine interregional trade in China based on region-specific technologies, factor endowments and prices, and consumption patterns as well as the capacities and costs of carrying goods among regions using the interregional transportation infrastructure in place in the base year of 1997 and that planned for 2010 and 2020. The model is implemented for three regions, 27 sectors, and seven factors. The results indicate that the planned infrastructure build-up will be cost-effective, will increase benefits especially for the Western region, and that it can conserve energy overall at given levels of demand but substitute oil for coal. Based on these and other model results, some recommendations are offered about strategies for regional development in China. Journal: Economic Systems Research Pages: 3-22 Issue: 1 Volume: 21 Year: 2009 Keywords: Transportation infrastructure, Interregional trade, Regional development, China, X-DOI: 10.1080/09535310802703395 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310802703395 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:21:y:2009:i:1:p:3-22 Template-Type: ReDIF-Article 1.0 Author-Name: Manfred Lenzen Author-X-Name-First: Manfred Author-X-Name-Last: Lenzen Author-Name: Blanca Gallego Author-X-Name-First: Blanca Author-X-Name-Last: Gallego Author-Name: Richard Wood Author-X-Name-First: Richard Author-X-Name-Last: Wood Title: MATRIX BALANCING UNDER CONFLICTING INFORMATION Abstract: We have developed a generalised iterative scaling method (KRAS) that is able to balance and reconcile input-output tables and SAMs under conflicting external information and inconsistent constraints. Like earlier RAS variants, KRAS can: (a) handle constraints on arbitrarily sized and shaped subsets of matrix elements; (b) include reliability of the initial estimate and the external constraints; and (c) deal with negative values, and preserve the sign of matrix elements. Applying KRAS in four case studies, we find that, as with constrained optimisation, KRAS is able to find a compromise solution between inconsistent constraints. This feature does not exist in conventional RAS variants such as GRAS. KRAS can constitute a major advance for the practice of balancing input-output tables and Social Accounting Matrices, in that it removes the necessity of manually tracing inconsistencies in external information. This quality does not come at the expense of substantial programming and computational requirements (of conventional constrained optimisation techniques). Journal: Economic Systems Research Pages: 23-44 Issue: 1 Volume: 21 Year: 2009 Keywords: Matrix balancing, Inconsistent constraints, Constrained optimisation, RAS, X-DOI: 10.1080/09535310802688661 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310802688661 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:21:y:2009:i:1:p:23-44 Template-Type: ReDIF-Article 1.0 Author-Name: Ferran Sancho Author-X-Name-First: Ferran Author-X-Name-Last: Sancho Title: CALIBRATION OF CES FUNCTIONS FOR REAL-WORLD MULTISECTORAL MODELING Abstract: We show how to calibrate CES production and utility functions when indirect taxation affecting inputs and consumption is present. These calibrated functions can then be used in computable general equilibrium models. Taxation modifies the standard calibration procedures since any taxed good has two associated prices and a choice of reference value units has to be made. We also provide an example of computer code to solve the calibration of CES utilities under two alternate normalizations. Journal: Economic Systems Research Pages: 45-58 Issue: 1 Volume: 21 Year: 2009 Keywords: Calibration, CGE modeling, CES utility and cost functions, X-DOI: 10.1080/09535310902731270 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310902731270 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:21:y:2009:i:1:p:45-58 Template-Type: ReDIF-Article 1.0 Author-Name: Jose Rueda-Cantuche Author-X-Name-First: Jose Author-X-Name-Last: Rueda-Cantuche Author-Name: Joerg Beutel Author-X-Name-First: Joerg Author-X-Name-Last: Beutel Author-Name: Frederik Neuwahl Author-X-Name-First: Frederik Author-X-Name-Last: Neuwahl Author-Name: Ignazio Mongelli Author-X-Name-First: Ignazio Author-X-Name-Last: Mongelli Author-Name: Andreas Loeschel Author-X-Name-First: Andreas Author-X-Name-Last: Loeschel Title: A SYMMETRIC INPUT-OUTPUT TABLE FOR EU27: LATEST PROGRESS Abstract: The European Commission is currently establishing an Environmentally Extended Input-Output (EE-IO) Database for the EU27 developed by the Joint Research Centre at the Institute for Prospective Technological Studies (IPTS). This project attempts to generate an analytical dataset comprising all EU countries and yearly time series for the period 1995-2005. Since, for the time being, IO and environmental accounts data are only available with significant gaps part of the dataset will require estimates based on best available proxy data and reasonable assumptions. This paper is focused on the IO database shaped around Eurostat supply and use tables and symmetric IO tables consistent with the NACE classification. The paper describes the procedure by which the latest preliminary results have been obtained for an aggregate EU27 symmetric input-output table for the year 2000. Journal: Economic Systems Research Pages: 59-79 Issue: 1 Volume: 21 Year: 2009 Keywords: Environmentally extended input-output tables, System of national accounts, European Union, X-DOI: 10.1080/09535310802703429 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310802703429 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:21:y:2009:i:1:p:59-79 Template-Type: ReDIF-Article 1.0 Author-Name: Anders Hammer Strømman Author-X-Name-First: Anders Hammer Author-X-Name-Last: Strømman Title: A MULTI-OBJECTIVE ASSESSMENT OF INPUT-OUTPUT MATRIX UPDATING METHODS Abstract: This paper shows that important insights can be lost when assessing the relative performance of balancing methods solely based on individual optima. This is demonstrated through a multi-objective assessment. A trade-off curve between RAS and sign-preserving absolute differences (SPAD) is obtained based on the 60×60 Norwegian 2001 input-output table. The trade-off curve takes on a form that is close to a step function. This demonstrates that the solution surface around the RAS and SPAD optimums are very flat. Solutions can be identified that improve on the other objective or measure with little or marginal cost to the original objective function. Motivation for the assessment is provided, the technique applied is presented and the implications of the findings are discussed in an input-output and industrial ecology context. Journal: Economic Systems Research Pages: 81-88 Issue: 1 Volume: 21 Year: 2009 Keywords: Matrix balancing, Mathematical programming, RAS, Sign-preserving absolute differences, X-DOI: 10.1080/09535310902737228 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310902737228 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:21:y:2009:i:1:p:81-88 Template-Type: ReDIF-Article 1.0 Author-Name: Asao Ando Author-X-Name-First: Asao Author-X-Name-Last: Ando Author-Name: Bo Meng Author-X-Name-First: Bo Author-X-Name-Last: Meng Title: THE TRANSPORT SECTOR AND REGIONAL PRICE DIFFERENTIALS: A SPATIAL CGE MODEL FOR CHINESE PROVINCES Abstract: With regression formulas replaced by equilibrium conditions, a spatial CGE (Computable General Equilibrium) model can substantially reduce data requirements. Detailed regional analyses are thus possible in countries where only limited regional statistics are available. Alhough regional price differentials play important roles in multiregional settings, transport does not receive much attention in existing models. This paper formulates a spatial CGE model that explicitly considers the transport sector and FOB/CIF prices. After describing the model, the performance of our model is evaluated by comparing the benchmark equilibrium for China with a survey-based interregional I-O table for 1987. The structure of Chinese economies is summarized using information obtained from the benchmark equilibrium computation. This includes regional and sectoral production distributions and price differentials. The equilibrium for 1997 facilitates discussion of changes in regional economic structures that China has experienced in the decade. Journal: Economic Systems Research Pages: 89-113 Issue: 2 Volume: 21 Year: 2009 Keywords: SCGE model, FOB/CIF prices, Transport sector, Chinese regional economy, X-DOI: 10.1080/09535310903009627 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310903009627 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:21:y:2009:i:2:p:89-113 Template-Type: ReDIF-Article 1.0 Author-Name: Andrea Bonfiglio Author-X-Name-First: Andrea Author-X-Name-Last: Bonfiglio Title: ON THE PARAMETERIZATION OF TECHNIQUES FOR REPRESENTING REGIONAL ECONOMIC STRUCTURES Abstract: This paper is concerned with two parameterized methods of regionalising input-output coefficients: the Flegg et al. Location Quotient (FLQ) and its augmented version (AFLQ). For applying the two techniques, a parameter δ has to be estimated. In this regard, the paper faces two matters that are still open in the literature: the existence of a range of δ that can be used in different regions and the estimation of the most appropriate value of δ. For this aim, a Monte Carlo simulation has been carried out in order to generate 'true' multiregional I-O tables randomly. From the simulation, analyses based on probability distributions and regression were also carried out. Finally, these simulation results have been compared with those of an empirical case. Results confirm that there is actually a range of values of δ within which the best δ is more likely to fall. For the FLQ, this range is centred on 0.3 with an associated probability of 33% (if the width of the range is set at 0.1), whereas, for the AFLQ, the relevant range is between 0.3 and 0.4 with a probability by 38%. Finally, this paper provided a way to estimate the best δ for a given region, without knowing the relevant and detailed economic structure at sectoral level. Journal: Economic Systems Research Pages: 115-127 Issue: 2 Volume: 21 Year: 2009 Keywords: Non-survey techniques, Input-output matrices, Monte Carlo simulation, X-DOI: 10.1080/09535310902995727 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310902995727 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:21:y:2009:i:2:p:115-127 Template-Type: ReDIF-Article 1.0 Author-Name: Sandro Montresor Author-X-Name-First: Sandro Author-X-Name-Last: Montresor Author-Name: Giuseppe Vittucci Marzetti Author-X-Name-First: Giuseppe Vittucci Author-X-Name-Last: Marzetti Title: APPLYING SOCIAL NETWORK ANALYSIS TO INPUT-OUTPUT BASED INNOVATION MATRICES: AN ILLUSTRATIVE APPLICATION TO SIX OECD TECHNOLOGICAL SYSTEMS FOR THE MIDDLE 1990s Abstract: The paper discusses, illustrates and possibly contributes to overcoming two methodological problems that emerge in applying Social Network Analysis (SNA) to the study of IO-based innovation flows matrices. The first has to do with the scale-effects these matrices suffer from. The second refers to the need of dichotomising the matrices. Through an illustrative application to six OECD countries in the mid-1990s, the paper shows that, as for the former problem, different relativisation procedures can be, and have been, used, which either tend to alter the actual meaning of standard SNA indicators, or do not properly take into account the actual composition of countries' final demand. As for the latter problem, the paper shows that the choice of discrete cut-offs is extremely sensitive, as comparative results actually change along the continuum of the matrices values. In order to overcome the scale problem, a new relativisation procedure is put forward that measures innovation flows embodied in a unit value basket of final demand and thus properly retains all the information provided by the original matrix of intersectoral innovation (embodied) flows. In addressing the problem of dichotomisation, the paper suggests, as a second best, to work with density distributions that can make the choice of discrete cut-off values less arbitrary. Journal: Economic Systems Research Pages: 129-149 Issue: 2 Volume: 21 Year: 2009 Keywords: Technological systems, Embodied innovation flows, Input-Output analysis, Network analysis, X-DOI: 10.1080/09535310902940228 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310902940228 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:21:y:2009:i:2:p:129-149 Template-Type: ReDIF-Article 1.0 Author-Name: Amarendra Sahoo Author-X-Name-First: Amarendra Author-X-Name-Last: Sahoo Author-Name: Thijs ten Raa Author-X-Name-First: Thijs Author-X-Name-Last: ten Raa Title: THE RELATIVE PERFORMANCE OF FORMAL AND INFORMAL SECTORS IN INDIA Abstract: We evaluate the relative performance of formal and informal sectors in India by looking into their productivity difference. Recognizing the intersectoral linkages in the economy, the competitive general equilibrium prices are computed; these signal the productivities. Our model synthesizes frontier analysis with the general equilibrium approach to generate shadow prices. The formal activities are found to be more productive than the informal. However, the informal services sector is as efficient as the formal one. There would be an overall productivity gain of 22% to the economy if factors were allocated to productive activities. The shadow prices from the model indicate that the formal capital and informal capital are scarce factors, while it has been the opposite for formal (regular) and informal (casual) labour. Formal labour is more productive than its informal counterpart; formal capital and informal capital are equally productive. Journal: Economic Systems Research Pages: 151-162 Issue: 2 Volume: 21 Year: 2009 Keywords: Productivity, Formal and informal sectors, Competitive prices, General equilibrium, X-DOI: 10.1080/09535310902995719 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310902995719 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:21:y:2009:i:2:p:151-162 Template-Type: ReDIF-Article 1.0 Author-Name: Paul De Boer Author-X-Name-First: Paul Author-X-Name-Last: De Boer Title: MULTIPLICATIVE DECOMPOSITION AND INDEX NUMBER THEORY: AN EMPIRICAL APPLICATION OF THE SATO-VARTIA DECOMPOSITION Abstract: In de Boer (2008), additive decompositions of aggregate changes in a variable into its factors were considered. We proposed using the 'ideal' Montgomery decomposition, developed in index number theory as an alternative to the commonly used methods in structural decomposition analysis, and applied it to the example analyzed by Dietzenbacher and Los (1998) (D&L). In this paper we consider multiplicative decompositions and show that the method proposed by D&L of taking the geometric mean of all elementary decompositions is 'ideal'. However, it requires the computation of an ever-increasing number of decompositions when the number of factors increases. As an alternative, we propose using the Sato-Vartia decomposition, which is also 'ideal', but requires the computation of only one decomposition. Application to the example of D&L reveals that the two methods yield results that are very close to each other. Journal: Economic Systems Research Pages: 163-174 Issue: 2 Volume: 21 Year: 2009 Keywords: Multiplicative decomposition, Index number theory, Structural decomposition analysis, Siegel-Shapley decomposition, X-DOI: 10.1080/09535310902937638 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310902937638 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:21:y:2009:i:2:p:163-174 Template-Type: ReDIF-Article 1.0 Author-Name: Thomas Wiedmann Author-X-Name-First: Thomas Author-X-Name-Last: Wiedmann Title: EDITORIAL: CARBON FOOTPRINT AND INPUT-OUTPUT ANALYSIS - AN INTRODUCTION Abstract: This editorial is the introduction to a special issue of Economic Systems Research on the topic of carbon footprint and input-output analysis. It provides a brief historical context of the involvement of input-output analysis with applications in environmental research and makes the link to carbon footprint theory and practice. The six papers in this issue are briefly introduced. The aim of the special issue is to bring together the academic world of rigorous economic modelling and the practice of greenhouse gas accounting at various levels. Journal: Economic Systems Research Pages: 175-186 Issue: 3 Volume: 21 Year: 2009 Keywords: Carbon footprint, Input-output analysis, Greenhouse gas accounting, X-DOI: 10.1080/09535310903541256 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310903541256 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:21:y:2009:i:3:p:175-186 Template-Type: ReDIF-Article 1.0 Author-Name: J. C. Minx Author-X-Name-First: J. C. Author-X-Name-Last: Minx Author-Name: T. Wiedmann Author-X-Name-First: T. Author-X-Name-Last: Wiedmann Author-Name: R. Wood Author-X-Name-First: R. Author-X-Name-Last: Wood Author-Name: G. P. Peters Author-X-Name-First: G. P. Author-X-Name-Last: Peters Author-Name: M. Lenzen Author-X-Name-First: M. Author-X-Name-Last: Lenzen Author-Name: A. Owen Author-X-Name-First: A. Author-X-Name-Last: Owen Author-Name: K. Scott Author-X-Name-First: K. Author-X-Name-Last: Scott Author-Name: J. Barrett Author-X-Name-First: J. Author-X-Name-Last: Barrett Author-Name: K. Hubacek Author-X-Name-First: K. Author-X-Name-Last: Hubacek Author-Name: G. Baiocchi Author-X-Name-First: G. Author-X-Name-Last: Baiocchi Author-Name: A. Paul Author-X-Name-First: A. Author-X-Name-Last: Paul Author-Name: E. Dawkins Author-X-Name-First: E. Author-X-Name-Last: Dawkins Author-Name: J. Briggs Author-X-Name-First: J. Author-X-Name-Last: Briggs Author-Name: D. Guan Author-X-Name-First: D. Author-X-Name-Last: Guan Author-Name: S. Suh Author-X-Name-First: S. Author-X-Name-Last: Suh Author-Name: F. Ackerman Author-X-Name-First: F. Author-X-Name-Last: Ackerman Title: INPUT-OUTPUT ANALYSIS AND CARBON FOOTPRINTING: AN OVERVIEW OF APPLICATIONS Abstract: This article provides an overview of how generalised multi-regional input-output models can be used for carbon footprint applications. We focus on the relevance and suitability of such evidence to inform decision making. Such an overview is currently missing. Drawing on UK results, we cover carbon footprint applications in seven areas: national emissions inventories and trade, emission drivers, economic sectors, supply chains, organisations, household consumption and lifestyles as well as sub-national emission inventories. The article highlights the multiple uses of generalised multi-regional input-output models for carbon footprinting and concludes by highlighting important avenues for future research. Journal: Economic Systems Research Pages: 187-216 Issue: 3 Volume: 21 Year: 2009 Keywords: Multi-regional input-output model, Carbon footprint, Emission inventory, Trade, Consumption-based accounting, X-DOI: 10.1080/09535310903541298 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310903541298 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:21:y:2009:i:3:p:187-216 Template-Type: ReDIF-Article 1.0 Author-Name: Y. Anny Huang Author-X-Name-First: Y. Anny Author-X-Name-Last: Huang Author-Name: Manfred Lenzen Author-X-Name-First: Manfred Author-X-Name-Last: Lenzen Author-Name: Christopher Weber Author-X-Name-First: Christopher Author-X-Name-Last: Weber Author-Name: Joy Murray Author-X-Name-First: Joy Author-X-Name-Last: Murray Author-Name: H. Scott Matthews Author-X-Name-First: H. Scott Author-X-Name-Last: Matthews Title: THE ROLE OF INPUT-OUTPUT ANALYSIS FOR THE SCREENING OF CORPORATE CARBON FOOTPRINTS Abstract: In developing a standardised approach for companies to inventory greenhouse gas (GHG) emissions along their value chains, key challenges identified by stakeholders and technical experts include: which emissions sources a company should include in their inventory and how to calculate them, what constitutes a full list of indirect supply chain activities, and how to determine which activities from such a list are significant by application of a cut-off threshold. Using GHG accounting based on input-output models from Australia and the United States, this work presents specific case study examples and general results for broad industry sectors in both economies to address the development of a complete upstream carbon footprint for screening purposes. This is followed by an analysis of the issues surrounding application of cut-off thresholds and the relationship with system capture rate and efforts in carbon footprint analysis. This knowledge can inform decision makers about where to expend effort in gaining progressively greater accuracy for informed purchasing, investing, claiming carbon credits, and policy-making. The results from this work elucidate several findings: while it is probably true that some companies will know what sources contribute most significantly in the supply chain, this is not likely to be true for all. Contrary to common perception, scope 1&2 emissions are not always more significant than scope-3 sources, and, for some sectors, the largest sources of emissions may be buried further upstream than many companies may have previously perceived. Compiling a list of core elements of significance across all sectors may be problematic because these elements are not necessarily significant for most sectors. Lastly, the application of cut-off thresholds results in highly variable performance in footprint capture rate and is not a reliable criterion for including emission sources in GHG footprints. Input-output analysis is a powerful tool in informing supply-chain GHG accounting, and there is a need for plain language education, training, support materials and information to be made easily accessible to a global business community. Journal: Economic Systems Research Pages: 217-242 Issue: 3 Volume: 21 Year: 2009 Keywords: GHG accounting, Carbon footprint, Input-output analysis, Structural path analysis, X-DOI: 10.1080/09535310903541348 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310903541348 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:21:y:2009:i:3:p:217-242 Template-Type: ReDIF-Article 1.0 Author-Name: Richard Wood Author-X-Name-First: Richard Author-X-Name-Last: Wood Author-Name: Christopher Dey Author-X-Name-First: Christopher Author-X-Name-Last: Dey Title: AUSTRALIA'S CARBON FOOTPRINT Abstract: This paper gives an overview of the construction techniques and methods used to assign greenhouse gas accounts to industry sectors and of the use of input-output analysis to subsequently calculate the carbon footprint of Australia. The work is motivated by the introduction of an emissions-trading scheme in Australia, and by the need for policy to be developed around the direct and indirect (life-cycle) greenhouse gas emissions of industries, especially with regards to the trade exposure of industries with large carbon footprints. Greenhouse gas multipliers, which show the carbon footprint intensity of consumption items, are calculated to gain insight into opportunities for 'greening' consumption. Key industries are identified in relation to both greenhouse gas emissions and economic importance. The effects of imports, exports and capital consumption are explored and a brief analysis of the change in greenhouse gas multipliers over time is given. Journal: Economic Systems Research Pages: 243-266 Issue: 3 Volume: 21 Year: 2009 Keywords: Australia, Input-output analysis, Carbon footprint, Greenhouse gas emissions, Sectoral analysis, X-DOI: 10.1080/09535310903541397 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310903541397 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:21:y:2009:i:3:p:243-266 Template-Type: ReDIF-Article 1.0 Author-Name: Keisuke Nansai Author-X-Name-First: Keisuke Author-X-Name-Last: Nansai Author-Name: Shigemi Kagawa Author-X-Name-First: Shigemi Author-X-Name-Last: Kagawa Author-Name: Yasushi Kondo Author-X-Name-First: Yasushi Author-X-Name-Last: Kondo Author-Name: Sangwon Suh Author-X-Name-First: Sangwon Author-X-Name-Last: Suh Author-Name: Rokuta Inaba Author-X-Name-First: Rokuta Author-X-Name-Last: Inaba Author-Name: Kenichi Nakajima Author-X-Name-First: Kenichi Author-X-Name-Last: Nakajima Title: IMPROVING THE COMPLETENESS OF PRODUCT CARBON FOOTPRINTS USING A GLOBAL LINK INPUT-OUTPUT MODEL: THE CASE OF JAPAN Abstract: This paper is concerned with the main activities of Japan's 'Disclosure of CO2 emissions' programme, aimed at illustrating the CO2 emissions associated with consumer products as a 'carbon footprint' (CF). Although the current, provisional guidelines for calculating product carbon footprints specify that only the bottom-up approach is to be used for this purpose, this paper presents useful applications of input-output analysis that can improve the reliability of the method considerably, by taking full advantage of the strengths of input-output analysis. To this end, we first estimated the global carbon footprint (GCF) of food and consumables in Japan, using a global link input-output (GLIO) model comprising 804 economic sectors in Japan and 230 foreign countries and regions. By visualizing the GCF on a world map, the global distribution (including Middle East and African countries) of the induced CO2 emissions of each of the Japanese sectors were identified. To investigate the scope for reducing the data collection burden for CF practitioners, GCFs were compared with CFs obtained using a single-region input-output model. This showed that there are certain commodity groups with a CF equating to 70% to over 90% of the corresponding GCF, even if the imported goods used for producing a Japanese domestic product are considered environmentally equivalent to their domestically produced counterparts. Furthermore, it was identified which data should preferably be collected by the bottom-up approach to secure CO2 emissions coverage greater than a certain predefined level and keep data and labour costs at a minimum. Journal: Economic Systems Research Pages: 267-290 Issue: 3 Volume: 21 Year: 2009 Keywords: Carbon footprint, Product category rules, Completeness, Embodied carbon intensity, Multiregional model, System boundary, Input-output analysis, Global model, X-DOI: 10.1080/09535310903541587 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310903541587 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:21:y:2009:i:3:p:267-290 Template-Type: ReDIF-Article 1.0 Author-Name: Harry Wilting Author-X-Name-First: Harry Author-X-Name-Last: Wilting Author-Name: Kees Vringer Author-X-Name-First: Kees Author-X-Name-Last: Vringer Title: CARBON AND LAND USE ACCOUNTING FROM A PRODUCER'S AND A cONSUMER'S PERSPECTIVE - AN EMPIRICAL EXAMINATION COVERING THE WORLD Abstract: National policies for reducing environmental pressures stemming from emissions and the use of natural resources usually adopt a producer approach, i.e. the legislation refers to pressures occurring within the territorial boundaries of a country. An alternative approach to environmental accounting is the consumer approach, which includes environmental pressures associated with imports for domestic consumption, wherever these pressures occur. The carbon footprint, for example, is such an approach, in which CO2 or greenhouse gas (GHG) emissions are considered from a consumer's perspective. The consumer approach may offer new ways for policies to reduce pressures, and therefore it would be interesting to adopt this perspective in national environmental policy-making and international negotiations. To gain insight into the differences between the approaches, this paper discusses the concepts of both, showing the results of an empirical analysis and going into the application of the two different perspectives in (international) environmental policies. Due to international trade, the environmental pressures accounted for in a producer's and a consumer's perspective are usually not the same for a country. This paper presents a worldwide overview, comparing the outcomes for the two approaches with regard to GHG emissions and land use, for 12 world regions. Furthermore, for GHG emissions, a quantitative comparison was made between 87 countries and regions covering the world. Consumption-related GHG emissions and land use per capita were calculated with a full multi-regional input-output (MRIO) model. MRIO analysis is an attractive method for footprint analyses in an international context. The research shows that, for most developed countries, GHG emissions and land use are higher in the consumer approach than in the producer approach. For most developing countries, the opposite is true. Before applying national targets to the consumer approach - for instance, in climate policies - further improvements and standardisation of methodology and data will be necessary. Journal: Economic Systems Research Pages: 291-310 Issue: 3 Volume: 21 Year: 2009 Keywords: Footprint analysis, Multi-region input-output analysis, Environmental accounting, Environmental policy, Responsibility, X-DOI: 10.1080/09535310903541736 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310903541736 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:21:y:2009:i:3:p:291-310 Template-Type: ReDIF-Article 1.0 Author-Name: Robbie Andrew Author-X-Name-First: Robbie Author-X-Name-Last: Andrew Author-Name: Glen Peters Author-X-Name-First: Glen Author-X-Name-Last: Peters Author-Name: James Lennox Author-X-Name-First: James Author-X-Name-Last: Lennox Title: APPROXIMATION AND REGIONAL AGGREGATION IN MULTI-REGIONAL INPUT-OUTPUT ANALYSIS FOR NATIONAL CARBON FOOTPRINT ACCOUNTING Abstract: Multi-regional input-output (MRIO) analysis has been widely used to quantify the global environmental impacts (e.g. energy use, greenhouse gas emissions, water use) embodied in consumption and international trade. Often, analysts have used approximations to a full global MRIO model; however, without access to a full MRIO model the approximation errors are unknown. In this paper we use an MRIO model based on the dataset provided by the Global Trade Analysis Project (GTAP) to quantify the errors introduced by various approximations of the full MRIO model. We find that emissions embodied in imports contribute an average 40% of the total emissions embodied in countries' final demands. For the emissions embodied in imports, we find: (a) that the unidirectional trade model gives a good approximation to the full MRIO model when the number of regions in the model is small; (b) that including only the most important trade partner in terms of emissions embodied in imports can substantially improve the accuracy of estimates; and (c) that a world-average input-output table often provides a good representation of the aggregate 'rest of world' economy. Finally, assuming that imports are produced with domestic technology (Domestic Technology Assumption, DTA) in an MRIO model can introduce significant errors and requires careful validation before results are used. However, the DTA generally produces better estimates than ignoring imports altogether. Journal: Economic Systems Research Pages: 311-335 Issue: 3 Volume: 21 Year: 2009 Keywords: Input-output analysis, Carbon footprint, Approximation, Trade and environment, X-DOI: 10.1080/09535310903541751 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310903541751 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:21:y:2009:i:3:p:311-335 Template-Type: ReDIF-Article 1.0 Author-Name: Asuka Yamakawa Author-X-Name-First: Asuka Author-X-Name-Last: Yamakawa Author-Name: Glen Peters Author-X-Name-First: Glen Author-X-Name-Last: Peters Title: USING TIME-SERIES TO MEASURE UNCERTAINTY IN ENVIRONMENTAL INPUT-OUTPUT ANALYSIS Abstract: Environmental Input-Output Analysis (EIOA) is a tool for environmental analysis of broad classes of sectoral activities, taking into account indirect effects in other sectors in the supply chain. The core of EIOA is an input-output table (IOT) and national accounting matrix including environmental accounts (NAMEA) for a fixed base-year. We evaluate the uncertainty in EIOA using a time series of current-price IOT and NAMEA for 13 years from 1990 to 2002. We find annual variations in the current-price IOT and NAMEA, which may represent either realistic changes in production or measurement error. We assume the changes are errors and apply a regression analysis to remove the trends from the underlying data and estimate the uncertainty in the raw IOT. We then calculate the emissions for various final users and sectors to estimate the uncertainties from typical EIOA investigations. Using Monte Carlo analysis, we then investigate how well the variations in the current-price IOT and NAMEA over time may represent uncertainties. The results of this work have several implications for both statistical offices and the analyst. Statistical offices can provide details on data sources, methodologies, and estimates of annual variations. Analysts can incorporate this uncertainty information to understand the implications of uncertainty on their calculations and ultimately the policy recommendations derived from their studies. Journal: Economic Systems Research Pages: 337-362 Issue: 4 Volume: 21 Year: 2009 Keywords: Environmental input-output analysis, NAMEA, Uncertainty, National accounts, Monte Carlo analysis, X-DOI: 10.1080/09535310903444766 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310903444766 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:21:y:2009:i:4:p:337-362 Template-Type: ReDIF-Article 1.0 Author-Name: Jose Rueda-Cantuche Author-X-Name-First: Jose Author-X-Name-Last: Rueda-Cantuche Author-Name: Thijs Ten Raa Author-X-Name-First: Thijs Ten Author-X-Name-Last: Raa Title: THE CHOICE OF MODEL IN THE CONSTRUCTION OF INDUSTRY COEFFICIENTS MATRICES Abstract: Kop Jansen and ten Raa's (1990) characterization of product-by-product input-output tables was adopted by the United Nations (1993). Recent OECD and several EU funded projects, however, used industry-by-industry tables, which raises comparable issues concerning their construction. We show how their two main construction models are instances of the transfer principle, with alternative assumptions on the variation of input-output coefficients across product markets. We augment the theory by formulating desirable properties for industry tables and investigate the so-called fixed product and fixed industry sales structure models, which are used by statistical institutes. The fixed industry sales structure model is shown to be superior from an axiomatic point of view. Journal: Economic Systems Research Pages: 363-376 Issue: 4 Volume: 21 Year: 2009 Keywords: Input-output tables, Axiomatic approach, Industry tables, X-DOI: 10.1080/09535310903208344 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310903208344 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:21:y:2009:i:4:p:363-376 Template-Type: ReDIF-Article 1.0 Author-Name: Euijune Kim Author-X-Name-First: Euijune Author-X-Name-Last: Kim Author-Name: Geoffrey Hewings Author-X-Name-First: Geoffrey Author-X-Name-Last: Hewings Title: AN APPLICATION OF AN INTEGRATED TRANSPORT NETWORK - MULTIREGIONAL CGE MODEL TO THE CALIBRATION OF SYNERGY EFFECTS OF HIGHWAY INVESTMENTS Abstract: A transportation network-multiregional CGE model is applied to estimate the synergy effects of a set of highway projects on value added by region and industrial sector. This synergy effect is defined as a difference between the summation of the net GDP increase from the development of each highway sub-link without spatial linkage and the change in GDP resulting from the concurrent development of all links with spatial linkages. Among nine east-west highways in Korea, the East-West 9 highway increases the GDP by 0.3% over the 30-year time period horizon, with 0.016% of the GDP due to the synergy effect. The East-West 9 highway has the largest synergy effect of US$0.164 billion per year on the manufacturing sector of Kwangju Metropolitan Area, resulting in a gain in a regional GRP per capita of US$15.88 per year. Since most synergy effects are generated in less developed regions, highway development can contribute to the reduction in regional disparities. Journal: Economic Systems Research Pages: 377-397 Issue: 4 Volume: 21 Year: 2009 Keywords: Computable general equilibrium model, Transportation investment, Synergy effect, Regional social accounting matrix, X-DOI: 10.1080/09535310903444758 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310903444758 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:21:y:2009:i:4:p:377-397 Template-Type: ReDIF-Article 1.0 Author-Name: Andre Lemelin Author-X-Name-First: Andre Author-X-Name-Last: Lemelin Title: A GRAS VARIANT SOLVING FOR MINIMUM INFORMATION LOSS Abstract: The fundamental idea in Junius and Oosterhaven (2003) is to break down the information contained in the a priori data into two parts: algebraic signs, and absolute values. This approach is well grounded in information theory, and provides a basis on which to solve the problem of adjusting matrices with negative entries. However, Junius and Oosterhaven (2003) have formulated a target function that is not equivalent to the Kullback and Leibler (1951) cross-entropy measure, and so is not a representation of the minimum information loss principle. Neither is the alternative target function proposed by Lenzen et al. (2007). This paper develops the exact Kullback and Leibler cross-entropy measure. In addition, following the constrained optimization approach, this paper applies the same principle to solve adjustment problems where row-sums, column-sums or both are constrained to zero. Journal: Economic Systems Research Pages: 399-408 Issue: 4 Volume: 21 Year: 2009 Keywords: RAS matrix balancing, Negative entries, GRAS, Minimum cross-entropy, X-DOI: 10.1080/09535311003589310 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535311003589310 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:21:y:2009:i:4:p:399-408 Template-Type: ReDIF-Article 1.0 Author-Name: Giovanni Cerulli Author-X-Name-First: Giovanni Author-X-Name-Last: Cerulli Author-Name: Bianca Poti` Author-X-Name-First: Bianca Author-X-Name-Last: Poti` Title: MEASURING INTERSECTORAL KNOWLEDGE SPILLOVERS: AN APPLICATION OF SENSITIVITY ANALYSIS TO ITALY Abstract: R&D spillovers are unanimously considered as one of the main driving forces of technical change, innovation and economic growth. This paper aims at measuring interindustry R&D spillovers. We apply an 'uncertainty-sensitivity analysis' to the Italian input-output table of intermediate goods split into 31 economic sectors for the year 2000. The value added of using this methodology is the opportunity of distinguishing between spillover effects induced by productive linkages (the Leontief forward multipliers) and those activated by R&D investments, capturing the uncertain and non-linear nature of the relations between spillovers and factors affecting them. Journal: Economic Systems Research Pages: 409-436 Issue: 4 Volume: 21 Year: 2009 Keywords: R&D spillovers, Input-output models, Sensitivity analysis, Monte Carlo simulations, X-DOI: 10.1080/09535310903569216 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310903569216 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:21:y:2009:i:4:p:409-436 Template-Type: ReDIF-Article 1.0 Author-Name: Jan Oosterhaven Author-X-Name-First: Jan Author-X-Name-Last: Oosterhaven Author-Name: Norbert Rainer Author-X-Name-First: Norbert Author-X-Name-Last: Rainer Author-Name: Thijs ten Raa Author-X-Name-First: Thijs Author-X-Name-Last: ten Raa Author-Name: Joaquim Jose Martins Guilhoto Author-X-Name-First: Joaquim Jose Martins Author-X-Name-Last: Guilhoto Author-Name: Jodie Gonzalez Jennings Author-X-Name-First: Jodie Gonzalez Author-X-Name-Last: Jennings Author-Name: Jose Rueda-Cantuch Author-X-Name-First: Jose Author-X-Name-Last: Rueda-Cantuch Author-Name: Erik Dietzenbacher Author-X-Name-First: Erik Author-X-Name-Last: Dietzenbacher Author-Name: Bent Thage Author-X-Name-First: Bent Author-X-Name-Last: Thage Author-Name: Klaus Hubacek Author-X-Name-First: Klaus Author-X-Name-Last: Hubacek Author-Name: Erik Dietzenbacher Author-X-Name-First: Erik Author-X-Name-Last: Dietzenbacher Author-Name: Bart Los Author-X-Name-First: Bart Author-X-Name-Last: Los Author-Name: Christof Paparella Author-X-Name-First: Christof Author-X-Name-Last: Paparella Title: Annual Report 2008 Abstract: Journal: Economic Systems Research Pages: 437-445 Issue: 4 Volume: 21 Year: 2009 X-DOI: 10.1080/09535310903561924 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535310903561924 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:21:y:2009:i:4:p:437-445 Template-Type: ReDIF-Article 1.0 Author-Name: Manfred Lenzen Author-X-Name-First: Manfred Author-X-Name-Last: Lenzen Author-Name: Bart Los Author-X-Name-First: Bart Author-X-Name-Last: Los Title: EDITORIAL Abstract: Journal: Economic Systems Research Pages: 1-1 Issue: 1 Volume: 22 Year: 2010 X-DOI: 10.1080/09535311003715550 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535311003715550 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:22:y:2010:i:1:p:1-1 Template-Type: ReDIF-Article 1.0 Author-Name: Mark Orsi Author-X-Name-First: Mark Author-X-Name-Last: Orsi Author-Name: Joost Santos Author-X-Name-First: Joost Author-X-Name-Last: Santos Title: PROBABILISTIC MODELING OF WORKFORCE-BASED DISRUPTIONS AND INPUT-OUTPUT ANALYSIS OF INTERDEPENDENT RIPPLE EFFECTS Abstract: This paper extends the formulation of the input-output model to account for events that cause time varying and probabilistic workforce disruptions. One example of such an event is a pandemic, because the rates with which it affects the working population vary from period to period and are coupled with uncertainties. To address such complexities, the paper develops two extensions: (i) a method of translating unavailable workforce into a measure of sector productivity disruption, and (ii) a simulation framework to account for the possible variations in economic output losses. These extensions are implemented via a MATLAB program to simulate a pandemic scenario in the Commonwealth of Virginia. Journal: Economic Systems Research Pages: 3-18 Issue: 1 Volume: 22 Year: 2010 Keywords: Dynamic inoperability input-output model, Pandemic, Workforce disruptions, Virginia, X-DOI: 10.1080/09535311003612419 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535311003612419 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:22:y:2010:i:1:p:3-18 Template-Type: ReDIF-Article 1.0 Author-Name: Thomas Wiedmann Author-X-Name-First: Thomas Author-X-Name-Last: Wiedmann Author-Name: Richard Wood Author-X-Name-First: Richard Author-X-Name-Last: Wood Author-Name: Jan Minx Author-X-Name-First: Jan Author-X-Name-Last: Minx Author-Name: Manfred Lenzen Author-X-Name-First: Manfred Author-X-Name-Last: Lenzen Author-Name: Dabo Guan Author-X-Name-First: Dabo Author-X-Name-Last: Guan Author-Name: Rocky Harris Author-X-Name-First: Rocky Author-X-Name-Last: Harris Title: A CARBON FOOTPRINT TIME SERIES OF THE UK - RESULTS FROM A MULTI-REGION INPUT-OUTPUT MODEL Abstract: The framework and results of an international multi-region input-output (MRIO) model for the UK are presented. A time series of balanced input-output tables for the UK was constructed for the period 1992 to 2004 by using a matrix balancing procedure that is able to handle conflicting external data and inconsistent constraints. Detailed sectoral and country-specific trade data for the UK were compiled and reconciled with the UK input-output data, and economic and environmental accounts for three world regions were integrated in a UK-specific MRIO model. This was subsequently used to calculate a time series of national carbon footprints for the UK from 1992 to 2004. Greenhouse gas emissions embedded in UK trade are distinguished by destination of imports to intermediate and final demand. Most greenhouse gases show a significant increase over time in consumer emissions and a widening gap between producer and consumer emissions. Net CO2 emissions embedded in UK imports increased from 4.3% of producer emissions in 1992 to a maximum of 20% in 2002. The total estimated UK carbon footprint in 2004 was 730 Mt for CO2 and 934 Mt CO2 equivalents for all greenhouse gases. Journal: Economic Systems Research Pages: 19-42 Issue: 1 Volume: 22 Year: 2010 Keywords: Multi-region input-output model, Embedded greenhouse gas emissions, Carbon footprint, Consumer emissions, Balance of emissions embedded in trade (BEET), UK, X-DOI: 10.1080/09535311003612591 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535311003612591 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:22:y:2010:i:1:p:19-42 Template-Type: ReDIF-Article 1.0 Author-Name: Manfred Lenzen Author-X-Name-First: Manfred Author-X-Name-Last: Lenzen Author-Name: Richard Wood Author-X-Name-First: Richard Author-X-Name-Last: Wood Author-Name: Thomas Wiedmann Author-X-Name-First: Thomas Author-X-Name-Last: Wiedmann Title: UNCERTAINTY ANALYSIS FOR MULTI-REGION INPUT-OUTPUT MODELS - A CASE STUDY OF THE UK'S CARBON FOOTPRINT Abstract: This paper reviews and demonstrates methods available for estimating standard deviations for carbon multipliers in a multi-regional input-output (MRIO) framework. We attempt to capture all possible variations of underlying data and calculation procedures in a global MRIO model constructed with particular focus on the UK. We consider these variations to be random, and determine the stochastic variation of the whole MRIO system using Monte Carlo techniques. 5000 simulation runs were carried out to determine the standard deviations of multipliers. From these, the standard deviations of components of the UK's carbon footprint were estimated using error propagation. We estimate an 89% probability that the UK's carbon footprint has increased between 1994 and 2004. Journal: Economic Systems Research Pages: 43-63 Issue: 1 Volume: 22 Year: 2010 Keywords: Uncertainty, Multi-region input-output analysis, Monte Carlo analysis, Errors, UK, Carbon footprint, X-DOI: 10.1080/09535311003661226 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535311003661226 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:22:y:2010:i:1:p:43-63 Template-Type: ReDIF-Article 1.0 Author-Name: Mauricio Bittencourt Author-X-Name-First: Mauricio Author-X-Name-Last: Bittencourt Author-Name: Donald Larson Author-X-Name-First: Donald Author-X-Name-Last: Larson Author-Name: David Kraybill Author-X-Name-First: David Author-X-Name-Last: Kraybill Title: REGIONAL SHORT-RUN EFFECTS OF TRADE LIBERALIZATION IN BRAZIL Abstract: We use a single-country multi-regional computable general equilibrium model to evaluate regional short-run impacts of reduction in import tariffs resulting from recent free trade area agreements, on poverty and distribution of income in Brazil. Results show that trade can reduce inter-regional income inequality, but poor urban households lose with trade liberalization. Trade policy alone is not sufficient for achieving more equitable income distribution goals in Brazil. Without greater investment in human and physical capital, incomes in most regions of Brazil are likely to lag behind incomes in the South/Southeast, the most developed regions in the country. Journal: Economic Systems Research Pages: 65-85 Issue: 1 Volume: 22 Year: 2010 Keywords: Trade liberalization, Income distribution, CGE models, Brazil, X-DOI: 10.1080/09535311003677628 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535311003677628 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:22:y:2010:i:1:p:65-85 Template-Type: ReDIF-Article 1.0 Author-Name: Chang Seung Author-X-Name-First: Chang Author-X-Name-Last: Seung Author-Name: Edward Waters Author-X-Name-First: Edward Author-X-Name-Last: Waters Title: EVALUATING SUPPLY-SIDE AND DEMAND-SIDE SHOCKS FOR FISHERIES: A COMPUTABLE GENERAL EQUILIBRIUM (CGE) MODEL FOR ALASKA Abstract: This study used computable general equilibrium (CGE) models to investigate the economic effects of three exogenous shocks to Alaska fisheries: (1) reduction in pollock allowable catch (TAC); (2) increase in fuel price; and (3) reduction in demand for seafood. Two different model versions, 'Keynesian' and 'neoclassical', were used to estimate impacts on endogenous output, employment, value added, and household income. By using a CGE model, this study overcomes the limitations of fixed-price models (such as input-output models) including (1) inability to calculate welfare effects due to fixed prices; and (2) difficulty of addressing supply-side shocks. There are currently few examples of CGE studies addressing fisheries issues appearing in the literature. Among those, this study is unique in that it uses a relatively disaggregated sector scheme and examines both supply-side and demand-side shocks. Journal: Economic Systems Research Pages: 87-109 Issue: 1 Volume: 22 Year: 2010 Keywords: Computable general equilibrium, Alaska, Fisheries impacts, X-DOI: 10.1080/09535311003677636 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535311003677636 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:22:y:2010:i:1:p:87-109 Template-Type: ReDIF-Article 1.0 Author-Name: Marisa Civardi Author-X-Name-First: Marisa Author-X-Name-Last: Civardi Author-Name: Rosaria Vega Pansini Author-X-Name-First: Rosaria Vega Author-X-Name-Last: Pansini Author-Name: Renata Targetti Lenti Author-X-Name-First: Renata Author-X-Name-Last: Targetti Lenti Title: EXTENSIONS TO THE MULTIPLIER DECOMPOSITION APPROACH IN A SAM FRAMEWORK: AN APPLICATION TO VIETNAM Abstract: The aim of this paper is to provide an extension of a technique recently introduced by Pyatt and Round (2006) to decompose each element of the 'global multiplier matrix' in 'microscopic detail' in order to capture the linkages between each household groups' income and the exogenously injected income of other accounts. The methodology we propose allows dividing the impact of exogenous injections into four different effects: direct-direct effect (D-D); direct-indirect effect (D-I); indirect-direct effect (I-D) and indirect-indirect effect (I-I). Results using the 2000 Vietnamese SAM show that the highest direct effects on the income of household groups are related to exogenous injections into the agricultural sector, while the highest indirect effects result from investing in other agriculture-related sectors such as, for example, food processing. Policy interventions focusing on the agricultural sector and on rural households will thus have the greatest effect on reducing the level of income inequality. Journal: Economic Systems Research Pages: 111-128 Issue: 2 Volume: 22 Year: 2010 Keywords: Income distribution, Social Accounting Matrix, Multiplier decomposition, Inequality, X-DOI: 10.1080/09535314.2010.483224 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535314.2010.483224 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:22:y:2010:i:2:p:111-128 Template-Type: ReDIF-Article 1.0 Author-Name: Codrina Rada Author-X-Name-First: Codrina Author-X-Name-Last: Rada Title: FORMAL AND INFORMAL SECTORS IN CHINA AND INDIA Abstract: This paper discusses the estimation of a social accounting matrix that distinguishes between formal and informal activities for China and India for 2000 and 1998-99 respectively. Wage shares for formal/informal employment in China and net domestic product shares for organized/unorganized sectors in India are used as weights to calculate the size of the two sectors. The proposed methodology is a first step towards an integrated approach to account for the dualism of many economies in the developing world. The results can serve as data input for any policy-driven CGE model for developing countries. Journal: Economic Systems Research Pages: 129-153 Issue: 2 Volume: 22 Year: 2010 Keywords: Informal sector, Social accounting matrix, Comparative economic systems, China, India, X-DOI: 10.1080/09535314.2010.482924 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535314.2010.482924 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:22:y:2010:i:2:p:129-153 Template-Type: ReDIF-Article 1.0 Author-Name: Manfred Lenzen Author-X-Name-First: Manfred Author-X-Name-Last: Lenzen Author-Name: Charlie Benrimoj Author-X-Name-First: Charlie Author-X-Name-Last: Benrimoj Author-Name: Bob Kotic Author-X-Name-First: Bob Author-X-Name-Last: Kotic Title: INPUT-OUTPUT ANALYSIS FOR BUSINESS PLANNING: A CASE STUDY OF THE UNIVERSITY OF SYDNEY Abstract: We present a multi-region input-output (MRIO) model of the University of Sydney embedded in the Australian economy, which forms the centrepiece of a new data-driven framework for strategic forecasting and planning of the University's financial operations. This framework incorporates both Leontief's well-known demand-pull, as well as Ghosh's supply-push exercise. It is therefore able to estimate the immediate financial implications for the University, and the economy-wide flow-on effects, for example as a result of changes in demand for courses by students, or as a result of supply-side changes such as wage increases. We report on recent scenario studies on the financial performance of the teaching and research functions of the University, and the lessons learned for management practice. Journal: Economic Systems Research Pages: 155-179 Issue: 2 Volume: 22 Year: 2010 Keywords: IO enterprise model, Demand-pull, Supply-push, Structural path analysis, University finance, Teaching versus research, X-DOI: 10.1080/09535314.2010.484012 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535314.2010.484012 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:22:y:2010:i:2:p:155-179 Template-Type: ReDIF-Article 1.0 Author-Name: Ayu Washizu Author-X-Name-First: Ayu Author-X-Name-Last: Washizu Author-Name: Satoshi Nakano Author-X-Name-First: Satoshi Author-X-Name-Last: Nakano Title: ON THE ENVIRONMENTAL IMPACT OF CONSUMER LIFESTYLES - USING A JAPANESE ENVIRONMENTAL INPUT-OUTPUT TABLE AND THE LINEAR EXPENDITURE SYSTEM DEMAND FUNCTION Abstract: In this study, we undertake some hypothetical experiments and predict the environmental effects of some changes in consumer behavior, using the Japanese Input-Output Table and the Family Income and Expenditure Survey for 2000. We estimate the demand function in a linear expenditure system (LES) and attempt to determine how changes in consumer behavior affect the environmental load induced by household consumption, using the 'willingness to pay' concept. Furthermore, we define an index to show the eco-efficiency of consumer behavior. Through such a study, we can determine what action is appropriate for a 'sustainable consumption' society. If some change of consumer behavior greatly improved utility while increasing the environmental load, then technological progress to reduce the environmental load must be stimulated. However, if other changes in consumer behavior increase the environmental load while not improving utility very much, then such changes should be strongly discouraged. Journal: Economic Systems Research Pages: 181-192 Issue: 2 Volume: 22 Year: 2010 Keywords: Sustainable consumption, Environmental household account, CO2 emission score, Eco-efficiency, X-DOI: 10.1080/09535314.2010.488218 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535314.2010.488218 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:22:y:2010:i:2:p:181-192 Template-Type: ReDIF-Article 1.0 Author-Name: Paul de Boer Author-X-Name-First: Paul Author-X-Name-Last: de Boer Author-Name: Marco Missaglia Author-X-Name-First: Marco Author-X-Name-Last: Missaglia Title: PREDICTING NEGATIVE EFFECTS OF THE SECOND INTIFADA: AN EX-POST EVALUATION OF SOME MODELS Abstract: In 2003, the World Bank (WB), the International Monetary Fund (IMF) and de Boer and Missaglia (DBM) constructed models for the estimation of the 2002 macro-economic indicators of the economy of Palestine. In 2007, IMF and WB provided the consensus estimates of these figures using data that are more up-to-date and more complete than those available in 2003. This note proposes an ex-post evaluation of the predictive performance of the models of WB, DBM and IMF. A comparison of the models of WB and DBM, which are both micro-founded computable general equilibrium models using the same data, reveals that DBM strongly outperforms WB. We argue that the shortening of the time horizon and the quantity adjustment following the dramatic shock explain why our model performs much better. A comparison of DBM with IMF (a simple macro-founded income-expenditure model) also shows that our model performs better. Journal: Economic Systems Research Pages: 193-199 Issue: 2 Volume: 22 Year: 2010 Keywords: Predictive performance, Macro-economic indicators, Palestine, X-DOI: 10.1080/09535314.2010.484013 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535314.2010.484013 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:22:y:2010:i:2:p:193-199 Template-Type: ReDIF-Article 1.0 Author-Name: Ignazio Mongelli Author-X-Name-First: Ignazio Author-X-Name-Last: Mongelli Author-Name: Frederik Neuwahl Author-X-Name-First: Frederik Author-X-Name-Last: Neuwahl Author-Name: Jose Rueda-Cantuche Author-X-Name-First: Jose Author-X-Name-Last: Rueda-Cantuche Title: INTEGRATING A HOUSEHOLD DEMAND SYSTEM IN THE INPUT-OUTPUT FRAMEWORK. METHODOLOGICAL ASPECTS AND MODELLING IMPLICATIONS Abstract: In this paper we argue that an accurate representation of household consumption behaviour is central to the analysis and comparison of policy interventions addressing sustainable consumption. Therefore, we propose to extend an input-output model with a specific household consumption model, at the core of which is a system of equations explaining the allocation of the households' overall expenditure across different purposes, such as buying food, the consumption of fuel for heating or electricity for cooling, education of children or travelling in terms of total expenditure and relative prices. This paper shows that the integration of a specific module for household consumption in a standard input-output model is an improvement for the analysis of the policies aimed at altering consumer behaviour. Journal: Economic Systems Research Pages: 201-222 Issue: 3 Volume: 22 Year: 2010 Keywords: Sustainable consumption analysis, Econometric input-output model, Household demand system, Consumption technology, Purchasers' versus basic prices, X-DOI: 10.1080/09535314.2010.501428 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535314.2010.501428 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:22:y:2010:i:3:p:201-222 Template-Type: ReDIF-Article 1.0 Author-Name: Jose San Cristobal Author-X-Name-First: Jose Author-X-Name-Last: San Cristobal Title: AN ENVIRONMENTAL/INPUT-OUTPUT LINEAR PROGRAMMING MODEL TO REACH THE TARGETS FOR GREENHOUSE GAS EMISSIONS SET BY THE KYOTO PROTOCOL Abstract: The Kyoto Protocol contains legally binding targets for greenhouse gas (GHG) emissions for industrialized countries. The importance of this agreement and the elaboration of a climate change policy make it necessary to define and establish national policy measures and to bring into force environmental regulations that will reduce GHG emissions. Extending our knowledge of the economic-ecologic relationships that exist within the production sphere can assist in defining and implementing successful environmental policies. In this paper, an Environmental/Input-Output linear programming model is proposed. To develop the model we consider the input-output model as a linear programming problem combining two types of restrictions: environmental restrictions establishing GHG emission targets, and economic restrictions. The model shows how targets for the emissions of GHGs may be reached and can affect production activity composition. Journal: Economic Systems Research Pages: 223-236 Issue: 3 Volume: 22 Year: 2010 Keywords: Greenhouse gases, Kyoto Protocol, Environment, Input-Output, X-DOI: 10.1080/09535314.2010.495709 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535314.2010.495709 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:22:y:2010:i:3:p:223-236 Template-Type: ReDIF-Article 1.0 Author-Name: Wolfgang Koller Author-X-Name-First: Wolfgang Author-X-Name-Last: Koller Author-Name: Robert Stehrer Author-X-Name-First: Robert Author-X-Name-Last: Stehrer Title: TRADE INTEGRATION, OUTSOURCING AND EMPLOYMENT IN AUSTRIA: A DECOMPOSITION APPROACH Abstract: Outsourcing and trade integration of advanced countries is debated with respect to employment effects, in particular for low educated workers - at least in relative terms. We study the employment effects - differentiated by educational attainment levels - of changes in the patterns of trade integration and outsourcing in the Austrian economy over the periods 1995-2000 and 2000-2005 using hierarchical decomposition analysis based on deflated input-output tables. Outsourcing is modeled as changes in the shares of domestically produced intermediates in total intermediates. A similar decomposition of the final demand vector allows us to draw conclusions on the overall employment effects of trade integration. The results suggest that the expected negative employment effects of outsourcing and rising import penetration have been overcompensated by increasing exports. Thus, the overall employment effects of Austrian trade integration have been positive for all educational attainment groups. However, whereas the total effects have been strongest for medium and high educated workers over the period 1995-2000, employment of low educated workers have been strongest and positively affected over the period 2000-2005. This pattern can be explained by a more sluggish export performance together with stronger negative effects of outsourcing and import penetration in medium and high-skill intensive products. Journal: Economic Systems Research Pages: 237-261 Issue: 3 Volume: 22 Year: 2010 Keywords: Outsourcing, Employment, Hierarchical decomposition, Input-output modeling, X-DOI: 10.1080/09535314.2010.493504 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535314.2010.493504 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:22:y:2010:i:3:p:237-261 Template-Type: ReDIF-Article 1.0 Author-Name: Alex Smajgl Author-X-Name-First: Alex Author-X-Name-Last: Smajgl Author-Name: Ludwig Liagre Author-X-Name-First: Ludwig Author-X-Name-Last: Liagre Title: ANALYSING IMPLICATIONS OF LIMITED WATER AVAILABILITY FOR GREAT BARRIER REEF CATCHMENTS Abstract: Dependence on water is one of the factors that can determine regional vulnerability in Australia. Climate change is predicted to change rainfall patterns in the Great Barrier Reef (GBR) region, and scarce water resources have the potential to make regional Queensland economies increasingly vulnerable. Understanding which economic sectors depend on water as an input factor helps in understanding sectoral and regional vulnerability, and thus in guiding regional policy aimed at structural change. Using a regional Queensland Input-Output (IO) model, this paper integrates water consumption of the GBR region and then compares monetary IO multipliers with water consumption multipliers. We argue that these IO multipliers can inform regional decision makers about potential future regional vulnerability by taking into account limited water resources. Journal: Economic Systems Research Pages: 263-277 Issue: 3 Volume: 22 Year: 2010 Keywords: Input-output modelling, Water consumption multipliers, Water resource management, X-DOI: 10.1080/09535314.2010.496447 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535314.2010.496447 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:22:y:2010:i:3:p:263-277 Template-Type: ReDIF-Article 1.0 Author-Name: Fernando Salgueiro Perobelli Author-X-Name-First: Fernando Salgueiro Author-X-Name-Last: Perobelli Author-Name: Eduardo Amaral Haddad Author-X-Name-First: Eduardo Amaral Author-X-Name-Last: Haddad Author-Name: Jaime Bonet Moron Author-X-Name-First: Jaime Bonet Author-X-Name-Last: Moron Author-Name: Geoffrey Hewings Author-X-Name-First: Geoffrey Author-X-Name-Last: Hewings Title: STRUCTURAL INTERDEPENDENCE AMONG COLOMBIAN DEPARTMENTS Abstract: This paper analyzes structural interdependence among Colombian departments. The results show that Bogota has a large influence on the other regional economies through the power of its purchases. Additionally, a center-periphery pattern emerges in the spatial concentration of the effects of the hypothetical extraction of any territory. From a policy point of view, the main findings reaffirm the role played by Bogota in the recent polarization process observed in the regional economies in Colombia. Any policy action oriented to reduce these regional disparities should take into account that, given the structural interdependence among Colombian departments, the effects of new investment in the lagged regions would flow through Bogota and the major regional economies. Journal: Economic Systems Research Pages: 279-300 Issue: 3 Volume: 22 Year: 2010 Keywords: Input-output, Extraction method, Colombia, X-DOI: 10.1080/09535314.2010.510467 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535314.2010.510467 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:22:y:2010:i:3:p:279-300 Template-Type: ReDIF-Article 1.0 Author-Name: Utz-Peter Reich Author-X-Name-First: Utz-Peter Author-X-Name-Last: Reich Title: The National Accounts as a Tool for Analysis and Policy: In View of History, Economic Theory and Data Compilation Issues Abstract: Journal: Economic Systems Research Pages: 301-303 Issue: 3 Volume: 22 Year: 2010 X-DOI: 10.1080/09535314.2010.492776 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535314.2010.492776 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:22:y:2010:i:3:p:301-303 Template-Type: ReDIF-Article 1.0 Author-Name: Bart Los Author-X-Name-First: Bart Author-X-Name-Last: Los Author-Name: Albert Steenge Author-X-Name-First: Albert Author-X-Name-Last: Steenge Title: TOURISM STUDIES AND INPUT-OUTPUT ANALYSIS: INTRODUCTION TO A SPECIAL ISSUE Abstract: Journal: Economic Systems Research Pages: 305-311 Issue: 4 Volume: 22 Year: 2010 X-DOI: 10.1080/09535314.2010.525741 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535314.2010.525741 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:22:y:2010:i:4:p:305-311 Template-Type: ReDIF-Article 1.0 Author-Name: Bjarne Madsen Author-X-Name-First: Bjarne Author-X-Name-Last: Madsen Author-Name: Jie Zhang Author-X-Name-First: Jie Author-X-Name-Last: Zhang Title: TOWARDS A NEW FRAMEWORK FOR ACCOUNTING AND MODELLING THE REGIONAL AND LOCAL IMPACTS OF TOURISM Abstract: We identify four different approaches to estimate the regional and local impacts of tourism based on national accounts and economic modelling: The supply approach, the simple demand or commodity approach, the simple satellite account approach involving tourism satellite accounts based on social accounting, and the extended satellite account approach. Based upon a general interregional quantity model for tourism, empirical evidence on the impacts of tourism on 98 Danish municipalities is presented. We conclude that the four approaches give very different results, both in absolute and in relative terms. Journal: Economic Systems Research Pages: 313-340 Issue: 4 Volume: 22 Year: 2010 Keywords: Tourism satellite accounts, Model evaluation, Regional impacts, Social accounting matrix, Denmark, X-DOI: 10.1080/09535314.2010.529067 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535314.2010.529067 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:22:y:2010:i:4:p:313-340 Template-Type: ReDIF-Article 1.0 Author-Name: Calvin Jones Author-X-Name-First: Calvin Author-X-Name-Last: Jones Author-Name: Max Munday Author-X-Name-First: Max Author-X-Name-Last: Munday Title: TOURISM SATELLITE ACCOUNTS FOR REGIONS? A REVIEW OF DEVELOPMENT ISSUES AND AN ALTERNATIVE Abstract: The extension of the tourism satellite account (TSA) to the regional scale is an opportunity for regional policymakers to undertake consistent and defensible analyses of the tourism economy and its interconnections based upon high-quality and comparable data. However, limitations in the TSA structure will need to be resolved before policy useful analysis can become the rule rather than the exception. The paper reviews the development of TSAs at sub-national levels and goes on to examine their usefulness to policymakers, and how far problems with the framework can be overcome in a practical manner. Journal: Economic Systems Research Pages: 341-358 Issue: 4 Volume: 22 Year: 2010 Keywords: Tourism Satellite Accounts, Sub-national level, Regional tourism economic accounts, X-DOI: 10.1080/09535314.2010.526594 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535314.2010.526594 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:22:y:2010:i:4:p:341-358 Template-Type: ReDIF-Article 1.0 Author-Name: Albert Steenge Author-X-Name-First: Albert Author-X-Name-Last: Steenge Author-Name: Annemieke Van De Steeg Author-X-Name-First: Annemieke Author-X-Name-Last: Van De Steeg Title: TOURISM MULTIPLIERS FOR A SMALL CARIBBEAN ISLAND STATE; THE CASE OF ARUBA Abstract: In this paper, we study the importance of tourism for Aruba, a small Caribbean island state within the Kingdom of The Netherlands. We present an input-output table based on the National Accounts and the Tourism Satellite Account for Aruba, with inbound tourism explicitly included, for the year 1999. Several types of multipliers are discussed. Each multiplier is relevant within a particular framework, but the choice between them is not always obvious. This paper tries to clarify a number of issues in their usage as they present themselves in the context of the study of tourism in Aruba. Journal: Economic Systems Research Pages: 359-384 Issue: 4 Volume: 22 Year: 2010 Keywords: Tourism impacts, Island economy, Tourism Satellite Account, Input-output multipliers, Aruba, X-DOI: 10.1080/09535314.2010.526926 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535314.2010.526926 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:22:y:2010:i:4:p:359-384 Template-Type: ReDIF-Article 1.0 Author-Name: Sarah Cline Author-X-Name-First: Sarah Author-X-Name-Last: Cline Author-Name: Andrew Seidl Author-X-Name-First: Andrew Author-X-Name-Last: Seidl Title: COMBINING NON-MARKET VALUATION AND INPUT-OUTPUT ANALYSIS FOR COMMUNITY TOURISM PLANNING: OPEN SPACE AND WATER QUALITY VALUES IN COLORADO, USA Abstract: We use a combination of non-market valuation and input-output approaches to inform community scale planning for natural-resource based tourism development in rural Colorado. Contingent behavior and trip expenditure information are used in conjunction with IMPLAN input-output software to simulate the likely regional economic effects of changes in local environmental attributes. Visitor surveys reveal sensitivity to the amount of ranch open space and local water quality resulting in discernable regional economic effects should these valuable dimensions of the local environment change. The likely total, direct, indirect, and induced effects and implications on local residents and tourists of a sales tax, mill levy, and hotel occupancy ('bed') tax to preserve ranch open space and maintain local water quality are simulated. The losses offset from maintaining environmental quality are found to significantly outweigh the regional impacts of any of the tax policies. Journal: Economic Systems Research Pages: 385-405 Issue: 4 Volume: 22 Year: 2010 Keywords: Non-market valuation, Input-output analysis, Local environmental change, Tourism planning, X-DOI: 10.1080/09535314.2010.525740 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535314.2010.525740 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:22:y:2010:i:4:p:385-405 Template-Type: ReDIF-Article 1.0 Author-Name: Mara Manente Author-X-Name-First: Mara Author-X-Name-Last: Manente Author-Name: Michele Zanette Author-X-Name-First: Michele Author-X-Name-Last: Zanette Title: MACROECONOMIC EFFECTS OF A VAT REDUCTION IN THE ITALIAN HOTELS & RESTAURANTS INDUSTRY Abstract: The paper tests the effects on the Italian economy of a fiscal measure aimed at lowering the VAT rate from 10% to 5% in the Italian 'Hotels and Restaurants' sector. The analysis focuses first on the impacts in terms of tourism consumption, investments of the sector and public budget. Thereafter, by means of a multiregional-multisectoral input-output model, the increase on the total employment levels by sector and by region has been estimated. Based on a tourism demand elasticity of -1.06 and a supply elasticity of 2.0, tourist nights would increase by a maximum of 3.15% and total tourism consumption by 4.4%, while gross fixed investments by the sector would increase by 2.17%. As for the budget constraint, we have calculated the final 'cost' of the fiscal measure for the Treasury. Concerning the macroeconomic effects in terms of employment, the fiscal measure would produce a total increase of almost 100,000 jobs (expressed in fulltime equivalents). Journal: Economic Systems Research Pages: 407-425 Issue: 4 Volume: 22 Year: 2010 Keywords: Tourism policy, Tax policy, Value Added Tax, Input-output model, X-DOI: 10.1080/09535314.2010.526927 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535314.2010.526927 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:22:y:2010:i:4:p:407-425 Template-Type: ReDIF-Article 1.0 Author-Name: Ya-Yen Sun Author-X-Name-First: Ya-Yen Author-X-Name-Last: Sun Author-Name: Kam-Fai Wong Author-X-Name-First: Kam-Fai Author-X-Name-Last: Wong Title: AN IMPORTANT FACTOR IN JOB ESTIMATION: A NONLINEAR JOBS-TO-SALES RATIO WITH RESPECT TO CAPACITY UTILIZATION Abstract: Many tools for economic impact evaluation, such as input-output models and computable general equilibrium models, rely on the jobs-to-sales ratio (JSR) to convert direct, indirect and induced effects of sales into employment. For service sectors, this ratio is strongly influenced by capacity utilization and exhibits a non-linear pattern, especially for short-term tourism applications that involve dramatic demand fluctuations as a consequence of mega events, natural disasters or societal instability. The purpose of this study is to decompose the relationship between capacity utilization and the JSR so that the underlying factors that cause the instability of JSR can be identified. Time-series data from the Taiwanese tourist hotels and aviation sectors are adopted to discuss the strength of the relations between price per unit and capacity utilization, total employee numbers and utilization, service capacity and utilization, and labor efficiency and utilization, respectively. The results indicate that the adjustment of labor efficiency is the prominent factor in determining the stability of the jobs-to-sales ratio, while price, to employee number and service capacity are relatively stable in response to demand, leading to changing JSRs. Journal: Economic Systems Research Pages: 427-446 Issue: 4 Volume: 22 Year: 2010 Keywords: Capacity utilization, Jobs-to-sales ratio, Accommodation sector, Aviation sector, Input-output analysis, X-DOI: 10.1080/09535314.2010.526595 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535314.2010.526595 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:22:y:2010:i:4:p:427-446 Template-Type: ReDIF-Article 1.0 Author-Name: Viveka Palm Author-X-Name-First: Viveka Author-X-Name-Last: Palm Title: BOOK REVIEW Abstract: Journal: Economic Systems Research Pages: 447-448 Issue: 4 Volume: 22 Year: 2010 X-DOI: 10.1080/09535314.2010.497356 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535314.2010.497356 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:22:y:2010:i:4:p:447-448 Template-Type: ReDIF-Article 1.0 Author-Name: Masako Tsujimura Author-X-Name-First: Masako Author-X-Name-Last: Tsujimura Author-Name: Kazusuke Tsujimura Author-X-Name-First: Kazusuke Author-X-Name-Last: Tsujimura Title: BALANCE SHEET ECONOMICS OF THE SUBPRIME MORTGAGE CRISIS Abstract: As Copeland (1947; 1952) demonstrated with his money-flows accounts more than half a century ago, the balance sheets of economic entities are closely interrelated through a lender-borrower relationship. This paper is an attempt to describe the US subprime mortgage crisis in the framework of 'balance sheet economics', which was originally proposed by Stone (1966) and Klein (1977; 1983). Since it is almost impossible to collect all the balance sheets of economic entities, we use flow-of-funds accounts instead to simulate the negative consequences resulting from home mortgage delinquencies. We show that the pass-through sequence converges when the original delinquency is made up by loss of net worth in any of the economic entities. Most of the eventual loss is incurred by 'Households and Nonprofit Organizations' and 'Rest of the World'. A portion of pass-through loss is eventually incurred by foreign countries with excess external assets, such as Japan, Ireland, etc. Journal: Economic Systems Research Pages: 1-25 Issue: 1 Volume: 23 Year: 2011 Keywords: Flow-of-funds accounts, Leontief inverse, Lender-borrower relationship, X-DOI: 10.1080/09535314.2010.523414 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535314.2010.523414 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:23:y:2011:i:1:p:1-25 Template-Type: ReDIF-Article 1.0 Author-Name: Edgar Hertwich Author-X-Name-First: Edgar Author-X-Name-Last: Hertwich Title: THE LIFE CYCLE ENVIRONMENTAL IMPACTS OF CONSUMPTION Abstract: This paper reviews assessments of environmental impacts arising from consumption, taking into account the production and disposal of goods consumed. Assessments have mostly focused on understanding household consumption, but there is an increasing interest in understanding government consumption, as well as in the treatment of gross capital formation and trade. National economic and environmental accounts are the most frequently used data source for such studies and input-output techniques are usually applied. For many OECD countries and a few developing countries, assessments address only energy or greenhouse gas emissions. Few studies address a broader range of emissions-related environmental impacts. There is a lack of consideration for important pressures on ecosystems such as habitat change and overexploitation of fisheries and forests. In all countries, housing and food are important. In poor countries, public services can contribute substantially, while in rich countries, mobility and the consumption of manufactured goods is important. In rapidly developing economies, investments, especially in infrastructure and buildings, are important causes of environmental pressure as well. Differences in production conditions and pollution intensities across countries are substantial, so explicitly modelling the production of internationally traded goods using multi-regional input-output analysis is necessary to account correctly for the environmental impacts arising from the consumption of imported goods. Journal: Economic Systems Research Pages: 27-47 Issue: 1 Volume: 23 Year: 2011 Keywords: Household environmental impact, Product policy, Environmentally extended input-output analysis, X-DOI: 10.1080/09535314.2010.536905 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535314.2010.536905 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:23:y:2011:i:1:p:27-47 Template-Type: ReDIF-Article 1.0 Author-Name: Nicola Smith Author-X-Name-First: Nicola Author-X-Name-Last: Smith Author-Name: Garry McDonald Author-X-Name-First: Garry Author-X-Name-Last: McDonald Title: ESTIMATION OF SYMMETRIC INPUT-OUTPUT TABLES: AN EXTENSION TO BOHLIN AND WIDELL Abstract: This paper presents two optimisation models for use in the production of symmetric input-output tables (SIOTs) based on data contained within supply-use tables (SUTs). The first model produces commodity-by-commodity SIOTs derived from the selection of appropriate technology assumptions, while the second produces industry-by-industry SIOTs derived through the selection of appropriate sales structure assumptions. Both models address the problem of negative coefficients and also permit the use of rectangular SUTs as base input data. Additionally, this paper explores the development of a 'comprehensive model' enabling production of both commodity-by-commodity and industry-by-industry SIOTs that are conceptually and mathematically consistent. Journal: Economic Systems Research Pages: 49-72 Issue: 1 Volume: 23 Year: 2011 Keywords: Input-output model, Technology assumptions, Sales structure assumptions, Optimisation, X-DOI: 10.1080/09535314.2010.534977 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535314.2010.534977 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:23:y:2011:i:1:p:49-72 Template-Type: ReDIF-Article 1.0 Author-Name: Manfred Lenzen Author-X-Name-First: Manfred Author-X-Name-Last: Lenzen Title: AGGREGATION VERSUS DISAGGREGATION IN INPUT-OUTPUT ANALYSIS OF THE ENVIRONMENT Abstract: Analysts carrying out input-output analyses of environmental issues are often plagued by environmental and input-output data existing in different classifications, with environmentally sensitive sectors sometimes being aggregated in the economic input-output database. In principle there are two alternatives for dealing with such misalignment: either environmental data have to be aggregated into the input-output classification, which entails an undesirable loss of information, or input-output data have to be disaggregated based on fragmentary information. In this article, I show that disaggregation of input-output data, even if based on few real data points, is superior to aggregating environmental data in determining input-output multipliers. This is especially true if the disaggregated sectors are heterogeneous with respect to their economic and environmental characteristics. The results of this work may help analysts in understanding that disaggregation based on even a small amount of proxy information can improve the accuracy of input-output multipliers significantly. Perhaps, these results will also provide encouragement for preferring model disaggregation to aggregation in future work. Journal: Economic Systems Research Pages: 73-89 Issue: 1 Volume: 23 Year: 2011 Keywords: Aggregation, Disaggregation, Environmentally-extended input-output analysis, Stochastic experiments, X-DOI: 10.1080/09535314.2010.548793 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535314.2010.548793 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:23:y:2011:i:1:p:73-89 Template-Type: ReDIF-Article 1.0 Author-Name: Umed Temurshoev Author-X-Name-First: Umed Author-X-Name-Last: Temurshoev Author-Name: Colin Webb Author-X-Name-First: Colin Author-X-Name-Last: Webb Author-Name: Norihiko Yamano Author-X-Name-First: Norihiko Author-X-Name-Last: Yamano Title: PROJECTION OF SUPPLY AND USE TABLES: METHODS AND THEIR EMPIRICAL ASSESSMENT Abstract: We present eight existing projection methods and test their relative performance in estimating Supply and Use tables (SUTs) of the Netherlands and Spain. Some of the methods presented have received little attention in the literature, and some have been slightly revised to better deal with negative elements and preserve the signs of original matrix entries. We find that (G)RAS and the methods proposed by Harthoorn and van Dalen (1987) and Kuroda (1988) produce the best estimates for the data in question. Their relative success also suggests the stability of ratios of larger transactions. Journal: Economic Systems Research Pages: 91-123 Issue: 1 Volume: 23 Year: 2011 Keywords: Supply, Use, Updating techniques, X-DOI: 10.1080/09535314.2010.534978 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535314.2010.534978 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:23:y:2011:i:1:p:91-123 Template-Type: ReDIF-Article 1.0 Author-Name: Ines Costa Author-X-Name-First: Ines Author-X-Name-Last: Costa Title: The Dynamics of Regions and Networks in Industrial Ecosystems Abstract: Journal: Economic Systems Research Pages: 125-129 Issue: 1 Volume: 23 Year: 2011 X-DOI: 10.1080/09535314.2010.524885 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535314.2010.524885 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:23:y:2011:i:1:p:125-129 Template-Type: ReDIF-Article 1.0 Author-Name: Glen Peters Author-X-Name-First: Glen Author-X-Name-Last: Peters Author-Name: Robbie Andrew Author-X-Name-First: Robbie Author-X-Name-Last: Andrew Author-Name: James Lennox Author-X-Name-First: James Author-X-Name-Last: Lennox Title: CONSTRUCTING AN ENVIRONMENTALLY-EXTENDED MULTI-REGIONAL INPUT-OUTPUT TABLE USING THE GTAP DATABASE Abstract: The use of Multi-Regional Input-Output Analysis (MRIOA) for understanding global environmental problems is growing rapidly. Renewed interest in MRIOA has led to several large research projects focused on constructing detailed and accurate MRIOTs. However, very few researchers have made use of the already available and regularly updated database produced by the Global Trade Analysis Project (GTAP). We demonstrate and discuss how the GTAP database can be converted into an MRIOT without the need for additional balancing. An illustrative example uses the GTAP-MRIO to reallocate carbon dioxide emissions from producing to consuming countries. We suggest that an MRIOT that treats international transport exogenously is adequate until more reliable data on international transport margins and emissions are available. To focus resources and refine methods, a concerted research effort is needed to compare the results of the GTAP-MRIO model with the new MRIO datasets under development. Journal: Economic Systems Research Pages: 131-152 Issue: 2 Volume: 23 Year: 2011 Keywords: GTAP, Multi-region input-output analysis, X-DOI: 10.1080/09535314.2011.563234 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535314.2011.563234 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:23:y:2011:i:2:p:131-152 Template-Type: ReDIF-Article 1.0 Author-Name: Stephen Casler Author-X-Name-First: Stephen Author-X-Name-Last: Casler Title: COEFFICIENT CHANGE, PRICE EFFECTS, AND IMPLICIT ELASTICITIES: ESTIMATING MICROECONOMIC DETERMINANTS OVER TWO TIME PERIODS Abstract: This paper presents and estimates an input-output model in which input coefficient changes are functions of changing prices. The model produces results that mirror the characteristics of input demand functions based on the model of cost minimization subject to producing a desired level of output. It does not rely on the specification of a functional form for input coefficients, and it does not require the use of assumptions regarding the elasticity of substitution. Instead, it allows the actual price and coefficient changes that occur between periods to identify the implicit elasticities and own- and cross-price derivatives. Using this model, it is shown how accurate measures of price effects, including the full array of own and cross-elasticities of demand, can be estimated for models comprising up to 15 sectors given data for only two time periods. Journal: Economic Systems Research Pages: 153-174 Issue: 2 Volume: 23 Year: 2011 Keywords: Input-output analysis, Structural decomposition, Input demand, Elasticity, X-DOI: 10.1080/09535314.2011.572869 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535314.2011.572869 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:23:y:2011:i:2:p:153-174 Template-Type: ReDIF-Article 1.0 Author-Name: Richard Wood Author-X-Name-First: Richard Author-X-Name-Last: Wood Title: CONSTRUCTION, STABILITY AND PREDICTABILITY OF AN INPUT-OUTPUT TIME-SERIES FOR AUSTRALIA Abstract: This paper documents the development of a time series of Australian input-output tables. It describes the construction techniques employed in order to overcome the major issues encountered. Environmentally important processes were delineated using a range of detailed commodity data, thus expanding the original tables from roughly 100 industries into a temporally consistent 344 industries. Data confidentiality and inconsistency were overcome using an iterative constrained optimisation method called KRAS - a recent modification of RAS (Lenzen et al. 2006; 2007; 2009). The article concludes by analysing the stability of input-output coefficients over time similar to work in Dietzenbacher and Hoen (2006). The issue of stability of coefficients and multipliers was investigated under the Leontief and Ghosh models of supply/demand. Finally, the predictability of the models was examined under updated final demand or primary inputs and over varying time scales. Journal: Economic Systems Research Pages: 175-211 Issue: 2 Volume: 23 Year: 2011 Keywords: Input-output analysis, Time series, Constrained optimisation, Stability, Predictability, X-DOI: 10.1080/09535314.2011.564156 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535314.2011.564156 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:23:y:2011:i:2:p:175-211 Template-Type: ReDIF-Article 1.0 Author-Name: Kash Barker Author-X-Name-First: Kash Author-X-Name-Last: Barker Author-Name: Claudio Rocco S. Author-X-Name-First: Claudio Author-X-Name-Last: Rocco S. Title: EVALUATING UNCERTAINTY IN RISK-BASED INTERDEPENDENCY MODELING WITH INTERVAL ARITHMETIC Abstract: Several sources of uncertainty exist in the effort to quantify the efficacy of preparedness decision-making in interdependent systems. For the Inoperability Input-Output Model (IIM), a risk-based extension of the traditional Leontief model, which describes the propagation of inoperability throughout interconnected economic sectors, uncertainty is manifested in parameters describing the strength of interdependencies among sectors and in parameters describing the adverse impacts of a disruptive event, among others. As the model is used to evaluate preparedness options to reduce the impact of these disruptive events, such uncertainty can impact decision-making efforts. This paper introduces interval arithmetic as an approach for dealing with uncertainties in the IIM when probability distributions are not known and only variable bounds are available. Illustrative examples highlight the use of the approach as well as a means to improve the evaluation and comparison of risk management strategies in interdependent systems when only intervals are known. Journal: Economic Systems Research Pages: 213-232 Issue: 2 Volume: 23 Year: 2011 Keywords: Inoperability input-output model, Interval arithmetic, Sensitivity, Uncertainty, X-DOI: 10.1080/09535314.2011.572064 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535314.2011.572064 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:23:y:2011:i:2:p:213-232 Template-Type: ReDIF-Article 1.0 Author-Name: Gulay Gunluk-Senesen Author-X-Name-First: Gulay Author-X-Name-Last: Gunluk-Senesen Author-Name: Umit Senesen Author-X-Name-First: Umit Author-X-Name-Last: Senesen Title: DECOMPOSITION OF LABOUR DEMAND BY EMPLOYER SECTORS AND GENDER: FINDINGS FOR MAJOR EXPORTING SECTORS IN TURKEY Abstract: This paper attempts to provide insight into the likely impacts of the current global crisis on employment in Turkey. As this crisis hits the Turkish economy through a demand squeeze in the international market, our focus is on the labour demand generated by major export sectors. The decomposition of impacts with respect to gender is of particular interest given the significant gender imbalances in the labour market. The findings indicate that female (male) employment is most sensitive to wearing apparel (trade) exports. In general, employment generation potentials of major export sectors are found to be weaker for females and stronger in agriculture, trade and finance, while they are very limited in manufacturing for both genders. Journal: Economic Systems Research Pages: 233-253 Issue: 2 Volume: 23 Year: 2011 Keywords: Impact analysis, Gender, Labour demand, Multipliers, X-DOI: 10.1080/09535314.2011.582031 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535314.2011.582031 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:23:y:2011:i:2:p:233-253 Template-Type: ReDIF-Article 1.0 Author-Name: Ferran Sancho Author-X-Name-First: Ferran Author-X-Name-Last: Sancho Title: Designing Public Policies. An Approach Based on Multi-criteria Analysis and Computable General Equilibrium Modeling Abstract: Journal: Economic Systems Research Pages: 255-257 Issue: 2 Volume: 23 Year: 2011 X-DOI: 10.1080/09535314.2010.541229 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535314.2010.541229 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:23:y:2011:i:2:p:255-257 Template-Type: ReDIF-Article 1.0 Author-Name: Christian Lager Author-X-Name-First: Christian Author-X-Name-Last: Lager Title: OBITUARY Abstract: Journal: Economic Systems Research Pages: 259-260 Issue: 2 Volume: 23 Year: 2011 X-DOI: 10.1080/09535314.2011.569534 File-URL: http://www.tandfonline.com/doi/abs/10.1080/09535314.2011.569534 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:23:y:2011:i:2:p:259-260 Template-Type: ReDIF-Article 1.0 Author-Name: Jos� M. Rueda-Cantuche Author-X-Name-First: Jos� M. Author-X-Name-Last: Rueda-Cantuche Title: ECONOMETRIC ANALYSIS OF EUROPEAN CARBON DIOXIDE EMISSIONS BASED ON RECTANGULAR SUPPLY-USE TABLES Abstract: This paper formalises the so-called Supply-Use Based Econometric (SUBE) approach that allows for the introduction of econometric analysis in the calculation of backward input--output multipliers of the Leontief-type quantity model, using rectangular supply and use tables. The SUBE approach does not require any kind of inverse matrix and incorporates the traditional approach (with square supply-use tables) as a particular case. The empirical analysis shows that the SUBE carbon dioxide multipliers for the EU27 are considerably lower than those obtained by the traditional Leontief inverse. In an application of the SUBE approach, the European economy appears to emit about 10% less carbon dioxide than in a situation in which it would not import any intermediate inputs from outside the EU27. Journal: Economic Systems Research Pages: 261-280 Issue: 3 Volume: 23 Year: 2011 Month: 5 X-DOI: 10.1080/09535314.2011.604768 File-URL: http://hdl.handle.net/10.1080/09535314.2011.604768 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:23:y:2011:i:3:p:261-280 Template-Type: ReDIF-Article 1.0 Author-Name: Faye Duchin Author-X-Name-First: Faye Author-X-Name-Last: Duchin Author-Name: Stephen H. Levine Author-X-Name-First: Stephen H. Author-X-Name-Last: Levine Title: SECTORS MAY USE MULTIPLE TECHNOLOGIES SIMULTANEOUSLY: THE RECTANGULAR CHOICE-OF-TECHNOLOGY MODEL WITH BINDING FACTOR CONSTRAINTS Abstract: We develop the rectangular choice-of-technology model with factor constraints, or RCOT, a linear programming input--output model for analysis of the economy of a single region. It allows for one or more sectors to operate more than one technology simultaneously, with the relatively lowest-cost one supplemented by others if it encounters a binding factor constraint. The RCOT model solves for sector outputs, goods prices that are set by the highest-cost technologies in use, and scarcity rents that correspond to binding factor constraints experienced by the lower-cost technologies. The model is motivated by the fact that mineral deposits of different qualities may be exploited simultaneously, as may primary and recycled sources for the same materials or irrigated and rain-fed techniques for producing the same crop. RCOT generalizes Carter's square choice-of-technology model, in particular adding the factor constraints that allow several alternatives to operate simultaneously. The Appendix gives a numerical example. Journal: Economic Systems Research Pages: 281-302 Issue: 3 Volume: 23 Year: 2011 Month: 3 X-DOI: 10.1080/09535314.2011.571238 File-URL: http://hdl.handle.net/10.1080/09535314.2011.571238 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:23:y:2011:i:3:p:281-302 Template-Type: ReDIF-Article 1.0 Author-Name: Asuka Yamakawa Author-X-Name-First: Asuka Author-X-Name-Last: Yamakawa Author-Name: Glen P. Peters Author-X-Name-First: Glen P. Author-X-Name-Last: Peters Title: STRUCTURAL DECOMPOSITION ANALYSIS OF GREENHOUSE GAS EMISSIONS IN NORWAY 1990--2002 Abstract: The goal of this study is twofold: first, to quantify the economic factors driving greenhouse gas emissions in Norway, and second, to assess if random variations in the data affect the results. We use structural decomposition analysis (SDA) with chained constant price input--output tables and environmental extensions. We construct three sets of constant-price data using a smoothing algorithm to remove random variations from the data, and find that the results of the SDA are relatively robust to these variations. The production of exports was responsible for around 70% of the growth in greenhouse gas emissions from 1990 to 2002, household consumption of domestically produced products for about 15%, government 10%, with the remainder due to gross capital formation. The dominance of exports in the emissions growth may make future greenhouse gas mitigation challenging in Norway, particularly considering that the exports are dominated by oil and gas production. Journal: Economic Systems Research Pages: 303-318 Issue: 3 Volume: 23 Year: 2011 Month: 12 X-DOI: 10.1080/09535314.2010.549461 File-URL: http://hdl.handle.net/10.1080/09535314.2010.549461 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:23:y:2011:i:3:p:303-318 Template-Type: ReDIF-Article 1.0 Author-Name: Ana-Isabel Guerra Author-X-Name-First: Ana-Isabel Author-X-Name-Last: Guerra Author-Name: Ferran Sancho Author-X-Name-First: Ferran Author-X-Name-Last: Sancho Title: REVISITING THE ORIGINAL GHOSH MODEL: CAN IT BE MADE MORE PLAUSIBLE? Abstract: We reconsider in this paper the alleged implausibility of Ghosh's model and we do so reformulating the model to incorporate an alternative closure rule. Our proposed closure rule is in line with the original allocation rules defined by A. Ghosh. The closure solves, to some extent, the implausibility problem that was pointed out by Oosterhaven, for then value-added is correctly computed and responsive to allocation changes resulting from supply shocks. Some numerical examples illustrate the sectoral and aggregate consistency of the allocation equilibrium. Journal: Economic Systems Research Pages: 319-328 Issue: 3 Volume: 23 Year: 2011 Month: 2 X-DOI: 10.1080/09535314.2011.566261 File-URL: http://hdl.handle.net/10.1080/09535314.2011.566261 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:23:y:2011:i:3:p:319-328 Template-Type: ReDIF-Article 1.0 Author-Name: Athena Belegri--roboli Author-X-Name-First: Athena Author-X-Name-Last: Belegri--roboli Author-Name: Maria Markaki Author-X-Name-First: Maria Author-X-Name-Last: Markaki Author-Name: Panayotis G. Michaelides Author-X-Name-First: Panayotis G. Author-X-Name-Last: Michaelides Title: LABOUR PRODUCTIVITY CHANGES AND WORKING TIME: THE CASE OF GREECE Abstract: In terms of the annual hours worked per employee, Greece ranks first among EU-15 countries and second among OECD countries. In this context, the austerity measures it adopted (as suggested by the EU and IMF) imply, among other things, a reduction in the over-hours. If such reductions were not to be accompanied by increases in labour productivity, output would be reduced considerably. This paper therefore addresses the question: “What change in sectoral labour productivity levels would have been required to deliver the actual change in final demands in Greece between 1995 and 2005, if working hours in each sector had been reduced to their EU averages?” In this framework, we develop a methodology for calculating labour productivity change by sector of economic activity in an input--output context. Next, we apply it to the Greek economy for the time period 1995--2005, the most recent period for which the required data are available. We find that the required productivity changes are the most substantial for the hotels and restaurants sector, followed by machinery manufacturing and the trade sectors. Journal: Economic Systems Research Pages: 329-339 Issue: 3 Volume: 23 Year: 2011 Month: 6 X-DOI: 10.1080/09535314.2011.595777 File-URL: http://hdl.handle.net/10.1080/09535314.2011.595777 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:23:y:2011:i:3:p:329-339 Template-Type: ReDIF-Article 1.0 Author-Name: Peter L. Daniels Author-X-Name-First: Peter L. Author-X-Name-Last: Daniels Author-Name: Manfred Lenzen Author-X-Name-First: Manfred Author-X-Name-Last: Lenzen Author-Name: Steven J. Kenway Author-X-Name-First: Steven J. Author-X-Name-Last: Kenway Title: THE INS AND OUTS OF WATER USE -- A REVIEW OF MULTI-REGION INPUT--OUTPUT ANALYSIS AND WATER FOOTPRINTS FOR REGIONAL SUSTAINABILITY ANALYSIS AND POLICY Abstract: This paper reviews current knowledge about water footprints (WFs) and the role of input--output techniques. We first provide an overview of the prevailing ‘bottom-up’, process-based methods and their strengths and limitations. This overview leads to discussion of the benefits of combining process-based water footprints with information from input--output techniques. The central theme and proposition is that environmental multi-region input--output analysis (E-MRIO) has a powerful capacity to establish the geography of embodied water, and to complement process-based approaches to WF by expanding their supply-chain coverage. Combining process and input--output information provides valuable information for a diverse set of water planning and water policy objectives. A comprehensive and systematic outline of potential policy applications of E-MRIO (and process analysis methods) is presented. Journal: Economic Systems Research Pages: 353-370 Issue: 4 Volume: 23 Year: 2011 Month: 10 X-DOI: 10.1080/09535314.2011.633500 File-URL: http://hdl.handle.net/10.1080/09535314.2011.633500 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:23:y:2011:i:4:p:353-370 Template-Type: ReDIF-Article 1.0 Author-Name: Carlos López-Morales Author-X-Name-First: Carlos Author-X-Name-Last: López-Morales Author-Name: Faye Duchin Author-X-Name-First: Faye Author-X-Name-Last: Duchin Title: POLICIES AND TECHNOLOGIES FOR A SUSTAINABLE USE OF WATER IN MEXICO: A SCENARIO ANALYSIS Abstract: Water stress in Mexico is intimately linked to agriculture, as irrigation claims 75% of national water withdrawals. The Mexican mix of irrigation technologies is dominated by flood techniques, utilized on 93% of irrigated land, while drip and sprinkler systems, both with higher application efficiencies, are utilized on only 7% of irrigated land. This paper examines the extent to which government policies can induce the adoption of alternative irrigation technologies to promote a sustainable pattern of water withdrawals. The framework is an inter-regional input--output model formulated as a linear program that solves for cost-minimizing allocations of output that are constrained by regional factor availability. The model features endogenous choice among alternative agricultural technologies and determines commodity prices based on factor costs and on scarcity rents for limiting factors of production. The study defines and quantifies sustainable endowments of water at the regional level and analyzes scenarios that combine fees or caps on water withdrawals with the availability of alternative irrigation technologies. We find that water policies can induce technology adoption to achieve water sustainability, although the national price of agricultural output rises 5% to 8% relative to baseline levels. Furthermore, pricing water for irrigation can generate enough public revenue for the government to cover the full costs of technology adoption. Journal: Economic Systems Research Pages: 387-407 Issue: 4 Volume: 23 Year: 2011 Month: 9 X-DOI: 10.1080/09535314.2011.635138 File-URL: http://hdl.handle.net/10.1080/09535314.2011.635138 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:23:y:2011:i:4:p:387-407 Template-Type: ReDIF-Article 1.0 Author-Name: Ignacio Cazcarro Author-X-Name-First: Ignacio Author-X-Name-Last: Cazcarro Author-Name: Rosa Duarte Author-X-Name-First: Rosa Author-X-Name-Last: Duarte Author-Name: Julio Sanchez Choliz Author-X-Name-First: Julio Sanchez Author-X-Name-Last: Choliz Author-Name: Cristina Sarasa Author-X-Name-First: Cristina Author-X-Name-Last: Sarasa Title: WATER RATES AND THE RESPONSIBILITIES OF DIRECT, INDIRECT AND END-USERS IN SPAIN Abstract: Irrigation is the main user of water in Spain, and the price paid for this resource has long been lower than its cost. The recent EU Water Framework Directive requires that all costs be recovered, but application has had perverse effects. In some cases, farms have become economically unviable, while in others, cultivation has intensified and water consumption has increased. This paper applies a slightly modified version of the computable general equilibrium model developed by the International Food Policy Research Institute (Lofgren et al., 2002), to a SAM (Social Accounting Matrix) of the province of Huesca in north-eastern Spain. The model disaggregates the agricultural sectors into irrigated and unirrigated farming, taking into account the improvements in irrigation efficiency. Within this framework, we analyse different payment scenarios affecting direct users, exporters and end-users in order to examine user responsibilities, the impact of international markets and macroeconomic effects on agriculture and industry in Spain. Journal: Economic Systems Research Pages: 409-430 Issue: 4 Volume: 23 Year: 2011 Month: 8 X-DOI: 10.1080/09535314.2011.611794 File-URL: http://hdl.handle.net/10.1080/09535314.2011.611794 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:23:y:2011:i:4:p:409-430 Template-Type: ReDIF-Article 1.0 Author-Name: Zhuoying Zhang Author-X-Name-First: Zhuoying Author-X-Name-Last: Zhang Author-Name: Minjun Shi Author-X-Name-First: Minjun Author-X-Name-Last: Shi Author-Name: Hong Yang Author-X-Name-First: Hong Author-X-Name-Last: Yang Author-Name: Ashok Chapagain Author-X-Name-First: Ashok Author-X-Name-Last: Chapagain Title: AN INPUT--OUTPUT ANALYSIS OF TRENDS IN VIRTUAL WATER TRADE AND THE IMPACT ON WATER RESOURCES AND USES IN CHINA Abstract: This study investigates the impacts of China's international trade on its water resources and uses between 2002 and 2007. The results show a significant increase in water use efficiency in most sectors, especially the manufacturing sectors. However, the total net virtual water exported increased by about 75%, from 39.0 × 10-super-9 m-super-3 to 68.2 × 10-super-9 m-super-3. The ratio of net virtual water exports to the total water resources of the country increased from 1.8% to 3.1%. In water-scarce North China, the ratio increased from 3.6% to 5.1%, which indicates a growing water resources pressure. The share of the net virtual water exports in the total water use in China increased from 7% to 12%. The results suggest that China's economic gains from intensifying international trade came with high costs regarding its water resources. Journal: Economic Systems Research Pages: 431-446 Issue: 4 Volume: 23 Year: 2011 Month: 10 X-DOI: 10.1080/09535314.2011.636733 File-URL: http://hdl.handle.net/10.1080/09535314.2011.636733 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:23:y:2011:i:4:p:431-446 Template-Type: ReDIF-Article 1.0 Author-Name: Manfred Lenzen Author-X-Name-First: Manfred Author-X-Name-Last: Lenzen Author-Name: Bart Los Author-X-Name-First: Bart Author-X-Name-Last: Los Title: EDITORS' REPORT Journal: Economic Systems Research Pages: 447-448 Issue: 4 Volume: 23 Year: 2011 Month: 12 X-DOI: 10.1080/09535314.2011.634677 File-URL: http://hdl.handle.net/10.1080/09535314.2011.634677 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:23:y:2011:i:4:p:447-448 Template-Type: ReDIF-Article 1.0 Author-Name: Jan Oosterhaven Author-X-Name-First: Jan Author-X-Name-Last: Oosterhaven Title: ADDING SUPPLY-DRIVEN CONSUMPTION MAKES THE GHOSH MODEL EVEN MORE IMPLAUSIBLE Abstract: Guerra and Sancho (2011) argue that adding a supply-driven consumption function to the Ghosh model diminishes its implausibility in the case of centrally planned economies. Extending the Leontief model with a demand-driven consumption function does make that model more realistic. Extending the Ghosh model, however, makes it even more implausible in the case of a market economy, while it becomes even more problematic as a guide for a centrally planned economy. The prime reason is that complementarities between inputs are negated, not only for firms, but now also for households. Consequently, industry and aggregate output may now increase, while corresponding value added decreases, and vice versa. Journal: Economic Systems Research Pages: 101-111 Issue: 1 Volume: 24 Year: 2012 Month: 10 X-DOI: 10.1080/09535314.2011.635137 File-URL: http://hdl.handle.net/10.1080/09535314.2011.635137 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:24:y:2012:i:1:p:101-111 Template-Type: ReDIF-Article 1.0 Author-Name: Karen Turner Author-X-Name-First: Karen Author-X-Name-Last: Turner Author-Name: Soo Jung Ha Author-X-Name-First: Soo Jung Author-X-Name-Last: Ha Author-Name: Geoffrey J.D. Hewings Author-X-Name-First: Geoffrey J.D. Author-X-Name-Last: Hewings Author-Name: Peter Mcgregor Author-X-Name-First: Peter Author-X-Name-Last: Mcgregor Author-Name: Kim Swales Author-X-Name-First: Kim Author-X-Name-Last: Swales Title: ECONOMETRIC ESTIMATION OF ARMINGTON IMPORT ELASTICITIES FOR A REGIONAL CGE MODEL OF THE ILLINOIS ECONOMY Abstract: One of the main concerns associated with the development and use of regional CGE models is the determination of key parameter values, particularly substitution and other price elasticities. A common problem is the lack of appropriate regional data for econometric estimation. Consequently, it is important to identify key parameters that are likely to be important in determining quantitative results and then to prioritize these for estimation where appropriate data are available. In this paper, the focus is on the estimation of the regional trade (import) substitution parameters, which tend to be important in analysis for regional economies (given their openness to trade). Here, commodity import elasticities for the Illinois economy are estimated and tested in a single region CGE model of the Illinois economy. In our econometric estimation, we apply a model that takes account of market size and distance in estimating the substitutability between commodities produced in Illinois and other US states. Journal: Economic Systems Research Pages: 1-19 Issue: 1 Volume: 24 Year: 2012 Month: 4 X-DOI: 10.1080/09535314.2011.645800 File-URL: http://hdl.handle.net/10.1080/09535314.2011.645800 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:24:y:2012:i:1:p:1-19 Template-Type: ReDIF-Article 1.0 Author-Name: Manuel Alejandro Cardenete Author-X-Name-First: Manuel Alejandro Author-X-Name-Last: Cardenete Author-Name: Ferran Sancho Author-X-Name-First: Ferran Author-X-Name-Last: Sancho Title: THE ROLE OF SUPPLY CONSTRAINTS IN MULTIPLIER ANALYSIS Abstract: Multiplier analysis based upon the information contained in Leontief's inverse is undoubtedly part of the core of the input--output methodology and numerous applications and extensions have been developed that exploit its informational content, both at the national and regional levels. Nonetheless there are some implicit theoretical assumptions whose policy implications need to be assessed. This is the case for the ‘excess capacity’ assumption, which implies that resources are available as needed to adjust production to new equilibrium states. In an actual economy, however, new resources are often scarce and always costly. When supply constraints intervene, the assessment of the effects of government demand policies may be substantially different from that of the standard Leontief multiplier matrix. Using a closed general equilibrium model that incorporates supply constraints, we perform some simple numerical exercises and proceed to derive two ‘constrained’ multiplier matrices, based upon the implicit Jacobian matrix, that can be compared with the standard ‘unconstrained’ Leontief matrix. Journal: Economic Systems Research Pages: 21-34 Issue: 1 Volume: 24 Year: 2012 Month: 6 X-DOI: 10.1080/09535314.2011.615824 File-URL: http://hdl.handle.net/10.1080/09535314.2011.615824 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:24:y:2012:i:1:p:21-34 Template-Type: ReDIF-Article 1.0 Author-Name: Agnieszka Gehringer Author-X-Name-First: Agnieszka Author-X-Name-Last: Gehringer Title: A NEW SECTORAL TAXONOMY BASED ON PECUNIARY KNOWLEDGE EXTERNALITIES: KNOWLEDGE INTERACTIONS IN A VERTICALLY INTEGRATED SYSTEM Abstract: The paper presents a new sectoral taxonomy that focuses on the existence of non-negligible external effects that derive from user--producer knowledge interactions. These are coupled with intermediate goods transactions, in a system of vertically integrated manufacturing and services sectors. These externalities, the so-called pecuniary knowledge externalities, are the main source of changing technological conditions experienced by downstream producers. A distinguishing feature of the taxonomy lies in its derivation from a particularly dynamic context of changing production functions. The taxonomy is empirically derived, examining effects generated by technological knowledge in a system of intermediate goods transactions and taking into account peculiar characteristics of sectors in European economies. The results allow for a classification of sectors in five groups. An analysis of these classes confirms previous evidence that technological characteristics of sectors across classes differ. Journal: Economic Systems Research Pages: 35-55 Issue: 1 Volume: 24 Year: 2012 Month: 12 X-DOI: 10.1080/09535314.2011.646959 File-URL: http://hdl.handle.net/10.1080/09535314.2011.646959 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:24:y:2012:i:1:p:35-55 Template-Type: ReDIF-Article 1.0 Author-Name: Dimitrios Hristu-Varsakelis Author-X-Name-First: Dimitrios Author-X-Name-Last: Hristu-Varsakelis Author-Name: Stella Karagianni Author-X-Name-First: Stella Author-X-Name-Last: Karagianni Author-Name: Maria Pempetzoglou Author-X-Name-First: Maria Author-X-Name-Last: Pempetzoglou Author-Name: Athanasios Sfetsos Author-X-Name-First: Athanasios Author-X-Name-Last: Sfetsos Title: OPTIMIZING PRODUCTION IN THE GREEK ECONOMY: EXPLORING THE INTERACTION BETWEEN GREENHOUSE GAS EMISSIONS AND SOLID WASTE VIA INPUT--OUTPUT ANALYSIS Abstract: We explore an input--output based framework for optimizing production in the Greek economy, under constraints relating to energy use, final demand, greenhouse gas emissions and solid waste. Using empirical data, we consider the effects on the maximum attainable gross value of production when imposing various pollution abatement targets. Our results quantify those effects as well as the magnitude of economic sacrifices required to achieve environmental goals, in a series of policy scenarios of practical importance. Because air pollution and solid waste are not produced independently of one another, we identify the settings in which it is meaningful to institute a separate policy for mitigating each pollutant, versus those in which only one pollutant needs to be actively addressed. The scenarios considered here represent a range of options that could be available to policy makers, depending on the country's international commitments and the effects on economic and environmental variables. Journal: Economic Systems Research Pages: 57-75 Issue: 1 Volume: 24 Year: 2012 Month: 3 X-DOI: 10.1080/09535314.2011.572065 File-URL: http://hdl.handle.net/10.1080/09535314.2011.572065 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:24:y:2012:i:1:p:57-75 Template-Type: ReDIF-Article 1.0 Author-Name: Barun Deb Pal Author-X-Name-First: Barun Author-X-Name-Last: Deb Pal Author-Name: Sanjib Pohit Author-X-Name-First: Sanjib Author-X-Name-Last: Pohit Author-Name: Joyashree Roy Author-X-Name-First: Joyashree Author-X-Name-Last: Roy Title: SOCIAL ACCOUNTING MATRIX FOR INDIA Abstract: This paper provides the latest Social Accounting Matrix (SAM) of the year 2003--2004 for the Indian economy with a wide variety of disaggregation for the Energy sector and the sectors that are relevant for environmental and climate policy evaluation. This SAM shows the interaction between production, income, consumption and capital accumulation. It can be used to provide an analysis of the interrelationship between the production structure of an economy and the distribution of incomes and expenditures of different household groups. In addition, it can be used for multiplier analysis to capture direct, indirect and induced impact on input use due to any exogenous changes in the economy. This SAM consists of 85 sectors of the economy, three factors of production and nine categories of occupational households. The Indian economy is becoming structurally biased towards capital intensive sectors, such as service and energy production. The energy production sector itself is the most energy intensive sector as of 2003--2004. Journal: Economic Systems Research Pages: 77-99 Issue: 1 Volume: 24 Year: 2012 Month: 8 X-DOI: 10.1080/09535314.2011.618824 File-URL: http://hdl.handle.net/10.1080/09535314.2011.618824 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:24:y:2012:i:1:p:77-99 Template-Type: ReDIF-Article 1.0 Author-Name: Kirsten S. Wiebe Author-X-Name-First: Kirsten S. Author-X-Name-Last: Wiebe Author-Name: Martin Bruckner Author-X-Name-First: Martin Author-X-Name-Last: Bruckner Author-Name: Stefan Giljum Author-X-Name-First: Stefan Author-X-Name-Last: Giljum Author-Name: Christian Lutz Author-X-Name-First: Christian Author-X-Name-Last: Lutz Title: CALCULATING ENERGY-RELATED CO2 EMISSIONS EMBODIED IN INTERNATIONAL TRADE USING A GLOBAL INPUT--OUTPUT MODEL Abstract: The Global Resource Accounting Model (GRAM) is an environmentally-extended multi-regional input--output model, covering 48 sectors in 53 countries and two regions. Next to CO2 emissions, GRAM also includes different resource categories. Using GRAM, we are able to estimate the amount of carbon emissions embodied in international trade for each year between 1995 and 2005. These results include all origins and destinations of emissions, so that emissions can be allocated to countries consuming the products that embody these emissions. Net-CO2 imports of OECD countries increased by 80% between 1995 and 2005. These findings become particularly relevant, as the externalisation of environmental burden through international trade might be an effective strategy for industrialised countries to maintain high environmental quality within their own borders, while externalising the negative environmental consequences of their consumption processes to other parts of the world. This paper focuses on the methodological aspects and data requirements of the model, and shows results for selected countries and aggregated regions. Journal: Economic Systems Research Pages: 113-139 Issue: 2 Volume: 24 Year: 2012 Month: 11 X-DOI: 10.1080/09535314.2011.643293 File-URL: http://hdl.handle.net/10.1080/09535314.2011.643293 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:24:y:2012:i:2:p:113-139 Template-Type: ReDIF-Article 1.0 Author-Name: Harry C. Wilting Author-X-Name-First: Harry C. Author-X-Name-Last: Wilting Title: SENSITIVITY AND UNCERTAINTY ANALYSIS IN MRIO MODELLING; SOME EMPIRICAL RESULTS WITH REGARD TO THE DUTCH CARBON FOOTPRINT Abstract: Environmental multi-regional input--output (MRIO) models require large amounts of data that all have their specific uncertainties. This paper presents a sensitivity and uncertainty analysis in order to gain an understanding of the directions in which efforts should be made to reduce these uncertainties. The analyses were carried out for an MRIO model to calculate the Dutch carbon footprint. A sensitivity analysis of the technical coefficients showed that changes in the coefficients in the domestic blocks and in the Dutch import blocks had the largest effects on the calculated footprint. The uncertainty analysis consisting of a Monte Carlo simulation based on probability distributions around the model coefficients showed a relatively low degree of uncertainty in the total Dutch carbon footprint; uncertainties in the carbon emissions allocated to regions, sectors and products were larger. Both analyses showed that, in certain cases, it is justified to apply a partial MRIO analysis. Journal: Economic Systems Research Pages: 141-171 Issue: 2 Volume: 24 Year: 2012 Month: 9 X-DOI: 10.1080/09535314.2011.628302 File-URL: http://hdl.handle.net/10.1080/09535314.2011.628302 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:24:y:2012:i:2:p:141-171 Template-Type: ReDIF-Article 1.0 Author-Name: Ana L.M. Sargento Author-X-Name-First: Ana L.M. Author-X-Name-Last: Sargento Author-Name: Pedro Nogueira Ramos Author-X-Name-First: Pedro Nogueira Author-X-Name-Last: Ramos Author-Name: Geoffrey J.D. Hewings Author-X-Name-First: Geoffrey J.D. Author-X-Name-Last: Hewings Title: INTER-REGIONAL TRADE FLOW ESTIMATION THROUGH NON-SURVEY MODELS: AN EMPIRICAL ASSESSMENT Abstract: Inter-regional trade estimation has been pointed out as a crucial problem when constructing a multiregional input--output system. Knowledge of inter-regional trade flows, at least of the pooled volume of exports and imports by commodity, is critical in accounting for important spillover and feedback effects deriving from inter-regional linkages. However, in most countries, there are no completely reliable survey-based statistics on inter-regional trade. Thus, this paper intends to evaluate the reasonability of using indirect inter-regional trade estimates, comparing different estimating methods and assessing the sensitivity of the model results. Based on our empirical comparisons we conclude that input--output models are not greatly affected by the insertion of different trade values. Thus, our results support the use of indirect estimates for inter-regional trade, whenever survey-based data are unavailable. Journal: Economic Systems Research Pages: 173-193 Issue: 2 Volume: 24 Year: 2012 Month: 3 X-DOI: 10.1080/09535314.2011.574609 File-URL: http://hdl.handle.net/10.1080/09535314.2011.574609 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:24:y:2012:i:2:p:173-193 Template-Type: ReDIF-Article 1.0 Author-Name: Danny Leung Author-X-Name-First: Danny Author-X-Name-Last: Leung Author-Name: Oana Secrieru Author-X-Name-First: Oana Author-X-Name-Last: Secrieru Title: REAL-FINANCIAL LINKAGES IN THE CANADIAN ECONOMY: AN INPUT--OUTPUT APPROACH Abstract: The recent financial crisis highlighted the importance of better understanding the interaction between macroeconomic and financial conditions. In this paper, we provide a financial social accounting matrix for the Canadian economy and use it to assess the strength of real-financial linkages by calculating and comparing multipliers with and without endogenous financial flows. It is found that taking into account financial flows increases the impact of a final demand shock on output by 4--11%. Moreover, between 2008 and 2009H1, the investment decisions of financial institutions together with the fact that non-financial institutions were unwilling or unable to increase their financial liabilities led to estimated declines in all GDP multipliers. The impact of a final demand shock on GDP declined 3--5%, while the impact of an increase in the availability of investment funds fell 30% and 55% for financial and non-financial corporations, respectively.† -super-†The views expressed in this paper are those of the authors. No responsibility for them should be attributed to Statistics Canada. Journal: Economic Systems Research Pages: 195-223 Issue: 2 Volume: 24 Year: 2012 Month: 9 X-DOI: 10.1080/09535314.2012.684345 File-URL: http://hdl.handle.net/10.1080/09535314.2012.684345 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:24:y:2012:i:2:p:195-223 Template-Type: ReDIF-Article 1.0 Author-Name: Shigemi Kagawa Author-X-Name-First: Shigemi Author-X-Name-Last: Kagawa Title: The Sustainability Practitioner's Guide to Input--Output Analysis Journal: Economic Systems Research Pages: 225-227 Issue: 2 Volume: 24 Year: 2012 Month: 6 X-DOI: 10.1080/09535314.2011.590126 File-URL: http://hdl.handle.net/10.1080/09535314.2011.590126 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:24:y:2012:i:2:p:225-227 Template-Type: ReDIF-Article 1.0 Author-Name: Kazuo Ogawa Author-X-Name-First: Kazuo Author-X-Name-Last: Ogawa Author-Name: Elmer Sterken Author-X-Name-First: Elmer Author-X-Name-Last: Sterken Author-Name: Ichiro Tokutsu Author-X-Name-First: Ichiro Author-X-Name-Last: Tokutsu Title: FINANCIAL DISTRESS AND INDUSTRY STRUCTURE: AN INTER-INDUSTRY APPROACH TO THE LOST DECADE IN JAPAN Abstract: This paper proposes a novel approach to investigating the propagation mechanism of balance sheet deterioration in financial institutions and firms, by extending the input--output analysis. First, we use a unique input--output table augmented by firm size dimension. Second, we link the input--output table with the balance sheet conditions of financial institutions and firms. Based on Japanese input--output tables, we find that the lending attitude of financial institutions affected firms’ input decision in the late 1990s and the early 2000s. Simulation exercises are conducted to evaluate the effects of changes in the lending attitude toward small firms as favorable as that toward large firms on sectoral allocations. We find that output was increased for small firms and reduced for large firms. The change in output was non-negligible, about 5.5% of the initial output of each sector. In particular, it exceeded 20% in textile, iron and steel and fabricated metal products. Journal: Economic Systems Research Pages: 229-249 Issue: 3 Volume: 24 Year: 2012 Month: 4 X-DOI: 10.1080/09535314.2012.687712 File-URL: http://hdl.handle.net/10.1080/09535314.2012.687712 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:24:y:2012:i:3:p:229-249 Template-Type: ReDIF-Article 1.0 Author-Name: Graham Pyatt Author-X-Name-First: Graham Author-X-Name-Last: Pyatt Author-Name: Jeffery I. Round Author-X-Name-First: Jeffery I. Author-X-Name-Last: Round Title: DISTRIBUTIONAL INVARIANCE AND THE DESIGN OF SAMS Abstract: The decomposition of a matrix multiplier derived from a social accounting matrix (SAM) by Pyatt and Round [(1979). Accounting and Fixed Price Multipliers in a Social Accounting Matrix Framework. Economic Journal, 89, 850--873] has prompted a number of subsequent applications. In one of the earliest examples Stone [(1985). The Disaggregation of the Household Sector in the National Accounts, Chapter 8. In: G. Pyatt and J.I. Round (eds.) Social Accounting Matrices: A Basis for Planning. Washington, DC, The World Bank, 145--185] made the intriguing observation that the higher order (circular) effects of an exogenous change in final demand on the distribution of income and the structure of production were more or less independent of the sectoral composition of the initial injection. Our initial objective in this article is to explore this phenomenon of distributional invariance and to derive sufficient conditions for it. We then argue that these conditions have important implications for the design of SAMs, for the taxonomies they adopt and for levels of disaggregation, all of which strongly condition the quality of results that can be generated via subsequent modelling. Journal: Economic Systems Research Pages: 251-273 Issue: 3 Volume: 24 Year: 2012 Month: 2 X-DOI: 10.1080/09535314.2012.665359 File-URL: http://hdl.handle.net/10.1080/09535314.2012.665359 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:24:y:2012:i:3:p:251-273 Template-Type: ReDIF-Article 1.0 Author-Name: Jiansuo Pei Author-X-Name-First: Jiansuo Author-X-Name-Last: Pei Author-Name: Jan Oosterhaven Author-X-Name-First: Jan Author-X-Name-Last: Oosterhaven Author-Name: Erik Dietzenbacher Author-X-Name-First: Erik Author-X-Name-Last: Dietzenbacher Title: HOW MUCH DO EXPORTS CONTRIBUTE TO CHINA'S INCOME GROWTH? Abstract: It is a widespread belief that exports, in particular of ‘high-tech’ products, contribute much to China's income growth. This study addresses this issue by applying a structural decomposition analysis to input--output (I--O) data. We employ two extended I--O tables that distinguish processing trade from ordinary exports. The contribution of exports to the value-added growth from 2002 to 2007 is found to be overestimated by 32% when standard I--O tables are used rather than the extended I--O tables. Even more strikingly, the value-added growth that may be attributed to the exports of ‘high-tech’ telecommunication products is overestimated by no less than 63%. A serious overestimation of the contribution to income growth of certain products (such as high-tech products) sends out misleading signals to policymakers. When measured correctly, the true contribution appears to be substantially smaller than is generally believed to be. Journal: Economic Systems Research Pages: 275-297 Issue: 3 Volume: 24 Year: 2012 Month: 1 X-DOI: 10.1080/09535314.2012.660746 File-URL: http://hdl.handle.net/10.1080/09535314.2012.660746 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:24:y:2012:i:3:p:275-297 Template-Type: ReDIF-Article 1.0 Author-Name: Bin Su Author-X-Name-First: Bin Author-X-Name-Last: Su Author-Name: B. W. Ang Author-X-Name-First: B. W. Author-X-Name-Last: Ang Title: STRUCTURAL DECOMPOSITION ANALYSIS APPLIED TO ENERGY AND EMISSIONS: AGGREGATION ISSUES Abstract: With the introduction of the environmentally extended input--output (I--O) framework, traditional economic I--O modeling and analysis can be conveniently adopted in energy and emission studies. Based on such an extended framework, many empirical studies investigating the driving forces of energy consumption and emission changes using structural decomposition analysis have been reported. Three aggregation issues are inherent in such decomposition studies, namely sector aggregation, spatial aggregation and temporal aggregation. This study, as an extension of our previous work on the first two issues, focuses on the third or temporal aggregation. An empirical study using the emission data of China from 1997 to 2007 is presented to illustrate the problems involved. How to deal with temporal aggregation and its possible interactions with the other two aggregations is also discussed. Journal: Economic Systems Research Pages: 299-317 Issue: 3 Volume: 24 Year: 2012 Month: 3 X-DOI: 10.1080/09535314.2012.677997 File-URL: http://hdl.handle.net/10.1080/09535314.2012.677997 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:24:y:2012:i:3:p:299-317 Template-Type: ReDIF-Article 1.0 Author-Name: Brugt Kazemier Author-X-Name-First: Brugt Author-X-Name-Last: Kazemier Author-Name: Carlo H. Driesen Author-X-Name-First: Carlo H. Author-X-Name-Last: Driesen Author-Name: Erik Hoogbruin Author-X-Name-First: Erik Author-X-Name-Last: Hoogbruin Title: FROM INPUT--OUTPUT TABLES TO SUPPLY-AND-USE TABLES Abstract: In 1991, Statistics Netherlands introduced the supply-and-use tables as part of the national accounts. Since then, the supply-and-use tables have been the main statistics on the production structure of the Dutch economy. They form the basis from which input--output tables are derived. The time series of supply-and-use tables starts in 1987. However, there is a need for a time series since 1970 because benchmark revisions of the Dutch national accounts would become far easier if such time series were available. Therefore, a method has been developed to derive supply-and-use tables from existing input--output tables. This article presents the algorithm. Journal: Economic Systems Research Pages: 319-327 Issue: 3 Volume: 24 Year: 2012 Month: 12 X-DOI: 10.1080/09535314.2011.650627 File-URL: http://hdl.handle.net/10.1080/09535314.2011.650627 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:24:y:2012:i:3:p:319-327 Template-Type: ReDIF-Article 1.0 Author-Name: Sören Lindner Author-X-Name-First: Sören Author-X-Name-Last: Lindner Author-Name: Julien Legault Author-X-Name-First: Julien Author-X-Name-Last: Legault Author-Name: Dabo Guan Author-X-Name-First: Dabo Author-X-Name-Last: Guan Title: DISAGGREGATING INPUT--OUTPUT MODELS WITH INCOMPLETE INFORMATION Abstract: Disaggregating a sector within the Leontief input--output (IO) framework is not a straightforward task since there is more than one possibility for the unknown technical coefficients of the disaggregated IO table, and more information than what is embodied in the aggregated IO table is thus required. This paper presents a methodology for disaggregating sectors into an arbitrary number of new sectors when the only available information about the newly formed sectors is their output weights. A random walk algorithm is used to explore the polytope containing the admissible combinations for the unknown technical coefficients of the disaggregated IO table. These combinations are then used to construct the probability distribution of the coefficients of the inverse Leontief matrix. The methodology is illustrated by disaggregating the electricity production sector of China's 2007 IO table and by looking at the probability distribution of the CO2 emission intensity factors of the sectors of the economy. Journal: Economic Systems Research Pages: 329-347 Issue: 4 Volume: 24 Year: 2012 Month: 4 X-DOI: 10.1080/09535314.2012.689954 File-URL: http://hdl.handle.net/10.1080/09535314.2012.689954 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:24:y:2012:i:4:p:329-347 Template-Type: ReDIF-Article 1.0 Author-Name: Francisco J. Andr� Author-X-Name-First: Francisco J. Author-X-Name-Last: Andr� Author-Name: M. Alejandro Cardenete Author-X-Name-First: M. Alejandro Author-X-Name-Last: Cardenete Author-Name: M. Carmen Lima Author-X-Name-First: M. Carmen Author-X-Name-Last: Lima Title: USING A CGE MODEL TO IDENTIFY THE POLICY TRADE-OFF BETWEEN UNEMPLOYMENT AND INFLATION. THE EFFICIENT PHILLIPS CURVE Abstract: This paper provides a new reading of a classical economic relation: the short-run Phillips curve. Our point is that, when dealing with inflation and unemployment, policy-making can be understood as a multicriteria decision-making problem. Hence, we use so-called multiobjective programming in connection with a computable general equilibrium (CGE) model to determine the combinations of policy instruments that provide efficient combinations of inflation and unemployment. This approach results in an alternative version of the Phillips curve labelled as efficient Phillips curve. Our aim is to present an application of CGE models to a new area of research that can be especially useful when addressing policy exercises with real data. We apply our methodological proposal within a particular regional economy, Andalusia, in the south of Spain. This tool can give some keys for policy advice and policy implementation in the fight against unemployment and inflation. Journal: Economic Systems Research Pages: 349-369 Issue: 4 Volume: 24 Year: 2012 Month: 5 X-DOI: 10.1080/09535314.2012.691088 File-URL: http://hdl.handle.net/10.1080/09535314.2012.691088 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:24:y:2012:i:4:p:349-369 Template-Type: ReDIF-Article 1.0 Author-Name: Faye Duchin Author-X-Name-First: Faye Author-X-Name-Last: Duchin Author-Name: Carlos López-Morales Author-X-Name-First: Carlos Author-X-Name-Last: López-Morales Title: DO WATER-RICH REGIONS HAVE A COMPARATIVE ADVANTAGE IN FOOD PRODUCTION? IMPROVING THE REPRESENTATION OF WATER FOR AGRICULTURE IN ECONOMIC MODELS Abstract: With growing demand for fresh water and uncertain supplies, there is an increasing concern about future water scarcity. Since most freshwater withdrawals are for agriculture, reliance on water embodied in imported food (trade in ‘virtual water’) is a possible strategy to provide food to water-stressed regions while conserving their scarce supply for other purposes. To evaluate this proposition, we extend a model of interregional trade by (1) defining endowments of water that cannot be exceeded, (2) allowing simultaneous operation of rainfed and irrigated agriculture, and (3) distinguishing sub-regional endowments within a larger economic region. An application to the Mexican economy compares region-specific water abundance with economic comparative advantage under alternative scenarios. We conclude that the water-rich regions of Mexico are relatively high-cost producers of food and that they do not pick up the slack even when the lowest-cost Mexican regions are constrained by binding water constraints. Journal: Economic Systems Research Pages: 371-389 Issue: 4 Volume: 24 Year: 2012 Month: 7 X-DOI: 10.1080/09535314.2012.714746 File-URL: http://hdl.handle.net/10.1080/09535314.2012.714746 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:24:y:2012:i:4:p:371-389 Template-Type: ReDIF-Article 1.0 Author-Name: Albert E. Steenge Author-X-Name-First: Albert E. Author-X-Name-Last: Steenge Author-Name: Mònica Serrano Author-X-Name-First: Mònica Author-X-Name-Last: Serrano Title: INCOME DISTRIBUTIONS IN INPUT-OUTPUT MODELS Abstract: The analysis of income distribution (ID) has traditionally been of prime importance for economists and policy-makers. However, the standard input--output (I--O) model is not particularly well equipped for studying current issues such as the consequences of decreasing access to primary inputs or the effects of specific redistributive policies. This paper addresses this gap in the existing literature. We propose that IDs can excellently be studied by restructuring the I--O relations. A new coefficients matrix is defined, the so-called augmented input coefficients matrix. This matrix is the sum of the intermediate input coefficients matrix and newly constructed matrices of sector-specific input coefficients that represent the existing distribution of income. We show that shifts in the distribution can be modelled by attributing weights to these matrices and vary these according to system-specific rules. Numerical illustrations based on the existing literature are given throughout the paper. Journal: Economic Systems Research Pages: 391-412 Issue: 4 Volume: 24 Year: 2012 Month: 7 X-DOI: 10.1080/09535314.2012.715281 File-URL: http://hdl.handle.net/10.1080/09535314.2012.715281 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:24:y:2012:i:4:p:391-412 Template-Type: ReDIF-Article 1.0 Author-Name: Manfred Lenzen Author-X-Name-First: Manfred Author-X-Name-Last: Lenzen Author-Name: Maria Cecilia Pinto de Moura Author-X-Name-First: Maria Cecilia Author-X-Name-Last: Pinto de Moura Author-Name: Arne Geschke Author-X-Name-First: Arne Author-X-Name-Last: Geschke Author-Name: Keiichiro Kanemoto Author-X-Name-First: Keiichiro Author-X-Name-Last: Kanemoto Author-Name: Daniel Dean Moran Author-X-Name-First: Daniel Dean Author-X-Name-Last: Moran Title: A CYCLING METHOD FOR CONSTRUCTING INPUT--OUTPUT TABLE TIME SERIES FROM INCOMPLETE DATA Abstract: There are a number of approaches for constructing time series of input--output tables. Some authors generate an initial estimate for a base year, and then serially estimate tables for subsequent years using the balanced prior-year table as an initial estimate. Others first generate a series of initial estimates for the entire period, and then balance tables in parallel. Current serial methods are affected by sudden leaps in the magnitude of table elements, which occur straight after a period of data unavailability. Current parallel methods require two complete tables for base and final years in the same classification, and therefore do not work under misaligned or incomplete data. We present a new method for constructing input--output table time series that overcomes these problems by averaging over alternate forward and backward sweeps across the time series period. We also solve the problem of hysteresis causing forecast and backcast table estimates to differ. Journal: Economic Systems Research Pages: 413-432 Issue: 4 Volume: 24 Year: 2012 Month: 2 X-DOI: 10.1080/09535314.2012.724013 File-URL: http://hdl.handle.net/10.1080/09535314.2012.724013 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:24:y:2012:i:4:p:413-432 Template-Type: ReDIF-Article 1.0 Author-Name: Karen Turner Author-X-Name-First: Karen Author-X-Name-Last: Turner Title: Applied General Equilibrium: An Introduction Journal: Economic Systems Research Pages: 433-435 Issue: 4 Volume: 24 Year: 2012 Month: 12 X-DOI: 10.1080/09535314.2012.735224 File-URL: http://hdl.handle.net/10.1080/09535314.2012.735224 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:24:y:2012:i:4:p:433-435 Template-Type: ReDIF-Article 1.0 Author-Name: Arnold Tukker Author-X-Name-First: Arnold Author-X-Name-Last: Tukker Author-Name: Erik Dietzenbacher Author-X-Name-First: Erik Author-X-Name-Last: Dietzenbacher Title: GLOBAL MULTIREGIONAL INPUT-OUTPUT FRAMEWORKS: AN INTRODUCTION AND OUTLOOK Abstract: This review is the introduction to a special issue of Economic Systems Research on the topic of global multiregional input-output (GMRIO) tables, models, and analysis. It provides a short historical context of GMRIO development and its applications (many of which deal with environmental extensions) and presents the rationale for the major database projects presented in this special issue. Then the six papers are briefly introduced. This is followed by a concluding comparison of the characteristics of the main GMRIO databases developed thus far and an outlook of potential further developments. Journal: Economic Systems Research Pages: 1-19 Issue: 1 Volume: 25 Year: 2013 Month: 3 X-DOI: 10.1080/09535314.2012.761179 File-URL: http://hdl.handle.net/10.1080/09535314.2012.761179 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:25:y:2013:i:1:p:1-19 Template-Type: ReDIF-Article 1.0 Author-Name: Manfred Lenzen Author-X-Name-First: Manfred Author-X-Name-Last: Lenzen Author-Name: Daniel Moran Author-X-Name-First: Daniel Author-X-Name-Last: Moran Author-Name: Keiichiro Kanemoto Author-X-Name-First: Keiichiro Author-X-Name-Last: Kanemoto Author-Name: Arne Geschke Author-X-Name-First: Arne Author-X-Name-Last: Geschke Title: BUILDING EORA: A GLOBAL MULTI-REGION INPUT-OUTPUT DATABASE AT HIGH COUNTRY AND SECTOR RESOLUTION Abstract: There are a number of initiatives aimed at compiling large-scale global multi-region input-output (MRIO) tables complemented with non-monetary information such as on resource flows and environmental burdens. Depending on purpose or application, MRIO construction and usage has been hampered by a lack of geographical and sectoral detail; at the time of writing, the most advanced initiatives opt for a breakdown into at most 129 regions and 120 sectors. Not all existing global MRIO frameworks feature continuous time series, margins and tax sheets, and information on reliability and uncertainty. Despite these potential limitations, constructing a large MRIO requires significant manual labour and many years of time. This paper describes the results from a project aimed at creating an MRIO account that represents all countries at a detailed sectoral level, allows continuous updating, provides information on data reliability, contains table sheets expressed in basic prices as well as all margins and taxes, and contains a historical time series. We achieve these goals through a high level of procedural standardisation, automation, and data organisation. Journal: Economic Systems Research Pages: 20-49 Issue: 1 Volume: 25 Year: 2013 Month: 3 X-DOI: 10.1080/09535314.2013.769938 File-URL: http://hdl.handle.net/10.1080/09535314.2013.769938 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:25:y:2013:i:1:p:20-49 Template-Type: ReDIF-Article 1.0 Author-Name: Arnold Tukker Author-X-Name-First: Arnold Author-X-Name-Last: Tukker Author-Name: Arjan de Koning Author-X-Name-First: Arjan Author-X-Name-Last: de Koning Author-Name: Richard Wood Author-X-Name-First: Richard Author-X-Name-Last: Wood Author-Name: Troy Hawkins Author-X-Name-First: Troy Author-X-Name-Last: Hawkins Author-Name: Stephan Lutter Author-X-Name-First: Stephan Author-X-Name-Last: Lutter Author-Name: Jose Acosta Author-X-Name-First: Jose Author-X-Name-Last: Acosta Author-Name: Jose M. Rueda Cantuche Author-X-Name-First: Jose M. Author-X-Name-Last: Rueda Cantuche Author-Name: Maaike Bouwmeester Author-X-Name-First: Maaike Author-X-Name-Last: Bouwmeester Author-Name: Jan Oosterhaven Author-X-Name-First: Jan Author-X-Name-Last: Oosterhaven Author-Name: Thomas Drosdowski Author-X-Name-First: Thomas Author-X-Name-Last: Drosdowski Author-Name: Jeroen Kuenen Author-X-Name-First: Jeroen Author-X-Name-Last: Kuenen Title: EXIOPOL - DEVELOPMENT AND ILLUSTRATIVE ANALYSES OF A DETAILED GLOBAL MR EE SUT/IOT Abstract: EXIOPOL (A New Environmental Accounting Framework Using Externality Data and Input-Output Tools for Policy Analysis) was a European Union (EU)-funded project creating a detailed, global, multiregional environmentally extended Supply and Use table (MR EE SUT) of 43 countries, 129 sectors, 80 resources, and 40 emissions. We sourced primary SUT and input-output tables from Eurostat and non-EU statistical offices. We harmonized and detailed them using auxiliary national accounts data and co-efficient matrices. Imports were allocated to countries of exports using United Nations Commodity Trade Statistics Database trade shares. Optimization procedures removed imbalances in these detailing and trade linking steps. Environmental extensions were added from various sources. We calculated the EU footprint of final consumption with resulting MR EE SUT. EU policies focus mainly on energy and carbon footprints. We show that the EU land, water, and material footprint abroad is much more relevant, and should be prioritized in the EU's environmental product and trade policies. Journal: Economic Systems Research Pages: 50-70 Issue: 1 Volume: 25 Year: 2013 Month: 3 X-DOI: 10.1080/09535314.2012.761952 File-URL: http://hdl.handle.net/10.1080/09535314.2012.761952 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:25:y:2013:i:1:p:50-70 Template-Type: ReDIF-Article 1.0 Author-Name: Erik Dietzenbacher Author-X-Name-First: Erik Author-X-Name-Last: Dietzenbacher Author-Name: Bart Los Author-X-Name-First: Bart Author-X-Name-Last: Los Author-Name: Robert Stehrer Author-X-Name-First: Robert Author-X-Name-Last: Stehrer Author-Name: Marcel Timmer Author-X-Name-First: Marcel Author-X-Name-Last: Timmer Author-Name: Gaaitzen de Vries Author-X-Name-First: Gaaitzen Author-X-Name-Last: de Vries Title: THE CONSTRUCTION OF WORLD INPUT-OUTPUT TABLES IN THE WIOD PROJECT Abstract: This article describes the construction of the World Input-Output Tables (WIOTs) that constitute the core of the World Input-Output Database. WIOTs are available for the period 1995-2009 and give the values of transactions among 35 industries in 40 countries plus the 'Rest of the World' and from these industries to households, governments and users of capital goods in the same set of countries. The article describes how information from the National Accounts, Supply and Use Tables and International Trade Statistics have been harmonized, reconciled and used for estimation procedures to arrive at a consistent time series of WIOTs. Journal: Economic Systems Research Pages: 71-98 Issue: 1 Volume: 25 Year: 2013 Month: 3 X-DOI: 10.1080/09535314.2012.761180 File-URL: http://hdl.handle.net/10.1080/09535314.2012.761180 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:25:y:2013:i:1:p:71-98 Template-Type: ReDIF-Article 1.0 Author-Name: Robbie M. Andrew Author-X-Name-First: Robbie M. Author-X-Name-Last: Andrew Author-Name: Glen P. Peters Author-X-Name-First: Glen P. Author-X-Name-Last: Peters Title: A MULTI-REGION INPUT-OUTPUT TABLE BASED ON THE GLOBAL TRADE ANALYSIS PROJECT DATABASE (GTAP-MRIO) Abstract: Understanding the drivers of many environmental problems requires enumerating the global supply chain. Multi-region input-output analysis (MRIOA) is a well-established technique for this purpose, but constructing a multi-region input-output table (MRIOT) can be a formidable challenge. We constructed a large MRIOT using the Global Trade Analysis Project (GTAP) database of harmonised economic, IO, and trade data. We discuss the historical development of the GTAP-MRIO and describe its efficient construction. We provide updated carbon footprint estimates and analyse several issues relevant for MRIO construction and applications. We demonstrate that differences in environmental satellite accounts may be more important than differences in MRIOTs when calculating national carbon footprints. The GTAP-MRIO is a robust global MRIOT and, given its easy availability and implementation, it should allow the widespread application of global MRIOA by a variety of users. Journal: Economic Systems Research Pages: 99-121 Issue: 1 Volume: 25 Year: 2013 Month: 3 X-DOI: 10.1080/09535314.2012.761953 File-URL: http://hdl.handle.net/10.1080/09535314.2012.761953 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:25:y:2013:i:1:p:99-121 Template-Type: ReDIF-Article 1.0 Author-Name: Bo Meng Author-X-Name-First: Bo Author-X-Name-Last: Meng Author-Name: Yaxiong Zhang Author-X-Name-First: Yaxiong Author-X-Name-Last: Zhang Author-Name: Satoshi Inomata Author-X-Name-First: Satoshi Author-X-Name-Last: Inomata Title: COMPILATION AND APPLICATIONS OF IDE-JETRO'S INTERNATIONAL INPUT-OUTPUT TABLES Abstract: International input-output (IO) tables are among the most useful tools for economic analysis. Since these tables provide detailed information about international production networks, they have recently attracted considerable attention in research on spatial economics, global value chains, and issues relating to trade in value added. The Institute of Developing Economies at the Japan External Trade Organization (IDE-JETRO) has more than 40 years of experience in the construction and analysis of international IO tables. This paper explains the development of IDE-JETRO's multi-regional IO projects including the construction of the Asian International Input-Output table and the Transnational Interregional Input-Output table between China and Japan. To help users understand the features of the tables, this paper also gives examples of their application. Journal: Economic Systems Research Pages: 122-142 Issue: 1 Volume: 25 Year: 2013 Month: 3 X-DOI: 10.1080/09535314.2012.761597 File-URL: http://hdl.handle.net/10.1080/09535314.2012.761597 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:25:y:2013:i:1:p:122-142 Template-Type: ReDIF-Article 1.0 Author-Name: Thomas Wiedmann Author-X-Name-First: Thomas Author-X-Name-Last: Wiedmann Author-Name: John Barrett Author-X-Name-First: John Author-X-Name-Last: Barrett Title: POLICY-RELEVANT APPLICATIONS OF ENVIRONMENTALLY EXTENDED MRIO DATABASES - EXPERIENCES FROM THE UK Abstract: The impressive development in global multi-region input-output (IO) databases is accompanied by an increase in applications published in the scientific literature. However, it is not obvious whether the insights gained from these studies have indeed been used in political decision-making. We ask whether and to what extent there is policy uptake of results from environmentally extended multi-region IO (EE-MRIO) models and how it may be improved. We identify unique characteristics of such models not inherent to other approaches. We then present evidence from the UK showing that a policy process around consumption-based accounting for greenhouse gas emissions and resource use has evolved that is based on results from EE-MRIO modelling. This suggests that specific, policy-relevant information that would be impossible to obtain otherwise can be generated with the help of EE-MRIO models. Our analysis is limited to environmental applications of global MRIO models and to government policies in the UK. Journal: Economic Systems Research Pages: 143-156 Issue: 1 Volume: 25 Year: 2013 Month: 3 X-DOI: 10.1080/09535314.2012.761596 File-URL: http://hdl.handle.net/10.1080/09535314.2012.761596 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:25:y:2013:i:1:p:143-156 Template-Type: ReDIF-Article 1.0 Author-Name: Jianxi Luo Author-X-Name-First: Jianxi Author-X-Name-Last: Luo Title: WHICH INDUSTRIES TO BAIL OUT FIRST IN ECONOMIC RECESSION? RANKING US INDUSTRIAL SECTORS BY THE POWER-OF-PULL Abstract: There have been intense debates regarding which industrial sectors should be prioritized for receiving bailout in economic recessions. This paper takes a network perspective to rank sectors according to the Power-of-Pull (PoP), i.e. a sector's power to pull the overall economy. An eigenvector method is employed to assess the PoP of sectors in the USA, using input--output data from 1998 to 2010. The results support bailout to the motor vehicle sector, but argue against bailout to public infrastructure, health care and information technologies design and service sectors, and also reveal the continual decline of PoP ranking of computer and electronics manufacturing sector over time. These results confirm some but also show little support to some other economic revival policies of the Obama Administration in the USA. Journal: Economic Systems Research Pages: 157-169 Issue: 2 Volume: 25 Year: 2013 Month: 3 X-DOI: 10.1080/09535314.2013.775111 File-URL: http://hdl.handle.net/10.1080/09535314.2013.775111 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:25:y:2013:i:2:p:157-169 Template-Type: ReDIF-Article 1.0 Author-Name: Jos� M. Rueda-Cantuche Author-X-Name-First: Jos� M. Author-X-Name-Last: Rueda-Cantuche Author-Name: Thijs Ten Raa Author-X-Name-First: Thijs Ten Author-X-Name-Last: Raa Title: TESTING ASSUMPTIONS MADE IN THE CONSTRUCTION OF INPUT--OUTPUT TABLES Abstract: Product input--output (IO) tables are mainly constructed on the basis of product and/or industry technology assumptions. The choice is not trivial and deserves empirical analysis using input and output data at the level of establishments. This paper offers input--output compilers econometric tests to facilitate the construction of tailored hybrid technology-based product IO tables. We provide weighted likelihood ratios of the product and industry technology assumptions. Although the proposed econometric tests are aimed to be used ex ante, we construct four variants of hybrid technology-based product IO tables using establishment data from Andalusia (Spain) and contrast them to the official product IO table and the pure product and industry technology-based tables. Our econometric tests are not valid for industry IO tables. Journal: Economic Systems Research Pages: 170-189 Issue: 2 Volume: 25 Year: 2013 Month: 3 X-DOI: 10.1080/09535314.2013.774265 File-URL: http://hdl.handle.net/10.1080/09535314.2013.774265 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:25:y:2013:i:2:p:170-189 Template-Type: ReDIF-Article 1.0 Author-Name: Laura Atuesta Author-X-Name-First: Laura Author-X-Name-Last: Atuesta Author-Name: Geoffrey J.D. Hewings Author-X-Name-First: Geoffrey J.D. Author-X-Name-Last: Hewings Title: ECONOMIC WELFARE ANALYSIS OF THE LEGALIZATION OF DRUGS: A CGE MICROSIMULATION MODEL FOR COLOMBIA Abstract: In this paper, a computable general equilibrium (CGE) microsimulation model is used to analyze the effects of an ex ante legalization of drugs on the Colombian economy. The model consists of 11 productive sectors, 3 different labor force categories with unemployment, and 20 households divided by income and location. Changes in wages and migration are estimated using a labor participation model, and a NIDS estimates the demands of the households. Changes in household economic welfare, measured by changes in income and prices (CV and EV measurements), are very sensitive to the reinvestments that the government makes in the economy. By analyzing six different scenarios with different assumptions about changes in drug prices, investments of the government, and the termination of the armed conflict, the results suggest that economic welfare improves when the government reinvests military expenditures in other productive sectors or when the ‘economy of war’ continues and the legalization does not end the armed conflict. Journal: Economic Systems Research Pages: 190-211 Issue: 2 Volume: 25 Year: 2013 Month: 3 X-DOI: 10.1080/09535314.2012.728130 File-URL: http://hdl.handle.net/10.1080/09535314.2012.728130 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:25:y:2013:i:2:p:190-211 Template-Type: ReDIF-Article 1.0 Author-Name: Adam Rose Author-X-Name-First: Adam Author-X-Name-Last: Rose Author-Name: Dan Wei Author-X-Name-First: Dan Author-X-Name-Last: Wei Title: ESTIMATING THE ECONOMIC CONSEQUENCES OF A PORT SHUTDOWN: THE SPECIAL ROLE OF RESILIENCE Abstract: This paper develops a methodology for the estimation of the total economic consequences of a seaport disruption, factoring in the major types of resilience. The foundation of the methodology is a combination of demand-driven and supply-driven input--output analyses. Resilience is included through a series of ad hoc adjustments based on various formal models and expert judgment. Moreover, we have designed the methodology in a manner that overcomes the major shortcomings of the supply-driven approach. We apply the methodology to a 90-day disruption at the twin seaports of Beaumont and Port Arthur, Texas, which is a major port area that includes a petrochemical manufacturing complex. We find that regional gross output could decline by as much as $13 billion at the port region level, but that resilience can reduce these impacts by nearly 70%. Journal: Economic Systems Research Pages: 212-232 Issue: 2 Volume: 25 Year: 2013 Month: 6 X-DOI: 10.1080/09535314.2012.731379 File-URL: http://hdl.handle.net/10.1080/09535314.2012.731379 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:25:y:2013:i:2:p:212-232 Template-Type: ReDIF-Article 1.0 Author-Name: Mun Heng Toh Author-X-Name-First: Mun Heng Author-X-Name-Last: Toh Author-Name: Shandre Mugan Thangavelu Author-X-Name-First: Shandre Mugan Author-X-Name-Last: Thangavelu Title: AN INPUT--OUTPUT STUDY OF THE SINGAPORE INFORMATION SECTOR Abstract: The development and use of information and communication technologies is one of the key drivers of the ‘knowledge economy.’ In this paper, we investigate the impact of information technology on the output growth of the Singapore economy using the input--output framework. The input--output framework allows us to understand the impact of information sector in an integrated framework in terms of its linkages to the manufacturing and service sectors. In particular, we adopt the input--output approach to shed light on both production and diffusion activities of the information sector on the Singapore economy. The results indicate that the ICT sector provided the key linkages for the expansion of high-value added manufacturing activities and electronics export for the Singapore economy. Journal: Economic Systems Research Pages: 233-244 Issue: 2 Volume: 25 Year: 2013 Month: 6 X-DOI: 10.1080/09535314.2012.740616 File-URL: http://hdl.handle.net/10.1080/09535314.2012.740616 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:25:y:2013:i:2:p:233-244 Template-Type: ReDIF-Article 1.0 Author-Name: Patrick Canning Author-X-Name-First: Patrick Author-X-Name-Last: Canning Title: MAXIMUM-LIKELIHOOD ESTIMATES OF A US MULTIREGIONAL HOUSEHOLD EXPENDITURE SYSTEM Abstract: This paper applies the maximum-likelihood equation to a model that produces US regional household expenditure estimates using national-level data on average expenditures by type of household and regional data on the number of households by type. Empirical results follow the analytical properties of the model and demonstrate an impressive capacity to recover regional statistics. These findings are useful in applied regional studies since they demonstrate a general framework to assess the input data and the overall estimation model. Journal: Economic Systems Research Pages: 245-264 Issue: 2 Volume: 25 Year: 2013 Month: 6 X-DOI: 10.1080/09535314.2012.730991 File-URL: http://hdl.handle.net/10.1080/09535314.2012.730991 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:25:y:2013:i:2:p:245-264 Template-Type: ReDIF-Article 1.0 Author-Name: Shigemi Kagawa Author-X-Name-First: Shigemi Author-X-Name-Last: Kagawa Author-Name: Sangwon Suh Author-X-Name-First: Sangwon Author-X-Name-Last: Suh Author-Name: Yasushi Kondo Author-X-Name-First: Yasushi Author-X-Name-Last: Kondo Author-Name: Keisuke Nansai Author-X-Name-First: Keisuke Author-X-Name-Last: Nansai Title: Identifying environmentally important supply chain clusters in the automobile industry Abstract: In this paper, we develop a new approach that combines the spectral clustering method and input-output analysis to detect environmentally important supply chain clusters. The newly developed method was applied to automobile manufacturing in Japan, and major clusters with high energy intensities in the automobile supply chain were identified. This paper proposes that the car manufacturers will be able to regularly publish their life-cycle assessment reports with a focus on the indirect energy consumptions within the critical supply chains and request key auto-part manufacturers in the cluster to reduce the indirect consumptions through the relevant supply chain engagement. Journal: Economic Systems Research Pages: 265-286 Issue: 3 Volume: 25 Year: 2013 Month: 9 X-DOI: 10.1080/09535314.2012.730992 File-URL: http://hdl.handle.net/10.1080/09535314.2012.730992 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:25:y:2013:i:3:p:265-286 Template-Type: ReDIF-Article 1.0 Author-Name: Youguo Zhang Author-X-Name-First: Youguo Author-X-Name-Last: Zhang Title: IMPACT OF URBAN AND RURAL HOUSEHOLD CONSUMPTION ON CARBON EMISSIONS IN CHINA Abstract: In this paper, we utilize input-output analysis and decomposition techniques to examine the direct and indirect urban and rural per-capita carbon emissions generated by household consumption in China from 1987 to 2007. The results show that indirect emissions are considerably larger than direct emissions due to households in urban and rural areas. Indirect urban emissions increase significantly because of growing expenditures, but indirect rural emissions do not register the same increase. Direct urban emissions decrease significantly because of changes in the energy mix, but direct rural emissions show only a slight decrease. The increase in the disparity of indirect urban-rural emissions and the decrease in the disparity in direct urban-rural emissions are evident. These findings imply that both energy-saving behavior in the production sector and residential lifestyle transition - particularly in the urban areas - are significant in mitigating carbon emissions in China. Journal: Economic Systems Research Pages: 287-299 Issue: 3 Volume: 25 Year: 2013 Month: 9 X-DOI: 10.1080/09535314.2012.738188 File-URL: http://hdl.handle.net/10.1080/09535314.2012.738188 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:25:y:2013:i:3:p:287-299 Template-Type: ReDIF-Article 1.0 Author-Name: S. Lindner Author-X-Name-First: S. Author-X-Name-Last: Lindner Author-Name: J. Legault Author-X-Name-First: J. Author-X-Name-Last: Legault Author-Name: D. Guan Author-X-Name-First: D. Author-X-Name-Last: Guan Title: DISAGGREGATING THE ELECTRICITY SECTOR OF CHINA'S INPUT-OUTPUT TABLE FOR IMPROVED ENVIRONMENTAL LIFE-CYCLE ASSESSMENT Abstract: Missing process detail of sectors in Input-Output (I-O) tables has been pointed out as a limitation of I-O analysis in environmental-economic life cycle assessment. Aggregation of resource-intensive sectors decreases the accuracy of the results. Often, economic sectors are compiled in a more aggregated form than environmental satellite accounts, and as [Lenzen, M. (2011) Aggregation Versus Disaggregation in Input-Output Analysis of the Environment. Economic Systems Research, 23, 73-89] asserts, it is superior for environmental analysis to disaggregate the I-O table, even if only partial information exists for the disaggregation. In this paper we present a methodology to disaggregate the electricity sector of the Chinese national I-O table by using regional information and cost data for operation and maintenance of power plants. The electricity sector is disaggregated into a transmission and distribution sector as well as eight sub-sectors representing different types of technology in power plants (subcritical coal, hydro, etc.). The electricity consumption mix of each industry is determined by using regional industry presence and regional electricity power mixes. The disaggregated I-O table offers refined results for calculating emissions embodied in international exports from China, a valuable contribution for estimating national greenhouse gases emissions inventories under the consumption-based approach for countries that rely heavily on imports of goods from China. Journal: Economic Systems Research Pages: 300-320 Issue: 3 Volume: 25 Year: 2013 Month: 9 X-DOI: 10.1080/09535314.2012.746646 File-URL: http://hdl.handle.net/10.1080/09535314.2012.746646 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:25:y:2013:i:3:p:300-320 Template-Type: ReDIF-Article 1.0 Author-Name: �scar Deju�n Author-X-Name-First: �scar Author-X-Name-Last: Deju�n Author-Name: Luis Antonio L�pez Author-X-Name-First: Luis Antonio Author-X-Name-Last: L�pez Author-Name: Mar�a �ngeles Tobarra Author-X-Name-First: Mar�a �ngeles Author-X-Name-Last: Tobarra Author-Name: Jorge Zafrilla Author-X-Name-First: Jorge Author-X-Name-Last: Zafrilla Title: A POST-KEYNESIAN AGE MODEL TO FORECAST ENERGY DEMAND IN SPAIN Abstract: This paper develops an extended input-output model for the estimation of energy demand and related issues. It is built on the last Spanish Symmetric Input-Output Table (IOT, 2005). It has been tested for the period 2005-2008 and used for forecasting energy demand for the years 2009-2012 under different economic scenarios. The model shares some traits of the computable and applied general equilibrium models where quantity and price systems are interwoven. The differences lie in the theories explaining output and prices. Our quantity system is based on Keynes' principle of effective demand (broad energy multipliers are derived). The price system is based on the classical (Sraffian) theory of prices of production, akin to post-Keynesian full-cost prices. The general price system can be manipulated to account for the specificities of energy prices. Historical trends of energy coefficients are computed by extrapolation of past IOTs and calibration. Journal: Economic Systems Research Pages: 321-340 Issue: 3 Volume: 25 Year: 2013 Month: 9 X-DOI: 10.1080/09535314.2013.806294 File-URL: http://hdl.handle.net/10.1080/09535314.2013.806294 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:25:y:2013:i:3:p:321-340 Template-Type: ReDIF-Article 1.0 Author-Name: Erik Dietzenbacher Author-X-Name-First: Erik Author-X-Name-Last: Dietzenbacher Author-Name: Michael L. Lahr Author-X-Name-First: Michael L. Author-X-Name-Last: Lahr Title: EXPANDING EXTRACTIONS Abstract: In this paper, we generalize hypothetical extraction techniques. We suggest that the effect of certain economic phenomena can be measured by removing them from an input-output (I-O) table and by rebalancing the set of I-O accounts. The difference between the two sets of accounts yields the phenomenon's effect (or importance). We suggest that the approach can be used to measure the effect of changes in intermediate output, which are otherwise not easily rationalized within a Leontief framework. Of course, it can also be used to estimate the possible effects of the shutdown of a particular establishment or other identifiable segment of an economy. We demonstrate some properties and potential of the approach using the annual 2006 US I-O accounts. Journal: Economic Systems Research Pages: 341-360 Issue: 3 Volume: 25 Year: 2013 Month: 9 X-DOI: 10.1080/09535314.2013.774266 File-URL: http://hdl.handle.net/10.1080/09535314.2013.774266 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:25:y:2013:i:3:p:341-360 Template-Type: ReDIF-Article 1.0 Author-Name: Umed Temurshoev Author-X-Name-First: Umed Author-X-Name-Last: Temurshoev Author-Name: Ronald E. Miller Author-X-Name-First: Ronald E. Author-X-Name-Last: Miller Author-Name: Maaike C. Bouwmeester Author-X-Name-First: Maaike C. Author-X-Name-Last: Bouwmeester Title: A NOTE ON THE GRAS METHOD Abstract: The GRAS method as presented by Junius and Oosterhaven [Junius, T. and J. Oosterhaven (2003) The Solution of Updating or Regionalizing a Matrix with Both Positive and Negative Elements. Economic Systems Research, 15, 87-96] assumes that every row and every column of a matrix to be balanced has at least one positive element. This might not necessarily be true in practice, in particular, when dealing with large-scale input-ouput tables, supply and use tables, social accounting matrices, or, for that matter, any other matrix. In this short note we relax this assumption and make available our MATLAB program for anyone interested in matrix GRASing. The same issue arises in the presentations of the KRAS method [Lenzen, M., B. Gallego and R. Wood (2009) Matrix Balancing Under Conflicting Information. Economic Systems Research, 21, 23-44] and the SUT-RAS method [Temurshoev, U. and M.P. Timmer (2011) Joint Estimation of Supply and Use Tables. Papers in Regional Science, 90, 863-882], which should be accordingly accounted for in their empirical applications. Journal: Economic Systems Research Pages: 361-367 Issue: 3 Volume: 25 Year: 2013 Month: 9 X-DOI: 10.1080/09535314.2012.746645 File-URL: http://hdl.handle.net/10.1080/09535314.2012.746645 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:25:y:2013:i:3:p:361-367 Template-Type: ReDIF-Article 1.0 Author-Name: Erik Dietzenbacher Author-X-Name-First: Erik Author-X-Name-Last: Dietzenbacher Author-Name: Manfred Lenzen Author-X-Name-First: Manfred Author-X-Name-Last: Lenzen Author-Name: Bart Los Author-X-Name-First: Bart Author-X-Name-Last: Los Author-Name: Dabo Guan Author-X-Name-First: Dabo Author-X-Name-Last: Guan Author-Name: Michael L. Lahr Author-X-Name-First: Michael L. Author-X-Name-Last: Lahr Author-Name: Ferran Sancho Author-X-Name-First: Ferran Author-X-Name-Last: Sancho Author-Name: Sangwon Suh Author-X-Name-First: Sangwon Author-X-Name-Last: Suh Author-Name: Cuihong Yang Author-X-Name-First: Cuihong Author-X-Name-Last: Yang Title: INPUT--OUTPUT ANALYSIS: THE NEXT 25 YEARS Abstract: This year marks the 25th anniversary of the International Input--Output Association and the 25th volume of Economic Systems Research. To celebrate this anniversary, a group of eight experts provide their views on the future of input--output. Looking forward, they foresee progress in terms of data collections, methods, theory testing, and focus and scope. Journal: Economic Systems Research Pages: 369-389 Issue: 4 Volume: 25 Year: 2013 Month: 12 X-DOI: 10.1080/09535314.2013.846902 File-URL: http://hdl.handle.net/10.1080/09535314.2013.846902 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:25:y:2013:i:4:p:369-389 Template-Type: ReDIF-Article 1.0 Author-Name: Reinier Bikker Author-X-Name-First: Reinier Author-X-Name-Last: Bikker Author-Name: Jacco Daalmans Author-X-Name-First: Jacco Author-X-Name-Last: Daalmans Author-Name: Nino Mushkudiani Author-X-Name-First: Nino Author-X-Name-Last: Mushkudiani Title: BENCHMARKING LARGE ACCOUNTING FRAMEWORKS: A GENERALIZED MULTIVARIATE MODEL Abstract: We present a multivariate benchmarking model for achieving consistency between large quarterly and annual accounting frameworks. The method is based on a quadratic optimization problem, for which many efficient numeric solvers exist. The method combines several features, such as linear constraints, ratio constraints, weights, and inequalities, in one model. Therefore, a wide range of modelling possibilities is supported. This method is especially interesting for national statistical offices, to simplify their processes to achieve consistency between publications. Journal: Economic Systems Research Pages: 390-408 Issue: 4 Volume: 25 Year: 2013 Month: 12 X-DOI: 10.1080/09535314.2013.801010 File-URL: http://hdl.handle.net/10.1080/09535314.2013.801010 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:25:y:2013:i:4:p:390-408 Template-Type: ReDIF-Article 1.0 Author-Name: Vittorio Nicolardi Author-X-Name-First: Vittorio Author-X-Name-Last: Nicolardi Title: SIMULTANEOUSLY BALANCING SUPPLY--USE TABLES AT CURRENT AND CONSTANT PRICES: A NEW PROCEDURE Abstract: According to the 1993 System of National Accounts, the annual Supply--Use Tables (SUTs) need to be compiled at both current and constant prices by the National Institutes of Statistics. The most appropriate way to obtain consistent SUTs at both current and constant prices is to balance them simultaneously but, in this case, the main complexity is the nonlinearity that inevitably occurs. This paper proposes a new method to balance extremely large sets of National Accounts simultaneously at current and constant prices. The distinctive features of the proposed balancing method are its flexibility, which is very high compared with the other methods in the literature, and its capability to allow the control of the consistency of the system of deflators that are used. This new balancing method has been applied to balance the Italian 2006 SUTs simultaneously at current and constant prices, and it has yielded very good outcomes. Journal: Economic Systems Research Pages: 409-434 Issue: 4 Volume: 25 Year: 2013 Month: 12 X-DOI: 10.1080/09535314.2013.808990 File-URL: http://hdl.handle.net/10.1080/09535314.2013.808990 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:25:y:2013:i:4:p:409-434 Template-Type: ReDIF-Article 1.0 Author-Name: Jos� M. Rueda-Cantuche Author-X-Name-First: Jos� M. Author-X-Name-Last: Rueda-Cantuche Author-Name: Erik Dietzenbacher Author-X-Name-First: Erik Author-X-Name-Last: Dietzenbacher Author-Name: Esteban Fern�ndez Author-X-Name-First: Esteban Author-X-Name-Last: Fern�ndez Author-Name: Antonio F. Amores Author-X-Name-First: Antonio F. Author-X-Name-Last: Amores Title: THE BIAS OF THE MULTIPLIER MATRIX WHEN SUPPLY AND USE TABLES ARE STOCHASTIC Abstract: The literature on stochastic input--output (I--O) analysis has paid considerable attention to the bias in the Leontief inverse. This paper extends previous studies by assuming supply and use tables (SUTs rather than I--O tables or input coefficients matrices) to be stochastic. This is a natural starting point because SUTs have become the basic data sources for I--O applications. In a Monte Carlo simulation experiment, a given SUT is randomized in two different ways and the effects are determined for eight different multiplier matrices. The analysis is carried out for Spain, Italy, the Netherlands, Germany and Finland, using their SUTs for 2006. The findings indicate that, in general, biases are statistically significant but negligibly small. This corroborates earlier findings obtained for stochastic I--O tables. Journal: Economic Systems Research Pages: 435-448 Issue: 4 Volume: 25 Year: 2013 Month: 12 X-DOI: 10.1080/09535314.2013.776947 File-URL: http://hdl.handle.net/10.1080/09535314.2013.776947 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:25:y:2013:i:4:p:435-448 Template-Type: ReDIF-Article 1.0 Author-Name: Stephen D. Casler Author-X-Name-First: Stephen D. Author-X-Name-Last: Casler Title: IMPLICIT ELASTICITIES AND PRICE EFFECTS: AN UPDATED PROCEDURE Abstract: Based on the general procedure described by Casler [(2011) Coefficient Change, Price Effects, and Implicit Elasticities: Estimating Microeconomic Determinants over Two Time Periods. Economic Systems Research, 23, 153--174], this paper presents an updated approach to the estimation of input coefficient changes as functions of changing prices. The procedure makes direct use of relationships that emerge from the model of cost minimization subject to producing a desired level of output. Based on an initial specification of constant cross-price derivatives, the imposition of adding up and symmetry conditions allows the actual price and coefficient changes that occur between periods to identify implicit own and cross-price derivatives and corresponding elasticities, using data for only two time periods. With this updated approach, the calculation of derivatives is far simpler and leads to far more accurate measures of price-induced input--output coefficient changes than the original version. Journal: Economic Systems Research Pages: 449-455 Issue: 4 Volume: 25 Year: 2013 Month: 12 X-DOI: 10.1080/09535314.2013.775405 File-URL: http://hdl.handle.net/10.1080/09535314.2013.775405 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:25:y:2013:i:4:p:449-455 Template-Type: ReDIF-Article 1.0 Author-Name: Manfred Lenzen Author-X-Name-First: Manfred Author-X-Name-Last: Lenzen Author-Name: Bart Los Author-X-Name-First: Bart Author-X-Name-Last: Los Title: Editors' report Journal: Economic Systems Research Pages: 456-457 Issue: 4 Volume: 25 Year: 2013 Month: 12 X-DOI: 10.1080/09535314.2013.849061 File-URL: http://hdl.handle.net/10.1080/09535314.2013.849061 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:25:y:2013:i:4:p:456-457 Template-Type: ReDIF-Article 1.0 Author-Name: Yasuhide Okuyama Author-X-Name-First: Yasuhide Author-X-Name-Last: Okuyama Author-Name: Joost R. Santos Author-X-Name-First: Joost R. Author-X-Name-Last: Santos Title: DISASTER IMPACT AND INPUT--OUTPUT ANALYSIS Abstract: Macroeconomics models, such as the input--output model, the social accounting matrix, and the computable general equilibrium model, have been used for impact analysis of catastrophic disasters for some time. While the use of such models to disaster situation, which may quite differ from the ordinary economic setting, has been critiqued (for recent example, see Albala-Bertrand, 2013), there are still valuable reasons for the use of such models. In particular, such models can be used in order to quickly provide a ballpark estimate of the system-wide impact for recovery plan and finance and/or to evaluate disaster countermeasures in the pre-event period. This paper presents how these methodologies have evolved to incorporate with disaster-specific feature and discusses how far they still need to go from the current stage. This paper also serves as a preface to this special issue, which encompasses several papers devoted to the use of macroeconomic data and models to assess economic losses from disasters. Journal: Economic Systems Research Pages: 1-12 Issue: 1 Volume: 26 Year: 2014 Month: 3 X-DOI: 10.1080/09535314.2013.871505 File-URL: http://hdl.handle.net/10.1080/09535314.2013.871505 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:26:y:2014:i:1:p:1-12 Template-Type: ReDIF-Article 1.0 Author-Name: Yoshio Kajitani Author-X-Name-First: Yoshio Author-X-Name-Last: Kajitani Author-Name: Hirokazu Tatano Author-X-Name-First: Hirokazu Author-X-Name-Last: Tatano Title: ESTIMATION OF PRODUCTION CAPACITY LOSS RATE AFTER THE GREAT EAST JAPAN EARTHQUAKE AND TSUNAMI IN 2011 Abstract: This research aims to investigate a method for estimating the production capacity loss rate (PCLR) of industrial sectors damaged by a disaster, such as an earthquake, tsunami, or nuclear radiation, particularly the 2011 Great East Japan Earthquake. PCLR is fundamental information required to gain an understanding of economic losses caused by a disaster. In particular, this paper proposes a method of PCLR estimation that considers the two main causes of capacity losses as observed from past earthquake disasters, namely damage to production facilities and disruption of lifeline systems. To achieve the quantitative estimation of PCLR, functional fragility curves considering the relationship between production capacity and earthquake ground motion and lifeline resilience factors for capturing the impact of lifeline disruptions have been adopted, while actual recovery curves are considered mainly for damaged facilities. Through the application of this method to the case study of the 2011 Great East Japan Earthquake, the PCLR in various industrial sectors is estimated; the estimated PCLR in the manufacturing sectors are then compared to the corresponding index of industrial production. The results demonstrate that the estimated values are close to the actual production indices in the overall manufacturing sector and many of the individual sectors. Journal: Economic Systems Research Pages: 13-38 Issue: 1 Volume: 26 Year: 2014 Month: 3 X-DOI: 10.1080/09535314.2013.872081 File-URL: http://hdl.handle.net/10.1080/09535314.2013.872081 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:26:y:2014:i:1:p:13-38 Template-Type: ReDIF-Article 1.0 Author-Name: Olaf Jonkeren Author-X-Name-First: Olaf Author-X-Name-Last: Jonkeren Author-Name: Georgios Giannopoulos Author-X-Name-First: Georgios Author-X-Name-Last: Giannopoulos Title: ANALYSING CRITICAL INFRASTRUCTURE FAILURE WITH A RESILIENCE INOPERABILITY INPUT--OUTPUT MODEL Abstract: Over the past few years much effort has been made in modelling economic losses resulting from critical infrastructure failure. It has appeared that including resilience measures in the modelling approach, which may mute the losses considerably, is a challenging task. At the same time it is necessary because it prevents the modeller from generating overestimates. This study presents two directions to improve the modelling of (economic) resilience for which the state-of-the art with respect to dynamic inoperability input--output modelling is taken as a starting point. Firstly, the new model allows for a different recovery path than the traditionally assumed 'concave up decreasing curve' describes for a disrupted infrastructure or economic sector in the aftermath of a disaster. In this paper, we explain how the recovery path may depend on the type of disaster. Secondly, the model refines the aspect of 'inventory' as a resilience measure. Inventory is interpreted in a broad sense here: it can be any resilience measures which enable an infrastructure or economic sector to continue its supply despite being disrupted. The model is applied to both a simple two-sector illustrative example and a severe winter storm scenario in Europe using economic data from the World Input--Output Database to show its practical usefulness. Journal: Economic Systems Research Pages: 39-59 Issue: 1 Volume: 26 Year: 2014 Month: 3 X-DOI: 10.1080/09535314.2013.872604 File-URL: http://hdl.handle.net/10.1080/09535314.2013.872604 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:26:y:2014:i:1:p:39-59 Template-Type: ReDIF-Article 1.0 Author-Name: Joost R. Santos Author-X-Name-First: Joost R. Author-X-Name-Last: Santos Author-Name: Krista Danielle S. Yu Author-X-Name-First: Krista Danielle S. Author-X-Name-Last: Yu Author-Name: Sheree Ann T. Pagsuyoin Author-X-Name-First: Sheree Ann T. Author-X-Name-Last: Pagsuyoin Author-Name: Raymond R. Tan Author-X-Name-First: Raymond R. Author-X-Name-Last: Tan Title: TIME-VARYING DISASTER RECOVERY MODEL FOR INTERDEPENDENT ECONOMIC SYSTEMS USING HYBRID INPUT--OUTPUT AND EVENT TREE ANALYSIS Abstract: Disasters damage physical infrastructure systems, disrupt the movement of people and commodities, and cause significant economic losses. This paper develops an I--O model extension using an event tree analysis to assess the propagation of disaster effects across interdependent economic sectors using the inoperability and economic loss metrics. Inoperability, a dimensionless index that ranges between 0 and 1, indicates the extent to which a sector's production deviates below its normal state. On the other hand, economic loss is the monetary worth of the drop in output incurred in each sector of the economy due to the disaster. The new dynamic I--O extension is capable of adjusting the inoperability parameters within the disaster timeline to reflect events that can either degrade or enhance the predicted paths of sector recovery. It was implemented to the Nashville region -- a metropolitan area in the USA known for its vibrant music and the tourism industry. The Nashville region is frequently hit by natural disasters such as tornadoes and floods, which makes it a suitable case study site for the model application. Results of the study can help identify critical economic sectors and ultimately provide insights for formulating preparedness decisions to expedite disaster recovery. Journal: Economic Systems Research Pages: 60-80 Issue: 1 Volume: 26 Year: 2014 Month: 3 X-DOI: 10.1080/09535314.2013.872602 File-URL: http://hdl.handle.net/10.1080/09535314.2013.872602 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:26:y:2014:i:1:p:60-80 Template-Type: ReDIF-Article 1.0 Author-Name: Krista Danielle S. Yu Author-X-Name-First: Krista Danielle S. Author-X-Name-Last: Yu Author-Name: Raymond R. Tan Author-X-Name-First: Raymond R. Author-X-Name-Last: Tan Author-Name: Kathleen B. Aviso Author-X-Name-First: Kathleen B. Author-X-Name-Last: Aviso Author-Name: Michael Angelo B. Promentilla Author-X-Name-First: Michael Angelo B. Author-X-Name-Last: Promentilla Author-Name: Joost R. Santos Author-X-Name-First: Joost R. Author-X-Name-Last: Santos Title: A VULNERABILITY INDEX FOR POST-DISASTER KEY SECTOR PRIORITIZATION Abstract: Input--output-based techniques have proven to be effective in modeling how disasters lead to economic disruptions, while taking into account the structural connectivity of economic systems. In particular, through the inoperability input--output model (IIM), the degree of failure in an economic system can be quantified on a scale from 0 (normal state) to 1 (complete failure). This paper develops a vulnerability index that builds upon the foundations of the Leontief input--output model and the IIM, which is capable of identifying and prioritizing the key sectors in the aftermath of disasters. The key sector prioritization framework proposed in this paper is expected to contribute to the domain of disaster preparedness planning, such as enhancing the efficiency of resource allocation across various sectors. The proposed vulnerability index is formulated in terms of three underlying components: (1) economic impact, (2) propagation length, and (3) sector size. The vulnerability index captures the impact of investments to various sectors in times of disaster in order to yield the maximum benefits to the entire economy. This paper considers a baseline scenario that assumes that the decision-maker has an equal preference for all index components. Using Monte Carlo simulation and sensitivity analysis, we investigated the extent to which the key sector rankings could fluctuate with respect to variations in the decision-maker preferences. Key sectors tend to be sensitive to the weight assignments across the three vulnerability index components; nevertheless, some sectors are less sensitive to such weight variations and may persist on their level of priority, independent of the scenario. Using the Philippine input--output data, we found that the private services sector is consistently a high-priority sector, the trade sector is a mid-priority sector while the real estate and ownership of dwellings sector tend to be a low-priority sector. Journal: Economic Systems Research Pages: 81-97 Issue: 1 Volume: 26 Year: 2014 Month: 3 X-DOI: 10.1080/09535314.2013.872603 File-URL: http://hdl.handle.net/10.1080/09535314.2013.872603 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:26:y:2014:i:1:p:81-97 Template-Type: ReDIF-Article 1.0 Author-Name: Yasuhide Okuyama Author-X-Name-First: Yasuhide Author-X-Name-Last: Okuyama Title: DISASTER AND ECONOMIC STRUCTURAL CHANGE: CASE STUDY ON THE 1995 KOBE EARTHQUAKE Abstract: In 1995, the Kobe Earthquake occurred in the second largest economic region of Japan, and its economic damages were accounted around 10 trillion yen. A catastrophic event of this magnitude would have surely created some long-run effects to the regional economy as well as to the surrounding regions. Additionally, the recovery and reconstruction activities would have affected the economic structure of the region and interdependence between regions in a potentially different way from the original growth trend before the event. While these long-run economic effects may have become sizable, few studies have been conducted to empirically measure or evaluate such effects, due to the significant noises in economic data muddled with macroeconomic influences from the outside. This paper presents an empirical investigation of long-run economic effects of the Kobe Earthquake, using structural decomposition methods. The results indicate significant changes in economic structure of the Kobe economy, and the changes are quite different across sectors and among factors. An additional investigation using shift-share analysis yielded the regional-specific changes; the corresponding decomposed factors of structural analysis with shift-share results appear complicated, and changes in regional final demand were found to be most influential to the changes in output for many sectors. Journal: Economic Systems Research Pages: 98-117 Issue: 1 Volume: 26 Year: 2014 Month: 3 X-DOI: 10.1080/09535314.2013.871506 File-URL: http://hdl.handle.net/10.1080/09535314.2013.871506 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:26:y:2014:i:1:p:98-117 Template-Type: ReDIF-Article 1.0 Author-Name: Haiyan Zhang Author-X-Name-First: Haiyan Author-X-Name-Last: Zhang Author-Name: Michael L. Lahr Author-X-Name-First: Michael L. Author-X-Name-Last: Lahr Title: CAN THE CARBONIZING DRAGON BE DOMESTICATED? INSIGHTS FROM A DECOMPOSITION OF ENERGY CONSUMPTION AND INTENSITY IN CHINA, 1987--2007 Abstract: China has relied on energy to stimulate its booming economy. As a result, its share of world energy consumption rose to 17.3% in 2009 from 7.9% in 1978. Somewhat surprisingly, through 2000 its rate of energy consumption was about half its rate of economic growth. This trend changed after 2001 as energy consumption rose about 1.3 times more rapidly than did gross domestic product through 2005. Through heavy governmental influence, energy intensity subsequently reduced through 2007, but just marginally. This paper uses the structural decomposition approach to understand key drivers behind changes in China's energy intensity and its energy consumption from 1987 to 2007. In our model, energy intensity change was decomposed into five factors: changes in energy efficiency, changes in share of value added, changes in input structure, changes in consumption structure, and changes in consumption volume. This paper provides insights into how changes in China's economic structure, technology, urbanization, and lifestyle affect energy intensity and energy consumption. Journal: Economic Systems Research Pages: 119-140 Issue: 2 Volume: 26 Year: 2014 Month: 6 X-DOI: 10.1080/09535314.2014.880663 File-URL: http://hdl.handle.net/10.1080/09535314.2014.880663 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:26:y:2014:i:2:p:119-140 Template-Type: ReDIF-Article 1.0 Author-Name: Mar�a Teresa �lvarez-Mart�nez Author-X-Name-First: Mar�a Teresa Author-X-Name-Last: �lvarez-Mart�nez Author-Name: Clemente Polo Author-X-Name-First: Clemente Author-X-Name-Last: Polo Title: REDUCE EMPLOYERS' SOCIAL SECURITY CONTRIBUTIONS AND CONTROL LABOR FRAUD: REMEDIES FOR SPAIN'S AILING ECONOMY? Abstract: The aim of this paper is to quantify the impact of the reduction on social security contributions (SSCs) of employers recently claimed by the Spanish enterprisers' organizations on the main macroeconomic variables. The effects of this tax reform are evaluated with a Computable General Equilibrium model with the neoclassical closure rule. The model is calibrated with a Social Accounting Matrix for the year 2000 (SAMES-00) elaborated by the authors. Results show that lower SSCs of employers raise employment, households' welfare and real gross domestic product (GDP) but also increase the public deficit. These positive effects remain when the reduction is compensated with personal income taxes to keep the public deficit/GDP ratio constant and also when the compensating variable is value-added tax (VAT). Unlike in previous studies, the most positive effects are obtained when the lower public revenues are compensated via lower coverage of unemployment benefits. Journal: Economic Systems Research Pages: 141-154 Issue: 2 Volume: 26 Year: 2014 Month: 6 X-DOI: 10.1080/09535314.2014.897218 File-URL: http://hdl.handle.net/10.1080/09535314.2014.897218 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:26:y:2014:i:2:p:141-154 Template-Type: ReDIF-Article 1.0 Author-Name: Mat�as Piaggio Author-X-Name-First: Mat�as Author-X-Name-Last: Piaggio Author-Name: Vicent Alc�ntara Author-X-Name-First: Vicent Author-X-Name-Last: Alc�ntara Author-Name: Emilio Padilla Author-X-Name-First: Emilio Author-X-Name-Last: Padilla Title: GREENHOUSE GAS EMISSIONS AND ECONOMIC STRUCTURE IN URUGUAY Abstract: Using input--output analysis, we identify the key sectors in greenhouse gas (GHG) emissions of the Uruguayan economy. The responsibilities of each sector in terms of its emissions are decomposed into an own component, generated during the activities of the sector, and an indirect component, generated by the induced activities in other sectors. This has important implications for the design of mitigation polices, as the appropriate policy measures are contingent on the nature of the pollution. Technical improvements and best practices are effective only when applied to directly polluting sectors, while demand policies may be more appropriate for indirectly polluting sectors. In addition, we analyze pollution generated during the production of exports. The results show that demand policies are going to be effective in the Building, the Hotel and restaurants, and the Wholesale and retail trade; and repair of motor vehicles and motorcycles sectors. These policies complement GHG emissions' mitigation policies in directly polluting sectors (mainly the Cattle farming and the transport-related sectors). Finally, methane and nitrous oxide emissions are mainly the consequence of production for exports, while carbon dioxide emissions are mainly driven by production for domestic consumption. Journal: Economic Systems Research Pages: 155-176 Issue: 2 Volume: 26 Year: 2014 Month: 6 X-DOI: 10.1080/09535314.2013.869559 File-URL: http://hdl.handle.net/10.1080/09535314.2013.869559 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:26:y:2014:i:2:p:155-176 Template-Type: ReDIF-Article 1.0 Author-Name: Jaroslav Sixta Author-X-Name-First: Jaroslav Author-X-Name-Last: Sixta Author-Name: Jakub Fischer Author-X-Name-First: Jakub Author-X-Name-Last: Fischer Title: USING INPUT--OUTPUT TABLES FOR ESTIMATES OF CZECH GROSS DOMESTIC PRODUCT 1970--1989 Abstract: The paper describes the transformation of original macroeconomic data for the Czech Republic in the period of socialism to the current methodology of national accounts. Since the Czech Republic was a part of former Czechoslovakia, such estimates were not usually published. The key approach is based on symmetric input--output tables (SIOTs) that allow the description of several segments of the economy. SIOTs were compiled directly from data sources on a regular basis instead of supply and use tables. We used SIOTs for 1973 and 1987 to investigate thoroughly the differences between the previously used Material Product System (MPS) and the System of National Accounts (SNA). After that, we identified the most important differences between MPS and SNA, and constructed the time series of Czech gross domestic product for 1970--1989. The estimated time series are fully consistent with official figures of the Czech Statistical Office published from 1990 onwards. Journal: Economic Systems Research Pages: 177-196 Issue: 2 Volume: 26 Year: 2014 Month: 6 X-DOI: 10.1080/09535314.2013.853651 File-URL: http://hdl.handle.net/10.1080/09535314.2013.853651 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:26:y:2014:i:2:p:177-196 Template-Type: ReDIF-Article 1.0 Author-Name: Manfred Lenzen Author-X-Name-First: Manfred Author-X-Name-Last: Lenzen Author-Name: Daniel D. Moran Author-X-Name-First: Daniel D. Author-X-Name-Last: Moran Author-Name: Arne Geschke Author-X-Name-First: Arne Author-X-Name-Last: Geschke Author-Name: Keiichiro Kanemoto Author-X-Name-First: Keiichiro Author-X-Name-Last: Kanemoto Title: A NON-SIGN-PRESERVING RAS VARIANT Abstract: We have developed a variant of the RAS generalised iterative scaling method that is able to change the sign between successive iterates, and thus fulfil constraints that are infeasible for existing RAS variants. Like earlier RAS variants, our method can handle constraints on arbitrarily sized and shaped subsets of matrix elements, include reliability of the initial estimate and the external constraints, and deal with negative values. Journal: Economic Systems Research Pages: 197-208 Issue: 2 Volume: 26 Year: 2014 Month: 6 X-DOI: 10.1080/09535314.2014.897933 File-URL: http://hdl.handle.net/10.1080/09535314.2014.897933 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:26:y:2014:i:2:p:197-208 Template-Type: ReDIF-Article 1.0 Author-Name: Theodore Mariolis Author-X-Name-First: Theodore Author-X-Name-Last: Mariolis Author-Name: Lefteris Tsoulfidis Author-X-Name-First: Lefteris Author-X-Name-Last: Tsoulfidis Title: ON BR�DY'S CONJECTURE: THEORY, FACTS AND FIGURES ABOUT INSTABILITY OF THE US ECONOMY Abstract: Br�dy's conjecture regarding the instability of economies is submitted to an empirical test using input--output flow tables of varying size for the US economy, for the benchmark years 1997 and 2002, as well as for the period 1998--2011. The results obtained using input--output tables of various dimensions lend support to the view of increasing instability (in the sense of Br�dy) of the US economy over the period considered. Furthermore, our analysis shows that only a few vertically integrated industries are enough to shape the behaviour of the entire economy in the case of a disturbance. These results may usefully be contrasted with those derived in a parallel literature on aggregate fluctuations from microeconomic 'idiosyncratic' shocks. Journal: Economic Systems Research Pages: 209-223 Issue: 2 Volume: 26 Year: 2014 Month: 6 X-DOI: 10.1080/09535314.2013.879698 File-URL: http://hdl.handle.net/10.1080/09535314.2013.879698 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:26:y:2014:i:2:p:209-223 Template-Type: ReDIF-Article 1.0 Author-Name: Chang K. Seung Author-X-Name-First: Chang K. Author-X-Name-Last: Seung Title: MEASURING SPILLOVER EFFECTS OF SHOCKS TO THE ALASKA ECONOMY: AN INTER-REGIONAL SOCIAL ACCOUNTING MATRIX (IRSAM) MODEL APPROACH Abstract: An inter-regional social accounting matrix (IRSAM) model is used to estimate the spillover effects occurring between economies of two US regions -- (i) Alaska, which depends heavily on imports of commodities and factors of production from outside the region, and (ii) the rest of the US (RoUS). Multiplier decomposition is used to calculate intra-regional multipliers and spillover effects between the two regions. Results show that a significant percentage (46.3--70.8%) of the total secondary impacts of a shock to Alaskan industries leaks out of Alaska and flows to the RoUS. An analysis of household multipliers indicates that over 60% of the total secondary effects of an increase in Alaska household income accrues to the RoUS households. Policymakers are concerned with identifying the magnitude, nature, and geographic distribution of economic impacts from the policies they implement. The IRSAM model provides the framework for a better understanding of the intra-regional and spillover effects of policies. Journal: Economic Systems Research Pages: 224-238 Issue: 2 Volume: 26 Year: 2014 Month: 6 X-DOI: 10.1080/09535314.2013.803039 File-URL: http://hdl.handle.net/10.1080/09535314.2013.803039 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:26:y:2014:i:2:p:224-238 Template-Type: ReDIF-Article 1.0 Author-Name: Satoshi Inomata Author-X-Name-First: Satoshi Author-X-Name-Last: Inomata Author-Name: Anne Owen Author-X-Name-First: Anne Author-X-Name-Last: Owen Title: COMPARATIVE EVALUATION OF MRIO DATABASES Abstract: This editorial is the introduction to a special issue of Economics Systems Research on the topic of intercomparison of multi-regional input-output (MRIO) databases and analyses. It explains the rationale for dedicating an issue of this journal to this area of research. Then the six papers chosen for this issue are introduced. This is followed by a concluding section outlining future directions for developers and users of MRIO databases. Journal: Economic Systems Research Pages: 239-244 Issue: 3 Volume: 26 Year: 2014 Month: 9 X-DOI: 10.1080/09535314.2014.940856 File-URL: http://hdl.handle.net/10.1080/09535314.2014.940856 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:26:y:2014:i:3:p:239-244 Template-Type: ReDIF-Article 1.0 Author-Name: Daniel Moran Author-X-Name-First: Daniel Author-X-Name-Last: Moran Author-Name: Richard Wood Author-X-Name-First: Richard Author-X-Name-Last: Wood Title: CONVERGENCE BETWEEN THE EORA, WIOD, EXIOBASE, AND OPENEU'S CONSUMPTION-BASED CARBON ACCOUNTS Abstract: In this paper, we take an overview of several of the biggest independently constructed global multi-regional input-output (MRIO) databases and ask how reliable and consonant these databases are. The key question is whether MRIO accounts are robust enough for setting environmental policies. This paper compares the results of four global MRIOs: Eora, WIOD, EXIOBASE, and the GTAP-based OpenEU databases, and investigates how much each diverges from the multi-model mean. We also use Monte Carlo analysis to conduct sensitivity analysis of the robustness of each accounts' results and we test to see how much variation in the environmental satellite account, rather than the economic structure itself, causes divergence in results. After harmonising the satellite account, we found that carbon footprint results for most major economies disagree by>10% between MRIOs. Confidence estimates are necessary if MRIO methods and consumption-based accounting are to be used in environmental policy-making at the national level. Journal: Economic Systems Research Pages: 245-261 Issue: 3 Volume: 26 Year: 2014 Month: 9 X-DOI: 10.1080/09535314.2014.935298 File-URL: http://hdl.handle.net/10.1080/09535314.2014.935298 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:26:y:2014:i:3:p:245-261 Template-Type: ReDIF-Article 1.0 Author-Name: Anne Owen Author-X-Name-First: Anne Author-X-Name-Last: Owen Author-Name: Kjartan Steen-Olsen Author-X-Name-First: Kjartan Author-X-Name-Last: Steen-Olsen Author-Name: John Barrett Author-X-Name-First: John Author-X-Name-Last: Barrett Author-Name: Thomas Wiedmann Author-X-Name-First: Thomas Author-X-Name-Last: Wiedmann Author-Name: Manfred Lenzen Author-X-Name-First: Manfred Author-X-Name-Last: Lenzen Title: A STRUCTURAL DECOMPOSITION APPROACH TO COMPARING MRIO DATABASES Abstract: The construction of multi-regional input-output tables is complex, and databases produced using different approaches lead to different analytical outcomes. We outline a decomposition methodology for investigating the variations that exist when using different multiregional input-output (MRIO) systems to calculate a region's consumption-based account. Structural decomposition analysis attributes the change in emissions to a set of dependent determinants, such as technical coefficients, the Leontief inverse and final demands. We apply our methodology to three MRIO databases - Eora, GTAP and WIOD. Findings reveal that the variation between Eora and GTAP can be attributed to differences in the Leontief inverse and emissions' data, whereas the variation between Eora and WIOD is due to differences in final demand and the Leontief inverse. For the majority of regions, GTAP and WIOD produce similar results. The approach in this study could help move MRIO databases from the academic arena to a useful policy instrument. Journal: Economic Systems Research Pages: 262-283 Issue: 3 Volume: 26 Year: 2014 Month: 9 X-DOI: 10.1080/09535314.2014.935299 File-URL: http://hdl.handle.net/10.1080/09535314.2014.935299 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:26:y:2014:i:3:p:262-283 Template-Type: ReDIF-Article 1.0 Author-Name: Kjartan Steen-Olsen Author-X-Name-First: Kjartan Author-X-Name-Last: Steen-Olsen Author-Name: Anne Owen Author-X-Name-First: Anne Author-X-Name-Last: Owen Author-Name: Edgar G. Hertwich Author-X-Name-First: Edgar G. Author-X-Name-Last: Hertwich Author-Name: Manfred Lenzen Author-X-Name-First: Manfred Author-X-Name-Last: Lenzen Title: EFFECTS OF SECTOR AGGREGATION ON CO2 MULTIPLIERS IN MULTIREGIONAL INPUT-OUTPUT ANALYSES Abstract: The past few years have seen the emergence of several global multiregional input-output (MRIO) databases. Due to the cost and complexity of developing such extensive tables, industry sectors are generally represented at a rather aggregate level. Currently, one of the most important applications of input-output analysis is environmental assessments, for which highly aggregate sectors may not be sufficient to yield accurate results. We experiment with four of the most important global MRIO systems available, analyzing the sensitivity of a set of aggregate CO2 multipliers to aggregations in the MRIO tables used to calculate them. Across databases, we find (a) significant sensitivity to background system detail and (b) that sub-sectors contained within the same aggregate MRIO sector may exhibit highly different carbon multipliers. We conclude that the additional information provided by the extra sector detail may warrant the additional costs of compilation, due to the heterogeneous nature of economic sectors in terms of their environmental characteristics. Journal: Economic Systems Research Pages: 284-302 Issue: 3 Volume: 26 Year: 2014 Month: 9 X-DOI: 10.1080/09535314.2014.934325 File-URL: http://hdl.handle.net/10.1080/09535314.2014.934325 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:26:y:2014:i:3:p:284-302 Template-Type: ReDIF-Article 1.0 Author-Name: Konstantin Stadler Author-X-Name-First: Konstantin Author-X-Name-Last: Stadler Author-Name: Kjartan Steen-Olsen Author-X-Name-First: Kjartan Author-X-Name-Last: Steen-Olsen Author-Name: Richard Wood Author-X-Name-First: Richard Author-X-Name-Last: Wood Title: THE 'REST OF THE WORLD' - ESTIMATING THE ECONOMIC STRUCTURE OF MISSING REGIONS IN GLOBAL MULTI-REGIONAL INPUT-OUTPUT TABLES Abstract: Incomplete data for the economic structure of numerous countries hamper the compilation of global multi-regional input-output (MRIO) tables. By themselves, most of these countries are of only limited importance for the global economy and incumbent environmental issues. Hence, in most recent global MRIO tables these countries are either roughly estimated or summarised in one rest of the world (RoW) region. Combining a wide range of countries, this RoW region may play a significant role in global economic and environmental accounts. We conceptualise the importance of RoW in several environmental footprint accounts and present algorithms to estimate the structure of RoW. The approach utilises the information of the economic structure within known parts of the MRIO table to estimate the unknown structure. Using this method, global warming potential and employment footprints remain stable irrespective of the chosen initial estimates, whereas natural land use footprints and individual product impacts vary significantly. Journal: Economic Systems Research Pages: 303-326 Issue: 3 Volume: 26 Year: 2014 Month: 9 X-DOI: 10.1080/09535314.2014.936831 File-URL: http://hdl.handle.net/10.1080/09535314.2014.936831 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:26:y:2014:i:3:p:303-326 Template-Type: ReDIF-Article 1.0 Author-Name: I�aki Arto Author-X-Name-First: I�aki Author-X-Name-Last: Arto Author-Name: Jos� M. Rueda-Cantuche Author-X-Name-First: Jos� M. Author-X-Name-Last: Rueda-Cantuche Author-Name: Glen P. Peters Author-X-Name-First: Glen P. Author-X-Name-Last: Peters Title: COMPARING THE GTAP-MRIO AND WIOD DATABASES FOR CARBON FOOTPRINT ANALYSIS Abstract: We explore two different worldwide multi-regional input-output (MRIO) databases (Global Trade Analysis Project-MRIO and World Input-Output Database) for the calculation of the global carbon footprint (CF) of nations. We start our analysis with a description of the main characteristics of the databases and then make a comparison between their main components. Then, we calculate the CF with both databases and identify (from a global perspective) the most relevant factors underlying their differences using structural decomposition analysis. On average, certain parts of both databases (e.g. intermediate uses and final demand) can be said to be similar for around 75% to 80%, with only a few elements in each part mainly driving the major differences. The divergences in the datasets of four countries explain almost 50% of the differences in the CF (the USA, China, Russia and India). Industry-wise, 50% of the differences can be explained by the divergences in electricity, refining and inland transport industries. Journal: Economic Systems Research Pages: 327-353 Issue: 3 Volume: 26 Year: 2014 Month: 9 X-DOI: 10.1080/09535314.2014.939949 File-URL: http://hdl.handle.net/10.1080/09535314.2014.939949 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:26:y:2014:i:3:p:327-353 Template-Type: ReDIF-Article 1.0 Author-Name: Arne Geschke Author-X-Name-First: Arne Author-X-Name-Last: Geschke Author-Name: Richard Wood Author-X-Name-First: Richard Author-X-Name-Last: Wood Author-Name: Keiichiro Kanemoto Author-X-Name-First: Keiichiro Author-X-Name-Last: Kanemoto Author-Name: Manfred Lenzen Author-X-Name-First: Manfred Author-X-Name-Last: Lenzen Author-Name: Daniel Moran Author-X-Name-First: Daniel Author-X-Name-Last: Moran Title: INVESTIGATING ALTERNATIVE APPROACHES TO HARMONISE MULTI-REGIONAL INPUT-OUTPUT DATA Abstract: Over recent years a small number of global multi-regional input-output (MRIO) databases were developed to describe the entire global economy at high sector detail. We investigate the differences that arise out of applying different construction procedures for two global MRIO databases: The EXIOBASE database, developed as part of the EU FP6 & 7 programs and the Eora database developed at the University of Sydney. The procedures used in EXIOBASE involve a high degree of interrogation and adjustment throughout the construction of the data set, whilst the Eora MRIO relies on single-step mathematical programming techniques and high-performance computing. We unravel the effect of the different approaches taken to develop the databases by undertaking a number of combinatorial experiments in which we exchange parts of the construction process between the EXIOBASE and Eora build pipelines. We conclude that Eora's highly automated data reconciliation approach produces MRIO databases that are of comparable quality to those constructed with EXIOBASE's multi-step approach. However, the reliability and robustness of the resulting MRIO database largely depend on the level of detail and reliability of the underlying raw data. Journal: Economic Systems Research Pages: 354-385 Issue: 3 Volume: 26 Year: 2014 Month: 9 X-DOI: 10.1080/09535314.2014.937069 File-URL: http://hdl.handle.net/10.1080/09535314.2014.937069 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:26:y:2014:i:3:p:354-385 Template-Type: ReDIF-Article 1.0 Author-Name: Richard Wood Author-X-Name-First: Richard Author-X-Name-Last: Wood Author-Name: Troy R. Hawkins Author-X-Name-First: Troy R. Author-X-Name-Last: Hawkins Author-Name: Edgar G. Hertwich Author-X-Name-First: Edgar G. Author-X-Name-Last: Hertwich Author-Name: Arnold Tukker Author-X-Name-First: Arnold Author-X-Name-Last: Tukker Title: HARMONISING NATIONAL INPUT-OUTPUT TABLES FOR CONSUMPTION-BASED ACCOUNTING - EXPERIENCES FROM EXIOPOL Abstract: Environmentally extended, multi-regional, input-output (MRIO) databases have emerged to fulfil the need for mapping the impacts of globalisation, following resource-intensive supply chains crossing country borders. EXIOBASE is one such data set designed for use in analysis relevant to resource use and European Union policy. It provides the most detailed harmonised sector classification in any MRIO and integrates data from a wide range of sources. We review the necessary steps in order to harmonise source data in MRIO databases, and describe methods to increase the product and industry detail of aggregate supply and use tables (SUTs) in order to provide a homogenous classification across countries that allows resource-specific modelling. We cover mathematical programming approaches used to reconcile data sets, and investigate some implications of reverse engineering symmetric input-output tables and disaggregating the SUTs. We focus particularly on the footprint multiplier at the product level, where policy formation is targeted. Journal: Economic Systems Research Pages: 387-409 Issue: 4 Volume: 26 Year: 2014 Month: 12 X-DOI: 10.1080/09535314.2014.960913 File-URL: http://hdl.handle.net/10.1080/09535314.2014.960913 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:26:y:2014:i:4:p:387-409 Template-Type: ReDIF-Article 1.0 Author-Name: Rosa Duarte Author-X-Name-First: Rosa Author-X-Name-Last: Duarte Author-Name: Sofiane Rebahi Author-X-Name-First: Sofiane Author-X-Name-Last: Rebahi Author-Name: Julio S�nchez-Ch�liz Author-X-Name-First: Julio Author-X-Name-Last: S�nchez-Ch�liz Author-Name: Cristina Sarasa Author-X-Name-First: Cristina Author-X-Name-Last: Sarasa Title: HOUSEHOLDS' BEHAVIOUR AND ENVIRONMENTAL EMISSIONS IN A REGIONAL ECONOMY Abstract: Households have significant demand-side potential to drive reductions in atmospheric emissions, including both direct and indirect emissions. Our analysis focuses on the behaviour of a regional economy (Aragon, Spain) and its impact on greenhouse gases (GHG) and sulphur dioxide (SO2). Using a CGE model, we simulate scenarios and evaluate the environmental impact of adopting changes considered in the Aragonese Climate Change and Clean Energy Strategy. Specifically, we analyse the impact of electricity savings and the promotion of public transport (bus or train) versus private car use. The results indicate that 1 MWh of saving in electricity consumption by households could reduce emissions of GHG by 0.112 kt of equivalent CO2 and 8.209 kg of SO2 with a shift in demand preferences and 0.022 kt of equivalent CO2 and 7.612 kg of SO2 with an efficiency improvement. Moreover, household changes in demand preferences regarding private/public transport, also contribute to reduce emissions. Journal: Economic Systems Research Pages: 410-430 Issue: 4 Volume: 26 Year: 2014 Month: 12 X-DOI: 10.1080/09535314.2014.903231 File-URL: http://hdl.handle.net/10.1080/09535314.2014.903231 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:26:y:2014:i:4:p:410-430 Template-Type: ReDIF-Article 1.0 Author-Name: Chen Lin Author-X-Name-First: Chen Author-X-Name-Last: Lin Author-Name: Jing Li Author-X-Name-First: Jing Author-X-Name-Last: Li Author-Name: Dezhi Li Author-X-Name-First: Dezhi Author-X-Name-Last: Li Title: THE POWER OF VISIBLE HANDS: AN ENVIRONMENTAL STRUCTURAL DECOMPOSITION ANALYSIS CONSIDERING THE PEOPLE'S DAILY EFFECT Abstract: As an organ of the Central Committee of the Communist Party of China, the People's Daily (PD) has a critical influence on China's policies and economy. This study examines the impact of the PD on China's economic structural changes and industry environmental performance. To separate the 'PD effect' from other effects in total sectoral CO2 emission changes, we propose a new variation of structural decomposition analysis using the frequencies of keywords employed in the PD. We use data from the PD for 2001 to 2011 and the Chinese input-output tables for 2002, 2005, 2007, and 2010. The results show that, on average, the PD effect explains about 11% of changes in total sectoral CO2 emissions. Specifically, the PD has a relatively strong impact on the mining and utility sectors, while its impact on the manufacturing sectors is relatively weak. Journal: Economic Systems Research Pages: 431-443 Issue: 4 Volume: 26 Year: 2014 Month: 12 X-DOI: 10.1080/09535314.2014.939612 File-URL: http://hdl.handle.net/10.1080/09535314.2014.939612 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:26:y:2014:i:4:p:431-443 Template-Type: ReDIF-Article 1.0 Author-Name: Tomohiro Okadera Author-X-Name-First: Tomohiro Author-X-Name-Last: Okadera Author-Name: Nobuhiro Okamoto Author-X-Name-First: Nobuhiro Author-X-Name-Last: Okamoto Author-Name: Masataka Watanabe Author-X-Name-First: Masataka Author-X-Name-Last: Watanabe Author-Name: Jaruwan Chontanawat Author-X-Name-First: Jaruwan Author-X-Name-Last: Chontanawat Title: REGIONAL WATER FOOTPRINTS OF THE YANGTZE RIVER: AN INTERREGIONAL INPUT-OUTPUT APPROACH Abstract: Recently, researchers have applied the multi-regional input-output (MRIO) approach to water footprint (WF) analysis. The concept of interregional input-output (R-MRIO) was developed to analyse regional issues. Researchers have concentrated on the development of global or international input-output (N-MRIO) tables. Using the N-MRIO and the R-MRIO approach allows the study of global and regional issues, respectively. The WF is an indicator influenced by trade among nations and regions. However, the treatment of imports in an R-MRIO approach differs in whether international imports are separated or combined. We evaluate the effects of the difference between these models and discuss policy implications for the Yangtze River, China. The WF calculated using the combined type model is 11% larger than that by the separated type model. This difference can be ascribed to international imports, mainly internal consumption and interregional trade. We find that this difference affects social equity in water-abundant areas. Journal: Economic Systems Research Pages: 444-462 Issue: 4 Volume: 26 Year: 2014 Month: 12 X-DOI: 10.1080/09535314.2014.934324 File-URL: http://hdl.handle.net/10.1080/09535314.2014.934324 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:26:y:2014:i:4:p:444-462 Template-Type: ReDIF-Article 1.0 Author-Name: Aleix Altimiras-Martin Author-X-Name-First: Aleix Author-X-Name-Last: Altimiras-Martin Title: ANALYSING THE STRUCTURE OF THE ECONOMY USING PHYSICAL INPUT-OUTPUT TABLES Abstract: Analyses using physical input-output tables (PIOTs) are key to understanding the physical metabolism of economies, since they relate production to the generation of emissions and use of resources. Two methods have been developed to calculate the primary resources and emissions associated with a given final demand. However, one of these alters the PIOT, revealing different technical coefficients and Leontief inverse matrices. Which method should be used for structural analysis? In this paper, I compare both methods, explain the structural differences between them and illustrate the latter through a backward linkage analysis. I find that only one method is suited to the analysis of the physical structure of the economy, since it comprehends both the production of goods and associated emissions. The method is identified as a new model capable of tracing by-products as final outputs. Finally, I generalise both methods to analyse PIOTs including several emission types. Journal: Economic Systems Research Pages: 463-485 Issue: 4 Volume: 26 Year: 2014 Month: 12 X-DOI: 10.1080/09535314.2014.950637 File-URL: http://hdl.handle.net/10.1080/09535314.2014.950637 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:26:y:2014:i:4:p:463-485 Template-Type: ReDIF-Article 1.0 Author-Name: Juan J. Monge Author-X-Name-First: Juan J. Author-X-Name-Last: Monge Author-Name: Henry L. Bryant Author-X-Name-First: Henry L. Author-X-Name-Last: Bryant Author-Name: David P. Anderson Author-X-Name-First: David P. Author-X-Name-Last: Anderson Title: DEVELOPMENT OF REGIONAL SOCIAL ACCOUNTING MATRICES WITH DETAILED AGRICULTURAL LAND RENT DATA AND IMPROVED VALUE-ADDED COMPONENTS FOR THE USA Abstract: We describe a method for creating social accounting matrices (SAMs) with detailed agricultural land rent data for any arbitrary subset of the 48 contiguous states in the USA. Data on land use and land rents from various public sources is merged with national accounts data. The method reorganizes the rental income of persons concept present in national accounts to payments to conventional primary factors of production. This method also reallocates portions of the indirect business tax account to the appropriate sales and import tax accounts. SAMs created using this method should be useful inputs into input-output or computable general equilibrium models explicitly representing a heterogeneous land market and analyzing the economic effects of agricultural, bioenergy, water and climate policies on land-use change, land rents, agricultural commodity markets, trade and households' welfare. The method's implementation is freely available, enabling others to rapidly create SAMs with their own desired region and sector aggregations. Journal: Economic Systems Research Pages: 486-510 Issue: 4 Volume: 26 Year: 2014 Month: 12 X-DOI: 10.1080/09535314.2014.889663 File-URL: http://hdl.handle.net/10.1080/09535314.2014.889663 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:26:y:2014:i:4:p:486-510 Template-Type: ReDIF-Article 1.0 Author-Name: Maaike C. Bouwmeester Author-X-Name-First: Maaike C. Author-X-Name-Last: Bouwmeester Author-Name: Jan Oosterhaven Author-X-Name-First: Jan Author-X-Name-Last: Oosterhaven Author-Name: Jos� M. Rueda-Cantuche Author-X-Name-First: Jos� M. Author-X-Name-Last: Rueda-Cantuche Title: A NEW SUT CONSOLIDATION METHOD TESTED BY A DECOMPOSITION OF VALUE ADDED AND CO2 EMBODIED IN EU27 EXPORTS Abstract: This paper develops a method to consolidate national supply-use tables (SUTs) into a single supra-regional SUT. The method deals with mirror trade statistics problems, such as the different valuation of imports and exports, and it corrects for double-counting re-exports. The method is tested by means of a decomposition of value added and CO2 emissions embodied in EU27 exports to third countries. When the national SUTs for the period 2000-2007 are used, neglecting intra-European Union spillover and feedback effects results in an underestimation of the embodied value added of 12-15%. Not consolidating the national tables properly leads to a further underestimation of 11-16%. With these underestimations removed, EU27 foreign exports still only explain around 11% of EU27 Gross Domestic Product, whereas they explain 17% of the EU27 CO2 emissions. Hence, the income benefits of these exports are, in relative terms, considerably smaller than their CO2 emission cost. Journal: Economic Systems Research Pages: 511-541 Issue: 4 Volume: 26 Year: 2014 Month: 12 X-DOI: 10.1080/09535314.2014.892473 File-URL: http://hdl.handle.net/10.1080/09535314.2014.892473 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:26:y:2014:i:4:p:511-541 Template-Type: ReDIF-Article 1.0 Author-Name: Manfred Lenzen Author-X-Name-First: Manfred Author-X-Name-Last: Lenzen Author-Name: Bart Los Author-X-Name-First: Bart Author-X-Name-Last: Los Title: Editors' Report Journal: Economic Systems Research Pages: 542-544 Issue: 4 Volume: 26 Year: 2014 Month: 12 X-DOI: 10.1080/09535314.2014.960912 File-URL: http://hdl.handle.net/10.1080/09535314.2014.960912 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:26:y:2014:i:4:p:542-544 Template-Type: ReDIF-Article 1.0 Author-Name: Henrique Morrone Author-X-Name-First: Henrique Author-X-Name-Last: Morrone Title: ASSESSING THE IMPACT OF DISTRIBUTIVE POLICIES ON THE BRAZILIAN ECONOMY USING AN SCGE MODEL Abstract: This study investigates the impact of macroeconomic policies on the Brazilian economy. We present a two-sector, open-economy, Structuralist Computable General Equilibrium model that distinguishes among three economic classes and assumes no financial sector. The Social Accounting Matrix for Brazil in 2006 serves as a benchmark for our model. We compare the medium-run effects of five experiments: an income transfer towards formal workers, a transfer to informal labour, an investment shock, an exchange rate depreciation, and a policy mix that combines (exchange rate) depreciation with income transfer towards modern (sector) workers. The policy measures reinforce each other in terms of their potential to enhance growth. Our findings underscore the importance of redistributive policies to foster economic expansion. Journal: Economic Systems Research Pages: 1-18 Issue: 1 Volume: 27 Year: 2015 Month: 3 X-DOI: 10.1080/09535314.2014.971101 File-URL: http://hdl.handle.net/10.1080/09535314.2014.971101 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:27:y:2015:i:1:p:1-18 Template-Type: ReDIF-Article 1.0 Author-Name: Tobias Maier Author-X-Name-First: Tobias Author-X-Name-Last: Maier Author-Name: Anke M�nnig Author-X-Name-First: Anke Author-X-Name-Last: M�nnig Author-Name: Gerd Zika Author-X-Name-First: Gerd Author-X-Name-Last: Zika Title: LABOUR DEMAND IN GERMANY BY INDUSTRIAL SECTOR, OCCUPATIONAL FIELD AND QUALIFICATION UNTIL 2025 - MODEL CALCULATIONS USING THE IAB/INFORGE MODEL Abstract: By means of a trend extrapolation of microcensus structures (undertaken by the German Federal Statistical Office) for the time period 1996-2007, the projections for labour demand by industrial sector which the IAB already has at its disposal can be transferred to demand by occupational field and subsequently by qualification level until 2025. The findings which have been claimed for some time now are upheld: production-related occupations will lose in significance, while further increases in employment particularly in occupations in the service sector are to be expected. Accordingly, the demand for personnel with a degree from a university or a university of applied sciences will go on rising, while the labour market opportunities for unskilled workers will continue to fall. However, vocational training or its academic counterparts still remain the dominant form of training in Germany. A continuing employment trend is to be expected here. Journal: Economic Systems Research Pages: 19-42 Issue: 1 Volume: 27 Year: 2015 Month: 3 X-DOI: 10.1080/09535314.2014.997678 File-URL: http://hdl.handle.net/10.1080/09535314.2014.997678 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:27:y:2015:i:1:p:19-42 Template-Type: ReDIF-Article 1.0 Author-Name: Raymond R. Tan Author-X-Name-First: Raymond R. Author-X-Name-Last: Tan Author-Name: Kathleen B. Aviso Author-X-Name-First: Kathleen B. Author-X-Name-Last: Aviso Author-Name: Michael Angelo B. Promentilla Author-X-Name-First: Michael Angelo B. Author-X-Name-Last: Promentilla Author-Name: Francesca Dianne B. Solis Author-X-Name-First: Francesca Dianne B. Author-X-Name-Last: Solis Author-Name: Krista Danielle S. Yu Author-X-Name-First: Krista Danielle S. Author-X-Name-Last: Yu Author-Name: Joost R. Santos Author-X-Name-First: Joost R. Author-X-Name-Last: Santos Title: A SHOCK ABSORPTION INDEX FOR INOPERABILITY INPUT-OUTPUT MODELS Abstract: Recent disasters have underscored the importance of enhancing resilience in economic systems. In this work, we propose a novel shock absorption index, which provides a measure of the ability of an economic system to tolerate disruptions. It is assumed that there are externally defined initial levels of system failure or disruption, as well as maximum allowable levels of inoperability for each sector. The shock absorption index is defined as the largest fraction of the anticipated initial disruption that can be absorbed by the predefined robustness limits. It provides an overall measure of the robustness of an economic system towards a disruptive event, which is driven by both the economic structure and the individual robustness of different sectors. The results of two case studies illustrate policy-making insights in identifying and prioritizing risk management strategies for critical systems. Journal: Economic Systems Research Pages: 43-59 Issue: 1 Volume: 27 Year: 2015 Month: 3 X-DOI: 10.1080/09535314.2014.922462 File-URL: http://hdl.handle.net/10.1080/09535314.2014.922462 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:27:y:2015:i:1:p:43-59 Template-Type: ReDIF-Article 1.0 Author-Name: Cuihong Yang Author-X-Name-First: Cuihong Author-X-Name-Last: Yang Author-Name: Erik Dietzenbacher Author-X-Name-First: Erik Author-X-Name-Last: Dietzenbacher Author-Name: Jiansuo Pei Author-X-Name-First: Jiansuo Author-X-Name-Last: Pei Author-Name: Xikang Chen Author-X-Name-First: Xikang Author-X-Name-Last: Chen Author-Name: Kunfu Zhu Author-X-Name-First: Kunfu Author-X-Name-Last: Zhu Author-Name: Zhipeng Tang Author-X-Name-First: Zhipeng Author-X-Name-Last: Tang Title: PROCESSING TRADE BIASES THE MEASUREMENT OF VERTICAL SPECIALIZATION IN CHINA Abstract: Vertical specialization (VS) is often measured by the import contents of the exports, using an input-output (I-O) framework. Half of China's exports are processing exports, which largely depend on imported intermediate inputs and tie up upstream as well as downstream trade partners. Thus, one would expect to find strong VS for China. Using the 'ordinary' I-O tables, however, this is not the case. Because the production of processing exports is only a small part of total production, the average input structure in the I-O table hides the typical features of processing exports. Using adapted, tripartite I-O tables (for 2002 and 2007) in which the processing exports have been singled out, indeed reveals the expected strong VS in China. Journal: Economic Systems Research Pages: 60-76 Issue: 1 Volume: 27 Year: 2015 Month: 3 X-DOI: 10.1080/09535314.2014.955463 File-URL: http://hdl.handle.net/10.1080/09535314.2014.955463 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:27:y:2015:i:1:p:60-76 Template-Type: ReDIF-Article 1.0 Author-Name: Thijs ten Raa Author-X-Name-First: Thijs Author-X-Name-Last: ten Raa Author-Name: Victoria Shestalova Author-X-Name-First: Victoria Author-X-Name-Last: Shestalova Title: SUPPLY-USE FRAMEWORK FOR INTERNATIONAL ENVIRONMENTAL POLICY ANALYSIS Abstract: The technical variation between countries in the production of goods and services, in terms of not only input coefficients, but also emission coefficients, creates scope for international trade to reduce environmental pressures. For this purpose we extend the theory of trade and the environment as to accommodate technical variation between countries in production and emissions. We use and steer close to the extended input and output tables, which include emission data. By treating environmental standards analogous to capital and labor capacity constraints, the aggregation problem for economic and environmental measures gets the same format as the well-understood aggregation problem for labor and capital. In a pilot application we determine the gains to free trade in products and emission permits. Journal: Economic Systems Research Pages: 77-94 Issue: 1 Volume: 27 Year: 2015 Month: 3 X-DOI: 10.1080/09535314.2014.922461 File-URL: http://hdl.handle.net/10.1080/09535314.2014.922461 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:27:y:2015:i:1:p:77-94 Template-Type: ReDIF-Article 1.0 Author-Name: Thijs ten Raa Author-X-Name-First: Thijs Author-X-Name-Last: ten Raa Author-Name: Victoria Shestalova Author-X-Name-First: Victoria Author-X-Name-Last: Shestalova Title: COMPLEMENTARITY IN INPUT-OUTPUT ANALYSIS AND STOCHASTICS Abstract: The complementarity between the quantity and value systems of input-output analysis is shown to be the basis of the complementarity problem approach to computable general equilibrium. The numerical superiority of the latter to the linear programming approach facilitates stochastic analysis of input-output scenarios. For the example where Kyoto targets are underachieved to uncertain degrees, confidence intervals are derived for the associated consumption reductions. Journal: Economic Systems Research Pages: 95-100 Issue: 1 Volume: 27 Year: 2015 Month: 3 X-DOI: 10.1080/09535314.2014.987109 File-URL: http://hdl.handle.net/10.1080/09535314.2014.987109 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:27:y:2015:i:1:p:95-100 Template-Type: ReDIF-Article 1.0 Author-Name: Simon Koesler Author-X-Name-First: Simon Author-X-Name-Last: Koesler Author-Name: Michael Schymura Author-X-Name-First: Michael Author-X-Name-Last: Schymura Title: SUBSTITUTION ELASTICITIES IN A CONSTANT ELASTICITY OF SUBSTITUTION FRAMEWORK - EMPIRICAL ESTIMATES USING NONLINEAR LEAST SQUARES Abstract: Elasticities are key parameters for any economic analysis. Using the World-Input-Output Database, we estimate substitution elasticities for a three-level nested constant elasticity of substitution KLEM production structure using up to date nonlinear least squares estimation procedures. This allows us for the first time to use one coherent data set for the estimation process. Furthermore, it gives us the opportunity to derive elasticities from the same data which researchers can use to calibrate their models. On the basis of our estimations, we demonstrate that the practice of using Cobb-Douglas or Leontief production functions in economic models must be rejected for the majority of sectors. We provide a comprehensive set of estimated substitution elasticities covering a wide range of sectors. Our results suggest that no substantial change in input substitutability takes place during the time period we consider. Moreover, there is no substantial variation in substitution elasticities across regions. Journal: Economic Systems Research Pages: 101-121 Issue: 1 Volume: 27 Year: 2015 Month: 3 X-DOI: 10.1080/09535314.2014.926266 File-URL: http://hdl.handle.net/10.1080/09535314.2014.926266 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:27:y:2015:i:1:p:101-121 Template-Type: ReDIF-Article 1.0 Author-Name: Henryk Gurgul Author-X-Name-First: Henryk Author-X-Name-Last: Gurgul Author-Name: Tomasz W�jtowicz Author-X-Name-First: Tomasz Author-X-Name-Last: W�jtowicz Title: ON THE ECONOMIC INTERPRETATION OF THE BR�DY CONJECTURE Abstract: The aim of the paper is to study the economic aspects of the Br�dy conjecture: an increase in the size of a (random) input matrix causes a decline in the ratio of its subdominant and dominant eigenvalues and implies faster convergence to equilibrium [Br�dy, A. (1997) The Second Eigenvalue of the Leontief Matrix. Economic Systems Research, 9, 253-258]. Simulation results provide evidence that this ratio depends inversely on the level of data aggregation and can therefore not be a good indicator of the speed of convergence of an economy to its equilibrium path. We show that this is consistent with findings based on actual input-output tables of EU member states. These results imply that theorems about the speed of convergence of random matrices are not useful in describing the cyclical dynamics of real economies. Journal: Economic Systems Research Pages: 122-131 Issue: 1 Volume: 27 Year: 2015 Month: 3 X-DOI: 10.1080/09535314.2014.979138 File-URL: http://hdl.handle.net/10.1080/09535314.2014.979138 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:27:y:2015:i:1:p:122-131 Template-Type: ReDIF-Article 1.0 Author-Name: Taelim Choi Author-X-Name-First: Taelim Author-X-Name-Last: Choi Title: UNDERSTANDING ENVIRONMENTAL RESPONSIBILITY OF CITIES AND EMISSIONS EMBODIED IN TRADE Abstract: The attribution of greenhouse gas (GHG) emissions embedded in interregionally traded products to either production or consumption regions is a key issue to the understanding of the global environmental responsibility of metropolitan areas. In this paper we identify GHG emissions for which metropolitan areas assume responsibility by allocating emissions embodied in import and export products to regions of either consumption or production in the cases of three US metropolitan areas. The case studies show that embodied emissions in both export and import products accounted for 63-73% of total GHG emissions directly and indirectly pertaining to these metropolitan economies. These findings suggest that an accounting method that incorporates emissions embodied in product trade has relevance to the development of local policies that govern actions ranging from redirecting metropolitan development patterns toward low carbon emissions to promoting sustainable consumption behavior, particularly those involving the collaboration of cities. Journal: Economic Systems Research Pages: 133-153 Issue: 2 Volume: 27 Year: 2015 Month: 6 X-DOI: 10.1080/09535314.2015.1012638 File-URL: http://hdl.handle.net/10.1080/09535314.2015.1012638 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:27:y:2015:i:2:p:133-153 Template-Type: ReDIF-Article 1.0 Author-Name: Carlos A. L�pez-Morales Author-X-Name-First: Carlos A. Author-X-Name-Last: L�pez-Morales Author-Name: Faye Duchin Author-X-Name-First: Faye Author-X-Name-Last: Duchin Title: ECONOMIC IMPLICATIONS OF POLICY RESTRICTIONS ON WATER WITHDRAWALS FROM SURFACE AND UNDERGROUND SOURCES Abstract: The appropriation of water for economic activities is limited by regional surface and underground endowments, and symptoms of environmentally unsustainable withdrawals are already visible in many regions of the world. In this paper we investigate the economic implications of water policy imposing source- and region-specific restrictions on water withdrawals taking the Mexican economy as a case study. We use an inter-regional input-output model of Mexico's hydro-economic regions to allocate production subject to the availability of water and other factors of production. Water sustainability requires a reduction of 7.5 km-super-3/yr of groundwater withdrawals, which is compensated by an increase of 3.4 km-super-3/yr of surface water, an expansion onto an additional 1.4 million hectares of rainfed land, and modifications in subnational patterns of food trade. This framework for evaluating scenarios describing sustainability-oriented water policies is readily applicable to other regions. Journal: Economic Systems Research Pages: 154-171 Issue: 2 Volume: 27 Year: 2015 Month: 6 X-DOI: 10.1080/09535314.2014.980224 File-URL: http://hdl.handle.net/10.1080/09535314.2014.980224 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:27:y:2015:i:2:p:154-171 Template-Type: ReDIF-Article 1.0 Author-Name: Chris Bachmann Author-X-Name-First: Chris Author-X-Name-Last: Bachmann Author-Name: Matthew J. Roorda Author-X-Name-First: Matthew J. Author-X-Name-Last: Roorda Author-Name: Chris Kennedy Author-X-Name-First: Chris Author-X-Name-Last: Kennedy Title: DEVELOPING A MULTI-SCALE MULTI-REGION INPUT-OUTPUT MODEL Abstract: Many efforts have recently been devoted to developing global multi-region input-output (GMRIO) models. Unfortunately, the scales of GMRIO models do not allow them to capture the heterogeneity of regions within a single country. Multi-scale models can provide more comprehensive analyses capable of capturing the interdependencies of the global economy while preserving regional differences. The primary objective of this research is to develop methods for integrating multi-region input-output data sets from multiple spatial scales into multi-scale multi-region input-output (MSMRIO) models. These methods result in models that may have unusual features such as non-square trade coefficient matrices and a mix of industry-by-industry and commodity-by-commodity technical coefficients. To demonstrate the feasibility of MSMRIO modelling, a Canada-centric model was developed. This model includes 47 countries and Canada's 13 subnational regions. A MSMRIO model provides a tool to analyse global issues with a more spatially detailed focus. Journal: Economic Systems Research Pages: 172-193 Issue: 2 Volume: 27 Year: 2015 Month: 6 X-DOI: 10.1080/09535314.2014.987730 File-URL: http://hdl.handle.net/10.1080/09535314.2014.987730 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:27:y:2015:i:2:p:172-193 Template-Type: ReDIF-Article 1.0 Author-Name: Leonie Wenz Author-X-Name-First: Leonie Author-X-Name-Last: Wenz Author-Name: Sven Norman Willner Author-X-Name-First: Sven Norman Author-X-Name-Last: Willner Author-Name: Alexander Radebach Author-X-Name-First: Alexander Author-X-Name-Last: Radebach Author-Name: Robert Bierkandt Author-X-Name-First: Robert Author-X-Name-Last: Bierkandt Author-Name: Jan Christoph Steckel Author-X-Name-First: Jan Christoph Author-X-Name-Last: Steckel Author-Name: Anders Levermann Author-X-Name-First: Anders Author-X-Name-Last: Levermann Title: REGIONAL AND SECTORAL DISAGGREGATION OF MULTI-REGIONAL INPUT-OUTPUT TABLES - A FLEXIBLE ALGORITHM Abstract: A common shortcoming of available multi-regional input-output (MRIO) data sets is their lack of regional and sectoral detail required for many research questions (e.g. in the field of disaster impact analysis). We present a simple algorithm to refine MRIO tables regionally and/or sectorally. By the use of proxy data, each MRIO flow in question is disaggregated into the corresponding sub-flows. This downscaling procedure is complemented by an adjustment rule ensuring that the sub-flows match the superordinate flow in sum. The approximation improves along several iteration steps. The algorithm unfolds its strength through the flexible combination of multiple, possibly incomplete proxy data sources. It is also flexible in a sense that any target sector and region resolution can be chosen. As an exemplary case we apply the algorithm to a regional and sectoral refinement of the Eora MRIO database. Journal: Economic Systems Research Pages: 194-212 Issue: 2 Volume: 27 Year: 2015 Month: 6 X-DOI: 10.1080/09535314.2014.987731 File-URL: http://hdl.handle.net/10.1080/09535314.2014.987731 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:27:y:2015:i:2:p:194-212 Template-Type: ReDIF-Article 1.0 Author-Name: Gerhard Streicher Author-X-Name-First: Gerhard Author-X-Name-Last: Streicher Author-Name: Robert Stehrer Author-X-Name-First: Robert Author-X-Name-Last: Stehrer Title: WHITHER PANAMA? CONSTRUCTING A CONSISTENT AND BALANCED WORLD SUT SYSTEM INCLUDING INTERNATIONAL TRADE AND TRANSPORT MARGINS Abstract: This paper extends work done within the World Input-Output Database project (WIOD), which compiled supply and use tables (SUTs) for 40 countries, covering about 85% of the world economy, by adding SUTs for the "rest of the world" (RoW), the approximately 15% of the world economy not covered by the 40 countries included in the WIOD database, ensuring a consistent and balanced world SUT system. The term "consistency" means that at the world level, all flows of goods and services balance, properly accounting for trade and transport services used in international trade (the "cif-fob difference"). This results in SUTs for the RoW which, together with bilateral trade matrices for all commodities (and together with the 40 national SUTs from the WIOD project), describe a consistent SUT system at the world level. Journal: Economic Systems Research Pages: 213-237 Issue: 2 Volume: 27 Year: 2015 Month: 6 X-DOI: 10.1080/09535314.2014.991777 File-URL: http://hdl.handle.net/10.1080/09535314.2014.991777 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:27:y:2015:i:2:p:213-237 Template-Type: ReDIF-Article 1.0 Author-Name: Zhuoying Zhang Author-X-Name-First: Zhuoying Author-X-Name-Last: Zhang Author-Name: Minjun Shi Author-X-Name-First: Minjun Author-X-Name-Last: Shi Author-Name: Zhao Zhao Author-X-Name-First: Zhao Author-X-Name-Last: Zhao Title: THE COMPILATION OF CHINA'S INTERREGIONAL INPUT-OUTPUT MODEL 2002 Abstract: The increasing economic interaction among various regions in China makes the construction of an interregional input-output table relevant for economic studies. This paper elaborates the model compilation procedure of the China Interregional Input-output model 2002. The key features of the model compilation include: (1) using representative commodities to estimate the interregional commodity flows of the primary industries; (2) adopting functions to estimate the decreasing interregional transportation of manufacturing sectors in relation to distance and (3) selecting appropriate indicators to estimate the interregional commodity flows of non-material sectors. This study is an initial attempt in interregional input-output modelling and might be helpful for economic studies at the levels of micro-regions. Journal: Economic Systems Research Pages: 238-256 Issue: 2 Volume: 27 Year: 2015 Month: 6 X-DOI: 10.1080/09535314.2015.1040740 File-URL: http://hdl.handle.net/10.1080/09535314.2015.1040740 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:27:y:2015:i:2:p:238-256 Template-Type: ReDIF-Article 1.0 Author-Name: Kijin Kim Author-X-Name-First: Kijin Author-X-Name-Last: Kim Author-Name: Kurt Kratena Author-X-Name-First: Kurt Author-X-Name-Last: Kratena Author-Name: Geoffrey J.D. Hewings Author-X-Name-First: Geoffrey J.D. Author-X-Name-Last: Hewings Title: THE EXTENDED ECONOMETRIC INPUT-OUTPUT MODEL WITH HETEROGENEOUS HOUSEHOLD DEMAND SYSTEM Abstract: This paper proposes an extension to the regional econometric input-output model (REIM) [Conway, R.S. (1990) The Washington Projection and Simulation Model: A Regional Interindustry Econometric Model. International Regional Science Review, 13, 141-165; Israilevich, P.R., G.J.D. Hewings, M. Sonis and G.R. Schindler (1997) Forecasting Structural Change with a Regional Econometric Input-Output Model. Journal of Regional Science, 37, 565-590]. We integrate a demand system with age and income parameters into the REIM. The extended model thus addresses concerns about the effects of household heterogeneity. The initial testing is conducted with a model for the Chicago metropolitan area. First, using aggregate expenditure data by income and age groups, the almost ideal demand system with group fixed effects is constructed. Next, the estimated demand system is linked to the REIM to reflect long-term changes in the age and income distribution of households. The long-range simulation from the extended model takes into account structural changes in expenditure type stemming from changing demographic composition. The extended model further broadens the scope of impact analysis under various scenarios associated with age and income changes. Journal: Economic Systems Research Pages: 257-285 Issue: 2 Volume: 27 Year: 2015 Month: 6 X-DOI: 10.1080/09535314.2014.991778 File-URL: http://hdl.handle.net/10.1080/09535314.2014.991778 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:27:y:2015:i:2:p:257-285 Template-Type: ReDIF-Article 1.0 Author-Name: Huiwen Wang Author-X-Name-First: Huiwen Author-X-Name-Last: Wang Author-Name: Cheng Wang Author-X-Name-First: Cheng Author-X-Name-Last: Wang Author-Name: Haitao Zheng Author-X-Name-First: Haitao Author-X-Name-Last: Zheng Author-Name: Haoyun Feng Author-X-Name-First: Haoyun Author-X-Name-Last: Feng Author-Name: Rong Guan Author-X-Name-First: Rong Author-X-Name-Last: Guan Author-Name: Wen Long Author-X-Name-First: Wen Author-X-Name-Last: Long Title: Updating Input-Output Tables with Benchmark Table Series Abstract: Numerous methods have been proposed to update input-output (I-O) tables. They rely on the assumption that the economic structure will not change significantly during the interpolation period. However, this assumption may not always hold, particularly for countries experiencing rapid development. This study attempts to combine forecasting with a matrix transformation technique (MTT) to provide a new perspective on updating I-O tables. Under the assumption that changes in the trend of an economic structure are statistically significant, the method extrapolates I-O tables by combining time series models with an MTT and proceeds with only the total value added during the target years. A simulation study and empirical analysis are conducted to compare the forecasting performance of the MTT to the Generalized RAS (GRAS) and Kuroda methods. The results show that the comprehensive performance of the MTT is better than the performance of the GRAS and Kuroda methods, as measured by the Standardized Total Percentage Error, Theil's U and Mean Absolute Percentage Error indices. Journal: Economic Systems Research Pages: 287-305 Issue: 3 Volume: 27 Year: 2015 Month: 9 X-DOI: 10.1080/09535314.2015.1053846 File-URL: http://hdl.handle.net/10.1080/09535314.2015.1053846 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:27:y:2015:i:3:p:287-305 Template-Type: ReDIF-Article 1.0 Author-Name: I�aki Arto Author-X-Name-First: I�aki Author-X-Name-Last: Arto Author-Name: Valeria Andreoni Author-X-Name-First: Valeria Author-X-Name-Last: Andreoni Author-Name: Jose Manuel Rueda Cantuche Author-X-Name-First: Jose Manuel Author-X-Name-Last: Rueda Cantuche Title: Global Impacts of the Automotive Supply Chain Disruption Following the Japanese Earthquake of 2011 Abstract: This paper provides an input-output method to estimate worldwide economic impacts generated by supply chain disruptions. The method is used to analyse global economic effects due to the disruptions in the automotive industry that followed the Japanese earthquake and the consequent tsunami and nuclear crisis of March 2011. By combining a mixed multi-regional input-output model, the World Input-Output Database and data at the factory level, the study quantifies the economic impacts of the disruptions broken down by country and industry. The results show that the global economic effect (in terms of value added) of this disruption amounted to US$139 billion. The most affected (groups of) countries were Japan (39%), the USA (25%), China (8%) and the European Union (7%). The most strongly affected industries were transport equipment (37%), other business activities (10%), basic and fabricated metals (8%), wholesale trade (7%) and financial intermediation (4%). Journal: Economic Systems Research Pages: 306-323 Issue: 3 Volume: 27 Year: 2015 Month: 9 X-DOI: 10.1080/09535314.2015.1034657 File-URL: http://hdl.handle.net/10.1080/09535314.2015.1034657 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:27:y:2015:i:3:p:306-323 Template-Type: ReDIF-Article 1.0 Author-Name: Cristian Mardones Author-X-Name-First: Cristian Author-X-Name-Last: Mardones Title: An Income Tax Increase to Fund Higher Education: A CGE Analysis for Chile Abstract: An increase in income taxes to fund education was one of the demands made by the social movements that emerged in Chile in 2011. Currently, the Chilean Congress is enacting a tax reform to raise money for higher education. This study aims to show the dynamic effects on the general equilibrium of the Chilean economy under two alternative approaches: a subsidy to lower the price of higher education (public and private), and greater spending on public higher education to reduce household payments for education. The social accounting matrix (SAM) used to calibrate the computable general equilibrium (CGE) model has 38 economic sectors, including the production structure of private education and public education. The study mainly concludes that a subsidy policy has significant advantages over increasing higher public education spending, regarding its effects on variables such as GDP, investment, and household incomes, while both policies have a similar effect on poverty and income distribution. Journal: Economic Systems Research Pages: 324-344 Issue: 3 Volume: 27 Year: 2015 Month: 9 X-DOI: 10.1080/09535314.2015.1030359 File-URL: http://hdl.handle.net/10.1080/09535314.2015.1030359 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:27:y:2015:i:3:p:324-344 Template-Type: ReDIF-Article 1.0 Author-Name: Esteban Fernandez Vazquez Author-X-Name-First: Esteban Author-X-Name-Last: Fernandez Vazquez Author-Name: Geoffrey J. D. Hewings Author-X-Name-First: Geoffrey J. D. Author-X-Name-Last: Hewings Author-Name: Carmen Ramos Carvajal Author-X-Name-First: Carmen Author-X-Name-Last: Ramos Carvajal Title: Adjustment of Input-Output Tables from Two Initial Matrices Abstract: The compilation of the information required to construct survey-based input-output (I-O) tables consumes resources and time to statistical agencies. Consequently, a number of non-survey techniques have been developed in the last decades to estimate I-O tables. These techniques usually depart from observable information on the row and column margins, and then the cells of the matrix are adjusted using as a priori information a matrix from a past period (updating) or an I-O table from the same time period (regionalization). This paper proposes the use of a composite cross-entropy approach that allows for introducing both types of a priori information. The suggested methodology is suitable to be applied only to matrices with semi-positive interior cells and margins. Numerical simulations and an empirical application are carried out, where an I-O table for the Euro Area is estimated with this method and the result is compared with the traditional projection techniques. Journal: Economic Systems Research Pages: 345-361 Issue: 3 Volume: 27 Year: 2015 Month: 9 X-DOI: 10.1080/09535314.2015.1007839 File-URL: http://hdl.handle.net/10.1080/09535314.2015.1007839 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:27:y:2015:i:3:p:345-361 Template-Type: ReDIF-Article 1.0 Author-Name: Nazmi Demir Author-X-Name-First: Nazmi Author-X-Name-Last: Demir Author-Name: Mehmet Nihat Solakoglu Author-X-Name-First: Mehmet Nihat Author-X-Name-Last: Solakoglu Author-Name: Ebru Guven Solakoglu Author-X-Name-First: Ebru Guven Author-X-Name-Last: Solakoglu Title: A Test for a Functioning Market Economy: Seton'S Eigenprices of Turkey Abstract: We use Seton's eigenprices to see if some evidence can be found in support of the European Commission's official statement that the Turkish economy can be considered as a functioning market economy. Given an input-output flows matrix, there is a unique set of prices for outputs and production factors compatible with final demand, generating demand for factors. The findings based on Turkey's most recent I-O table and comparable I-O matrices for Romania and Poland (two EU members) in 2005 show that price distortions were on average five times larger in Turkey. Hence, based on price distortions alone, there was no solid evidence in support of the statement that Turkey had a functioning market economy. Journal: Economic Systems Research Pages: 362-373 Issue: 3 Volume: 27 Year: 2015 Month: 9 X-DOI: 10.1080/09535314.2015.1071706 File-URL: http://hdl.handle.net/10.1080/09535314.2015.1071706 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:27:y:2015:i:3:p:362-373 Template-Type: ReDIF-Article 1.0 Author-Name: Tsutomu Harada Author-X-Name-First: Tsutomu Author-X-Name-Last: Harada Title: Changing Productive Relations, Linkage Effects, and Industrialization Abstract: This paper develops a multi-sector endogenous innovation model that is able to take changing productive relations among sectors into account. It is shown that while productivity and demand shocks do not induce any changes in productive relations and linkage effects, shocks in the productivity of R&D increase both backward and forward linkages. Key sectors are characterized as having high forward and backward linkages, which are consistent with the definition of key sectors in the existing empirical studies. However, vertical specialization generates not only sectors with high backward and low forward linkages, but also sectors with low backward and high forward linkages. As a consequence of this vertical specialization, the latter sectors become key sectors, in the sense that they have significant effects on business fluctuations. This implies that general-purpose technology sectors emerge, and sector-specific policies for these sectors play a critical role in economic development and growth. Journal: Economic Systems Research Pages: 374-390 Issue: 3 Volume: 27 Year: 2015 Month: 9 X-DOI: 10.1080/09535314.2015.1081876 File-URL: http://hdl.handle.net/10.1080/09535314.2015.1081876 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:27:y:2015:i:3:p:374-390 Template-Type: ReDIF-Article 1.0 Author-Name: Anthony T. Flegg Author-X-Name-First: Anthony T. Author-X-Name-Last: Flegg Author-Name: Yongming Huang Author-X-Name-First: Yongming Author-X-Name-Last: Huang Author-Name: Timo Tohmo Author-X-Name-First: Timo Author-X-Name-Last: Tohmo Title: Using Charm to Adjust for Cross-Hauling: The Case of the Province of Hubei, China Abstract: Data for the Chinese province of Hubei are used to assess the performance of Kronenberg's Cross-Hauling Adjusted Regionalization Method (CHARM), a method that takes explicit account of cross-hauling when constructing regional input-output tables. A key determinant of cross-hauling is held to be the heterogeneity of commodities, which is estimated using national data. However, contrary to the authors' findings for Finland, CHARM does not generate reliable estimates of Hubei's sectoral exports, imports and volume of trade, although it is more successful in estimating sectoral supply multipliers. The poor simulations of regional trade are attributed to the fact that Hubei is a relatively small region, where there is a large divergence between regional and national technology and pattern of final demand. The simulation errors are decomposed into components reflecting differences between regional and national technology, final demand and heterogeneity. The third component is found to be the least important of the three sources of error. Journal: Economic Systems Research Pages: 391-413 Issue: 3 Volume: 27 Year: 2015 Month: 9 X-DOI: 10.1080/09535314.2015.1043516 File-URL: http://hdl.handle.net/10.1080/09535314.2015.1043516 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:27:y:2015:i:3:p:391-413 Template-Type: ReDIF-Article 1.0 Author-Name: Jorge Gómez-Paredes Author-X-Name-First: Jorge Author-X-Name-Last: Gómez-Paredes Author-Name: Eiji Yamasue Author-X-Name-First: Eiji Author-X-Name-Last: Yamasue Author-Name: Hideyuki Okumura Author-X-Name-First: Hideyuki Author-X-Name-Last: Okumura Author-Name: Keiichi N. Ishihara Author-X-Name-First: Keiichi N. Author-X-Name-Last: Ishihara Title: THE LABOUR FOOTPRINT: A FRAMEWORK TO ASSESS LABOUR IN A COMPLEX ECONOMY Abstract: As addressing labour becomes crucial in the move towards sustainability, there is the need for assessment tools suitable for current complex economic systems. This article presents an input--output based framework (‘labour footprint’) for evaluating labour issues behind the production of different economic commodities, including entire supply chains. In line with the guidelines of the International Labour Organization, six labour issues are considered: collective bargaining, forced labour, child labour, gender inequality, hazardous work, and social security. This conceptual article sets to (a) define this footprint's labour dimensions, (b) cite relevant data sources, (c) describe its calculation, (d) illustrate its application through a case study, and (e) discuss this framework's relevance from ‘conscious consumption’, ‘supply chain responsibility’, and regulators' standpoints. Since it advances the evaluation of fundamental labour issues and the scope of multi-criteria analyses, this footprint may be a valuable tool for sustainability assessments. Journal: Economic Systems Research Pages: 415-439 Issue: 4 Volume: 27 Year: 2015 Month: 12 X-DOI: 10.1080/09535314.2014.998173 File-URL: http://hdl.handle.net/10.1080/09535314.2014.998173 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:27:y:2015:i:4:p:415-439 Template-Type: ReDIF-Article 1.0 Author-Name: Bram Edens Author-X-Name-First: Bram Author-X-Name-Last: Edens Author-Name: Rutger Hoekstra Author-X-Name-First: Rutger Author-X-Name-Last: Hoekstra Author-Name: Daan Zult Author-X-Name-First: Daan Author-X-Name-Last: Zult Author-Name: Oscar Lemmers Author-X-Name-First: Oscar Author-X-Name-Last: Lemmers Author-Name: Harry Wilting Author-X-Name-First: Harry Author-X-Name-Last: Wilting Author-Name: Ronghao Wu Author-X-Name-First: Ronghao Author-X-Name-Last: Wu Title: A METHOD TO CREATE CARBON FOOTPRINT ESTIMATES CONSISTENT WITH NATIONAL ACCOUNTS Abstract: Although multiregional input--output (MRIO) databases use data from national statistical offices, the reconciliation of various data sources results in significantly altered country data. This makes it problematic to use MRIO-based footprints for national policy-making. This paper develops a potential solution using the Netherlands as case study. The method ensures that the footprint is derived from an MRIO dataset (in our case the World Input--Output Database (WIOD)) that is made consistent with Dutch National accounts data. Furthermore, usage of microdata allows us to separate re-exports at the company level. The adjustment results in a foreign footprint in 2009 that is 22% lower than the original WIOD estimates and a significantly altered country allocation. We demonstrate that already in the data preparation phase due to the treatment of re-exports and margins, large differences arise with Dutch national statistics, which may help explain the variation in footprint estimates across MRIO databases. Journal: Economic Systems Research Pages: 440-457 Issue: 4 Volume: 27 Year: 2015 Month: 12 X-DOI: 10.1080/09535314.2015.1048428 File-URL: http://hdl.handle.net/10.1080/09535314.2015.1048428 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:27:y:2015:i:4:p:440-457 Template-Type: ReDIF-Article 1.0 Author-Name: Arkaitz Usubiaga Author-X-Name-First: Arkaitz Author-X-Name-Last: Usubiaga Author-Name: José Acosta-Fernández Author-X-Name-First: José Author-X-Name-Last: Acosta-Fernández Title: CARBON EMISSION ACCOUNTING IN MRIO MODELS: THE TERRITORY VS. THE RESIDENCE PRINCIPLE Abstract: Consumption-based CO2 emissions, which are commonly calculated by means of environmentally extended input--output analysis, are gaining wider recognition as a way to complement territorial emission inventories. Although their use has increased significantly in the last years, insufficient attention has been paid to the methodological soundness of the underlying environmental extension. This should follow the internationally agreed accounting rules of the System of Environmental-Economic Accounting, which addresses the activities undertaken by the residents of a country, independent from where these take place. Nonetheless, some footprint calculations use extensions that account for all the activities within the territory, which leads to methodological inconsistencies. Thus, this article introduces the most relevant conceptual differences between these accounting frameworks and shows the magnitude of the gap between them building on the data generated for the EXIOBASE model. It concludes that the differences are high for many countries and their magnitude is increasing over time. Journal: Economic Systems Research Pages: 458-477 Issue: 4 Volume: 27 Year: 2015 Month: 12 X-DOI: 10.1080/09535314.2015.1049126 File-URL: http://hdl.handle.net/10.1080/09535314.2015.1049126 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:27:y:2015:i:4:p:458-477 Template-Type: ReDIF-Article 1.0 Author-Name: Erik Dietzenbacher Author-X-Name-First: Erik Author-X-Name-Last: Dietzenbacher Author-Name: Ronald E. Miller Author-X-Name-First: Ronald E. Author-X-Name-Last: Miller Title: REFLECTIONS ON THE INOPERABILITY INPUT--OUTPUT MODEL Abstract: We argue that the inoperability input--output model is a straightforward -- albeit potentially very relevant -- application of the standard input--output model. In addition, we propose two less standard input--output approaches as alternatives to take into consideration when analyzing the effects of disasters or disruptions. Journal: Economic Systems Research Pages: 478-486 Issue: 4 Volume: 27 Year: 2015 Month: 12 X-DOI: 10.1080/09535314.2015.1052375 File-URL: http://hdl.handle.net/10.1080/09535314.2015.1052375 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:27:y:2015:i:4:p:478-486 Template-Type: ReDIF-Article 1.0 Author-Name: Johannes Többen Author-X-Name-First: Johannes Author-X-Name-Last: Többen Author-Name: Tobias Heinrich Kronenberg Author-X-Name-First: Tobias Heinrich Author-X-Name-Last: Kronenberg Title: CONSTRUCTION OF MULTI-REGIONAL INPUT--OUTPUT TABLES USING THE CHARM METHOD Abstract: Subnational multi-regional input--output tables (IOT) are important tools for studying interregional socio-economic and/or environmental interrelations that help to address a wide range of current societal, ecological and economic challenges. However, the lack of subnational input--output data is a major obstacle which leads to a wide use of non-survey methods. Like other non-survey methods, the cross-hauling adjusted regionalization method (CHARM) was originally developed for the construction of single-regional IOT. In this paper, we extend CHARM to the case of bi- and multi-regional IOT. We find that the original CHARM formula has two limitations that are also of great importance for the single-regional case: First, cross-hauling in interregional trade is implicitly set to zero and, second, accounting balances may be violated owing to structural differences between the regional and national economies. We present a modified formula addressing these issues and examine its performance in terms of a case study. Journal: Economic Systems Research Pages: 487-507 Issue: 4 Volume: 27 Year: 2015 Month: 12 X-DOI: 10.1080/09535314.2015.1091765 File-URL: http://hdl.handle.net/10.1080/09535314.2015.1091765 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:27:y:2015:i:4:p:487-507 Template-Type: ReDIF-Article 1.0 Author-Name: Esteban Fernandez-Vazquez Author-X-Name-First: Esteban Author-X-Name-Last: Fernandez-Vazquez Title: EMPIRICAL ESTIMATION OF NON-LINEAR INPUT--OUTPUT MODELS: AN ENTROPY ECONOMETRICS APPROACH Abstract: Despite theoretical advances, non-linear input--output models have been empirically applied only to a limited extent. This is mainly due to the fact that the number of parameters to be estimated is much higher than the number of available data points. Taking advantage of the recent proliferation of input--output databases and by applying an estimation strategy that relies on entropy econometrics, this paper suggests a way to estimate the parameters that characterize non-linear relationships between inputs and output. This non-linear modelling allows for considering time-specific input coefficients, instead of fixed ones. Several types of multipliers can be derived from this non-linear model, and the proposed generalized maximum entropy (GME) estimator allows estimating them from time series or cross-sectional datasets of input--output tables. The proposed GME technique is illustrated by means of an empirical application that estimates the parameters that characterize a non-linear input--output model for the Spanish economy over the period 1995--2011. Journal: Economic Systems Research Pages: 508-524 Issue: 4 Volume: 27 Year: 2015 Month: 12 X-DOI: 10.1080/09535314.2015.1102715 File-URL: http://hdl.handle.net/10.1080/09535314.2015.1102715 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:27:y:2015:i:4:p:508-524 Template-Type: ReDIF-Article 1.0 Author-Name: Clemente Polo Author-X-Name-First: Clemente Author-X-Name-Last: Polo Author-Name: Raimundo Viejo Author-X-Name-First: Raimundo Author-X-Name-Last: Viejo Title: ON THE ACCURACY OF CGE FORECASTS IN EXPANSION AND RECESSION: SPAIN 1990--1997 Abstract: A recursive dynamic disaggregated computable general equilibrium model of the Spanish economy is used to compare the model predictions of endogenous variables with their observed values over the period 1991--1997. It includes 12 producers, 12 households, government and 2 external sectors. There are four types of labour and real wages that depend on unemployment rates. Private investment is determined by private savings and public and external surpluses. Domestic products and imports are imperfect substitutes. All exogenous variables and tax parameters are updated every year with the best available information. The model provides rather accurate predictions in 1991, a normal year, but it underestimates the intensity of the 1992--1993 recession. It also predicts dramatic reversals of trade balances in response to devaluations. These results suggest both that investment savings-driven models provide useful insights in the medium term but underestimate the consequences of downturns, and that Armington's elascitities typically assumed may be too large. Journal: Economic Systems Research Pages: 525-542 Issue: 4 Volume: 27 Year: 2015 Month: 12 X-DOI: 10.1080/09535314.2015.1102126 File-URL: http://hdl.handle.net/10.1080/09535314.2015.1102126 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:27:y:2015:i:4:p:525-542 Template-Type: ReDIF-Article 1.0 Author-Name: Jeffrey C. Peters Author-X-Name-First: Jeffrey C. Author-X-Name-Last: Peters Author-Name: Thomas W. Hertel Author-X-Name-First: Thomas W. Author-X-Name-Last: Hertel Title: Matrix balancing with unknown total costs: preserving economic relationships in the electric power sector Abstract: Many preferred matrix balancing methods suffer limitations when total costs (i.e. column sums) are unknown or uncertain. If the total cost (column) constraint is relaxed, economic relationships both between inputs to and/or amongst the sub-sectors may not be preserved (i.e. cost structure and row share, respectively). These relationships are significant in modeling, where production behavior depends on relative costs. This paper presents a share preserving cross-entropy (SPCE) approach which targets economic relationships directly and allows the column constraint to be relaxed. Further, the SPCE solution is identical to the RAS solution when the column constraint is imposed. This cross-entropy formulation complements an existing sum squared error-type approach. The two matrix balancing methods are demonstrated with a disaggregation of the electric power industry where only unit input costs are known with greater certainty. There is a clear trade-off between preserving economic relationships versus the column totals when compared to their column-constrained counterparts. Journal: Economic Systems Research Pages: 1-20 Issue: 1 Volume: 28 Year: 2016 Month: 3 X-DOI: 10.1080/09535314.2015.1124068 File-URL: http://hdl.handle.net/10.1080/09535314.2015.1124068 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:28:y:2016:i:1:p:1-20 Template-Type: ReDIF-Article 1.0 Author-Name: Anthony T. Flegg Author-X-Name-First: Anthony T. Author-X-Name-Last: Flegg Author-Name: Leonardo J. Mastronardi Author-X-Name-First: Leonardo J. Author-X-Name-Last: Mastronardi Author-Name: Carlos A. Romero Author-X-Name-First: Carlos A. Author-X-Name-Last: Romero Title: Evaluating the FLQ and AFLQ formulae for estimating regional input coefficients: empirical evidence for the province of Córdoba, Argentina Abstract: This paper uses survey-based data of the Argentinian province of Córdoba to conduct an empirical test of the performance of the Flegg's location quotient (FLQ) and augmented FLQ (AFLQ) formulae for estimating regional input coefficients. A comparison is made with conventional methods based on location quotients. The possibility of using prior information about the extent of self-sufficiency of particular sectors is explored. The empirical work employs a range of statistical criteria with contrasting properties, and examines performance in terms of each method's ability to estimate regional input coefficients, output multipliers and imports. Particular attention is paid to the problem of choosing a value for the unknown parameter δ in the FLQ and AFLQ formulae. These formulae are found to give the best overall results of the non-survey methods considered in the paper. However, the AFLQ typically produces slightly more accurate results than the FLQ, in line with the findings of previous studies. Journal: Economic Systems Research Pages: 21-37 Issue: 1 Volume: 28 Year: 2016 Month: 3 X-DOI: 10.1080/09535314.2015.1103703 File-URL: http://hdl.handle.net/10.1080/09535314.2015.1103703 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:28:y:2016:i:1:p:21-37 Template-Type: ReDIF-Article 1.0 Author-Name: Roberto Roson Author-X-Name-First: Roberto Author-X-Name-Last: Roson Author-Name: Martina Sartori Author-X-Name-First: Martina Author-X-Name-Last: Sartori Title: Input--output linkages and the propagation of domestic productivity shocks: assessing alternative theories with stochastic simulation Abstract: Relatively small sectoral productivity shocks could lead to sizable macroeconomic variability. Whereas most contributions in the literature analyze the issue of aggregate sensitivity using simple general equilibrium models, a novel approach is proposed in this paper, based on stochastic simulations with a global computable general equilibrium model. We find that the variability of the GDP, induced by sectoral shocks, is basically determined by the degree of industrial concentration as measured by the Herfindahl index of industrial value added. The degree of centrality in inter-industrial connectivity, measured by the standard deviation of second-order degrees, is mildly significant, but it is also correlated with the industrial concentration index. After controlling for the correlation effect, we find that connectivity turns out to be statistically significant, although less so than granularity. Journal: Economic Systems Research Pages: 38-54 Issue: 1 Volume: 28 Year: 2016 Month: 3 X-DOI: 10.1080/09535314.2015.1132194 File-URL: http://hdl.handle.net/10.1080/09535314.2015.1132194 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:28:y:2016:i:1:p:38-54 Template-Type: ReDIF-Article 1.0 Author-Name: Daria Ciriaci Author-X-Name-First: Daria Author-X-Name-Last: Ciriaci Author-Name: Daniela Palma Author-X-Name-First: Daniela Author-X-Name-Last: Palma Title: Structural change and blurred sectoral boundaries: assessing the extent to which knowledge-intensive business services satisfy manufacturing final demand in Western countries Abstract: This paper focuses on the vertical integration of knowledge-intensive business services (KIBS) into manufacturing sectors, using a subsystem approach to input--output analysis. It aims at correctly assessing the process of structural change that has occurred in the four main European countries (France, Germany, Italy and the UK) over time (1995--2005). It does not focus on KIBS sectors per se, but on their function as carriers and sources of knowledge which influences the performance of sectors, value chains and clusters across industries and within countries. The analysis shows that KIBS’ contribution to satisfying the final demand of manufacturing is in general largely underestimated; that KIBS vertical integration into manufacturing has increased over time in all the countries investigated except the UK; and that the extent to which manufacturing sectors outsource to KIBS is significantly affected by their technological intensity. Journal: Economic Systems Research Pages: 55-77 Issue: 1 Volume: 28 Year: 2016 Month: 3 X-DOI: 10.1080/09535314.2015.1101370 File-URL: http://hdl.handle.net/10.1080/09535314.2015.1101370 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:28:y:2016:i:1:p:55-77 Template-Type: ReDIF-Article 1.0 Author-Name: Kjartan Steen-Olsen Author-X-Name-First: Kjartan Author-X-Name-Last: Steen-Olsen Author-Name: Anne Owen Author-X-Name-First: Anne Author-X-Name-Last: Owen Author-Name: John Barrett Author-X-Name-First: John Author-X-Name-Last: Barrett Author-Name: Dabo Guan Author-X-Name-First: Dabo Author-X-Name-Last: Guan Author-Name: Edgar G. Hertwich Author-X-Name-First: Edgar G. Author-X-Name-Last: Hertwich Author-Name: Manfred Lenzen Author-X-Name-First: Manfred Author-X-Name-Last: Lenzen Author-Name: Thomas Wiedmann Author-X-Name-First: Thomas Author-X-Name-Last: Wiedmann Title: Accounting for value added embodied in trade and consumption: an intercomparison of global multiregional input--output databases Abstract: Global multiregional input--output (MRIO) tables constitute detailed accounts of the economic activity worldwide. Global trade models based on MRIO tables are being used to calculate important economic and environmental indicators such as value added in trade or the carbon footprint of nations. Such applications are highly relevant in international trade and climate policy negotiations, and consequently MRIO model results are being scrutinized for their accuracy and reproducibility. We investigate the variation in results from three major MRIO databases by comparing underlying economic data and territorial and consumption-based results across databases. Although global value-added accounts were similar across databases, we find some significant differences at the level of individual countries and sectors. Model disagreement was relatively stable from the territorial to the consumption perspective. Pairwise matrix comparison statistics indicated that the Global Trade Analysis Project and World Input-Output Database MRIO tables were overall more similar to each other than either was to the Eora database. Journal: Economic Systems Research Pages: 78-94 Issue: 1 Volume: 28 Year: 2016 Month: 3 X-DOI: 10.1080/09535314.2016.1141751 File-URL: http://hdl.handle.net/10.1080/09535314.2016.1141751 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:28:y:2016:i:1:p:78-94 Template-Type: ReDIF-Article 1.0 Author-Name: Ferran Portella-Carbó Author-X-Name-First: Ferran Author-X-Name-Last: Portella-Carbó Title: Effects of international trade on domestic employment: an application of a global multiregional input--output supermultiplier model (1995--2011) Abstract: The effects on domestic employment of international trade and the globalisation of supply chains are as politically controversial as they are empirically inconclusive. To estimate them we extend the global multiregional input--output framework by endogenising demand for both domestic and imported intermediates, private business investment and household non-durable consumption -- or equivalently, we generalise the supermultiplier formula. The model accounts, in particular, for the employment consequences of economic integration and those channelled through integration. We estimate these foreign sector effects alongside those of domestic origin using a recursive hierarchical structural decomposition analysis and statistics from the World Input--Output Database and National Accounts that cover years 1995--2011. Focusing on Spain, Italy, France, Germany, the UK, the US, Japan and China we answer the following questions: To what extent did international linkages deriving from international trade affect domestic employment? Did domestic employment benefit from economic integration? Journal: Economic Systems Research Pages: 95-117 Issue: 1 Volume: 28 Year: 2016 Month: 3 X-DOI: 10.1080/09535314.2016.1142429 File-URL: http://hdl.handle.net/10.1080/09535314.2016.1142429 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:28:y:2016:i:1:p:95-117 Template-Type: ReDIF-Article 1.0 Author-Name: Manfred Lenzen Author-X-Name-First: Manfred Author-X-Name-Last: Lenzen Title: Structural analyses of energy use and carbon emissions -- an overview Journal: Economic Systems Research Pages: 119-132 Issue: 2 Volume: 28 Year: 2016 Month: 6 X-DOI: 10.1080/09535314.2016.1170991 File-URL: http://hdl.handle.net/10.1080/09535314.2016.1170991 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:28:y:2016:i:2:p:119-132 Template-Type: ReDIF-Article 1.0 Author-Name: Kirsten S. Wiebe Author-X-Name-First: Kirsten S. Author-X-Name-Last: Wiebe Title: The impact of renewable energy diffusion on European consumption-based emissions Abstract: The amount of carbon embedded in the final consumption of goods and services in a country or region depends on the amount of goods and services consumed and the emission intensity of the production processes along global production chains. A reduction of consumption-based emissions can be achieved from both sides, a reduction in total consumption and a reduction in the emission intensity of the production processes. The power sector is one of the most carbon intensive industries along global production chains and the global deployment of renewable power generation technologies (RPGTs) is one possibility to significantly reduce emissions in this industry. This paper combines three different strands of literature, multi-regional input--output analysis, dynamic energy--economy--environment models and technological change in renewable energy (RE), to model the impact of the global diffusion of renewable energies on European consumption-based emissions. The global diffusion of RE technologies (photovoltaic and wind) depends on the development of technology costs, which are modeled using learning curves. With increasing deployment of renewables within the EU as well as increasing RD&D efforts, the EU can achieve an accelerated costs decrease for these technologies, thus fostering deployment of RPGTs at a global scale through the effect of decreasing costs. This behavior indirectly influences the electricity mix abroad, making it less carbon intensive, so that consumption-based emissions of the EU decrease. Journal: Economic Systems Research Pages: 133-150 Issue: 2 Volume: 28 Year: 2016 Month: 6 X-DOI: 10.1080/09535314.2015.1113936 File-URL: http://hdl.handle.net/10.1080/09535314.2015.1113936 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:28:y:2016:i:2:p:133-150 Template-Type: ReDIF-Article 1.0 Author-Name: Rutger Hoekstra Author-X-Name-First: Rutger Author-X-Name-Last: Hoekstra Author-Name: Bernhard Michel Author-X-Name-First: Bernhard Author-X-Name-Last: Michel Author-Name: Sangwon Suh Author-X-Name-First: Sangwon Author-X-Name-Last: Suh Title: The emission cost of international sourcing: using structural decomposition analysis to calculate the contribution of international sourcing to CO2-emission growth Abstract: The effect of changes in trade patterns, particularly increasing international sourcing, on global CO2-emissions growth has yet to be clearly understood. In this paper, we estimate the emission cost of sourcing (ECS), which originates from replacing domestic products by imports from countries with more CO2-intensive technologies. Using a structural decomposition analysis, we find that changes in sourcing patterns between 1995 and 2007 contribute (1) to reducing territorial emissions in high-wage countries (70% of their territorial emissions growth) and (2) to increasing territorial emissions in low-wage countries (30% of their territorial emissions increase). The net global effect, the ECS, amounts to 18% of total global CO2-emissions growth. Our results call the climate change policies based on territorial principles into question given that they disregard that differences in emission intensities between countries contribute to raising global emissions. In contrast, policies fostering the transfer of cleaner technologies to low-wage countries decrease the ECS. Journal: Economic Systems Research Pages: 151-167 Issue: 2 Volume: 28 Year: 2016 Month: 6 X-DOI: 10.1080/09535314.2016.1166099 File-URL: http://hdl.handle.net/10.1080/09535314.2016.1166099 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:28:y:2016:i:2:p:151-167 Template-Type: ReDIF-Article 1.0 Author-Name: Arunima Malik Author-X-Name-First: Arunima Author-X-Name-Last: Malik Author-Name: Jun Lan Author-X-Name-First: Jun Author-X-Name-Last: Lan Title: The role of outsourcing in driving global carbon emissions Abstract: Globalisation has narrowed the gap between producers and consumers of goods and services. The linkages between international trade and carbon dioxide (CO2) emissions have started to be recognised, yet the extent of outsourcing of emissions across nations is unknown. Filling this gap in knowledge is critical for designing effective policy mechanisms for assigning responsibility for reductions in emissions. Here we present a structural decomposition analysis of global trends in outsourcing of emissions from 1990 to 2010 for 186 individual countries. To this end, we disaggregate total CO2 emissions for each country into contributions from the domestic economy and international trade. This allows us to unveil outsourcing trends for all nations confirming a world-wide shifting of emissions-intensive production across borders. We categorise nations into “outsourcers” -- countries that outsource carbon-intensive production to so-called contractor nations. Our detailed assessment of the commodity content of global outsourcing flows reveals interesting insights about the trade of carbon-intensive commodities. Journal: Economic Systems Research Pages: 168-182 Issue: 2 Volume: 28 Year: 2016 Month: 6 X-DOI: 10.1080/09535314.2016.1172475 File-URL: http://hdl.handle.net/10.1080/09535314.2016.1172475 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:28:y:2016:i:2:p:168-182 Template-Type: ReDIF-Article 1.0 Author-Name: Haiyan Zhang Author-X-Name-First: Haiyan Author-X-Name-Last: Zhang Author-Name: Michael L. Lahr Author-X-Name-First: Michael L. Author-X-Name-Last: Lahr Author-Name: Jun Bi Author-X-Name-First: Jun Author-X-Name-Last: Bi Title: Challenges of green consumption in China: a household energy use perspective Abstract: To encourage economic progress, China's government has been pushing domestic consumption as a substitute for its waning growth in investment and exports. It has also been promoting greener policies for growth, of which green consumerism is a prime component. By examining the economy through the lens of household energy consumption, this paper lays out the challenges the nation must overcome through green consumption. We explore the trends in household energy use and decompose energy used indirectly by households into six factors: changes in total population, urbanization rate, energy efficiency, interindustry input mix, household consumption preferences, and per capita household consumption level. Doing so yields insights into how progress in industrial technology, household income, urbanization, and lifestyles has affected energy use in the production of goods and services used by households. It also offers policy suggestions on how China might guide lifestyle changes to effect green consumption. Journal: Economic Systems Research Pages: 183-201 Issue: 2 Volume: 28 Year: 2016 Month: 6 X-DOI: 10.1080/09535314.2016.1144563 File-URL: http://hdl.handle.net/10.1080/09535314.2016.1144563 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:28:y:2016:i:2:p:183-201 Template-Type: ReDIF-Article 1.0 Author-Name: Zeus Guevara Author-X-Name-First: Zeus Author-X-Name-Last: Guevara Author-Name: João F. D. Rodrigues Author-X-Name-First: João F. D. Author-X-Name-Last: Rodrigues Title: Structural transitions and energy use: a decomposition analysis of Portugal 1995--2010 Abstract: The Portuguese energy sector changed substantially during the period 1995--2010, with the introduction of natural gas and a larger renewable energy production. During the same period, the country also continued the shift to a service economy. By 2005, these two transitions led to a large increase in primary energy use (PEU), followed by a significant decline until 2010. The goal of this paper is to identify the main driving factors of changes in the Portuguese PEU through structural decomposition analysis. To do so we build a novel hybrid model with a detailed description of the energy sector in physical units, and a coarser description of the rest of the economy in monetary units. The results show that the main drivers were final demand (increasing PEU) and the direct energy intensity (decreasing PEU); while the energy and economic transitions also contributed to decrease PEU, although to a lesser extent. Journal: Economic Systems Research Pages: 202-223 Issue: 2 Volume: 28 Year: 2016 Month: 6 X-DOI: 10.1080/09535314.2016.1157456 File-URL: http://hdl.handle.net/10.1080/09535314.2016.1157456 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:28:y:2016:i:2:p:202-223 Template-Type: ReDIF-Article 1.0 Author-Name: Ning Chang Author-X-Name-First: Ning Author-X-Name-Last: Chang Author-Name: Michael L. Lahr Author-X-Name-First: Michael L. Author-X-Name-Last: Lahr Title: Changes in China’s production-source CO2 emissions: insights from structural decomposition analysis and linkage analysis Abstract: This paper presents an input--output based methodology -- structural decomposition analysis (SDA) plus linkage analysis, for identifying the key factors and sectors that affected production-source CO2 emissions in China. The proposed methodology extends the SDA to account for the import substitution effect within an open economy such as China and incorporates the emission linkage by which the effect of the input mix on CO2 emissions can be understood in depth. Empirical results indicate that, between 2005 and 2010, improving emission intensity and input intensity had helped to reduce CO2 emissions; meanwhile, capital investment explained the majority of the increases in CO2 emissions brought about by final demand, and import substitution was also observed to increase CO2 emissions. Moreover, nine key emission sectors have been identified, and in this regard, domestic inputs became more CO2-intensive in 2010 than it was in 2005. Journal: Economic Systems Research Pages: 224-242 Issue: 2 Volume: 28 Year: 2016 Month: 6 X-DOI: 10.1080/09535314.2016.1172476 File-URL: http://hdl.handle.net/10.1080/09535314.2016.1172476 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:28:y:2016:i:2:p:224-242 Template-Type: ReDIF-Article 1.0 Author-Name: Anne Owen Author-X-Name-First: Anne Author-X-Name-Last: Owen Author-Name: Richard Wood Author-X-Name-First: Richard Author-X-Name-Last: Wood Author-Name: John Barrett Author-X-Name-First: John Author-X-Name-Last: Barrett Author-Name: Andrew Evans Author-X-Name-First: Andrew Author-X-Name-Last: Evans Title: Explaining value chain differences in MRIO databases through structural path decomposition Abstract: Many multiregional input--output (MRIO) databases are used to calculate consumption-based accounts. Results feature in climate policy discussion on emissions reduction responsibilities; yet studies show that outcomes produced by each database differ. This paper compares the emissions associated with value chains from Eora, EXIOBASE, GTAP and WIOD. Structural path analysis identifies the largest paths in each database and the differences in common paths are calculated. For the top 100 value chain paths that contain the largest difference, structural path decomposition is used to identify the contribution each part of the value chain makes towards the difference. The results identify and quantify key flows that are the cause of difference in the databases. From these, we can conclude that key MRIO database construction decisions, such as using the residence or territorial principle for emissions allocation and whether energy spends are reallocated based on physical data, are the major causes of differences. Journal: Economic Systems Research Pages: 243-272 Issue: 2 Volume: 28 Year: 2016 Month: 6 X-DOI: 10.1080/09535314.2015.1135309 File-URL: http://hdl.handle.net/10.1080/09535314.2015.1135309 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:28:y:2016:i:2:p:243-272 Template-Type: ReDIF-Article 1.0 Author-Name: Shiwei Yu Author-X-Name-First: Shiwei Author-X-Name-Last: Yu Author-Name: Shuhong Zheng Author-X-Name-First: Shuhong Author-X-Name-Last: Zheng Author-Name: Guizhi Ba Author-X-Name-First: Guizhi Author-X-Name-Last: Ba Author-Name: Yi-Ming Wei Author-X-Name-First: Yi-Ming Author-X-Name-Last: Wei Title: Can China realise its energy-savings goal by adjusting its industrial structure? Abstract: To investigate whether China can realise its energy-savings goal by 2020 through adjustments to its industrial structure, this study proposes a dynamic input--output multi-objective optimisation model. According to this model, the objectives to be achieved include the maximum gross domestic product and employment, and the minimum energy consumption, where the constraints are the sectoral dynamic input--output balance, labour and energy supply, and sectoral production capacity. The four best solutions are screened from the Pareto-optimal front. The study findings show that the energy intensities in 2020 would decrease by 42.8%, 43.5%, 42.9%, and 43.4% in the four scenarios when compared to their 2002 levels. This means that China can fully achieve its planned energy-savings target for 2020. In order to ensure that the industrial structure is optimised for the future, sectoral capital investments should be regulated by China's government and efforts to improve energy efficiency should be maintained. Journal: Economic Systems Research Pages: 273-293 Issue: 2 Volume: 28 Year: 2016 Month: 6 X-DOI: 10.1080/09535314.2015.1102714 File-URL: http://hdl.handle.net/10.1080/09535314.2015.1102714 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:28:y:2016:i:2:p:273-293 Template-Type: ReDIF-Article 1.0 Author-Name: Ignacio Cazcarro Author-X-Name-First: Ignacio Author-X-Name-Last: Cazcarro Author-Name: Carlos A. López-Morales Author-X-Name-First: Carlos A. Author-X-Name-Last: López-Morales Author-Name: Faye Duchin Author-X-Name-First: Faye Author-X-Name-Last: Duchin Title: The global economic costs of the need to treat polluted water Abstract: We estimate the global costs and other implications of the need to treat wastewater before it can be re-used. We extend the World Trade Model by creating water treatment sectors and provide alternative sources of water for satisfying users’ quantity and quality requirements. The database distinguishes qualities and quantities of water endowments, sectoral water requirements, and wastewater discharges. We estimate that global water treatment costs could be reduced by several trillion dollars if water endowments were maintained at higher quality than currently is the case. Under scenarios where water quality degrades further, the treatment costs more than double even without taking account of likely increases in quality requirements. This modeling framework provides a starting point not only for more detailed empirical investigations of water management strategies, but also for examining prospects and associated costs for recovering other resources, such as metals, which can be reused multiple times. Journal: Economic Systems Research Pages: 295-314 Issue: 3 Volume: 28 Year: 2016 Month: 9 X-DOI: 10.1080/09535314.2016.1161600 File-URL: http://hdl.handle.net/10.1080/09535314.2016.1161600 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:28:y:2016:i:3:p:295-314 Template-Type: ReDIF-Article 1.0 Author-Name: Karolien Lenaerts Author-X-Name-First: Karolien Author-X-Name-Last: Lenaerts Author-Name: Bruno Merlevede Author-X-Name-First: Bruno Author-X-Name-Last: Merlevede Title: Supply chain fragmentation, input--output tables and spillovers from foreign direct investment Abstract: The literature on the impact of multinationals on domestic firms' productivity points to supply chain linkages with multinational firms as the main channel for positive spillover effects. Local and multinational firms' relative positions in the supply chain are typically determined through the use of input--output tables. For a panel of Romanian firms, we show that the level of industry aggregation in these tables and the applied spillover definitions bear an important impact on estimated spillover effects. We find that the total impact of foreign presence -- irrespective of the channel -- is considerably larger when detailed IO-tables are used. When more aggregated tables are used, one is likely to misclassify a considerable number of supplier--client activity as within-industry competitive activity. Including within-industry supply and use in the measures of supplier--client activity results in a further increase of the spillover effect on local suppliers, whereas the within-industry spillover effect disappears. Journal: Economic Systems Research Pages: 315-332 Issue: 3 Volume: 28 Year: 2016 Month: 9 X-DOI: 10.1080/09535314.2016.1187118 File-URL: http://hdl.handle.net/10.1080/09535314.2016.1187118 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:28:y:2016:i:3:p:315-332 Template-Type: ReDIF-Article 1.0 Author-Name: Guillaume Majeau-Bettez Author-X-Name-First: Guillaume Author-X-Name-Last: Majeau-Bettez Author-Name: Richard Wood Author-X-Name-First: Richard Author-X-Name-Last: Wood Author-Name: Anders Hammer Strømman Author-X-Name-First: Anders Hammer Author-X-Name-Last: Strømman Title: On the financial balance of input--output constructs: revisiting an axiomatic evaluation Abstract: Financial balance is fundamental to input--output (IO) analysis, and consequently the respect of this balance is one of the dominant criteria in evaluating IO constructs. Kop Jansen, and ten Raa [(1990) The Choice of Model in the Construction of Input--Output Coefficients Matrices. International Economic Review 31, 213] proved that the byproduct-technology construct (BTC) and the industry-technology construct (ITC) do not generally conserve financial balance. In contrast, Majeau-Bettez et al. [(2016) When do Allocations and Constructs Respect Material, Energy, Financial, and Production Balances in LCA and EEIO? Journal of Industrial Ecology 20, 67--84] demonstrated that the BTC necessarily respects financial balance and that the ITC is always financially balanced when applied to data recorded in monetary units. The present article resolves this paradox. Journal: Economic Systems Research Pages: 333-343 Issue: 3 Volume: 28 Year: 2016 Month: 9 X-DOI: 10.1080/09535314.2016.1166098 File-URL: http://hdl.handle.net/10.1080/09535314.2016.1166098 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:28:y:2016:i:3:p:333-343 Template-Type: ReDIF-Article 1.0 Author-Name: Mikulas Luptacik Author-X-Name-First: Mikulas Author-X-Name-Last: Luptacik Author-Name: Bernhard Mahlberg Author-X-Name-First: Bernhard Author-X-Name-Last: Mahlberg Title: Productivity change in a multisectoral economic system Abstract: We estimate productivity growth without recourse to data on factor input shares or prices. In the proposed model, the economy is represented by the Leontief input--output model, which is extended by the constraints of primary inputs. A Luenberger productivity indicator is proposed to estimate productivity change; this is then decomposed in a way that enables us to examine the contributions of individual production factors and individual commodities to productivity change. The results allow for the identification of inputs or outputs that are the drivers of the overall productivity change. Their contributions are then decomposed into efficiency change and technical change components. Using input--output tables of the US economy for the period 1977--2006, we show that technical progress has been the main source of productivity change. Technical progress was mostly driven by capital, whereas low-skilled labour contributed negatively. Journal: Economic Systems Research Pages: 344-361 Issue: 3 Volume: 28 Year: 2016 Month: 9 X-DOI: 10.1080/09535314.2016.1192527 File-URL: http://hdl.handle.net/10.1080/09535314.2016.1192527 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:28:y:2016:i:3:p:344-361 Template-Type: ReDIF-Article 1.0 Author-Name: Zhuoying Zhang Author-X-Name-First: Zhuoying Author-X-Name-Last: Zhang Author-Name: Hong Yang Author-X-Name-First: Hong Author-X-Name-Last: Yang Author-Name: Minjun Shi Author-X-Name-First: Minjun Author-X-Name-Last: Shi Title: Spatial and sectoral characteristics of China’s international and interregional virtual water flows -- based on multi-regional input--output model Abstract: This paper provides a systematic analysis of spatial and sectoral characteristics and changes in virtual water flows associated with China’s interregional and international trade based on the China interregional input--output tables of 2002 and 2007. The results show significant improvement in water use efficiency between 2002 and 2007. However, the general spatial patterns and sectoral components of virtual water flows have more or less remained during the period. Almost all Chinese provinces are net exporters of virtual water in international trade. In interregional trade, the dominant direction of virtual water flow is from peripheral provinces to eastern coastal provinces. The agricultural sector plays an important role in shaping this direction and has significant impacts on water uses in exporting provinces, some of which are water scarce. The results of this study clarify some confusions concerning mismatches between regional water endowments and virtual water trade within China and with other countries. Journal: Economic Systems Research Pages: 362-382 Issue: 3 Volume: 28 Year: 2016 Month: 9 X-DOI: 10.1080/09535314.2016.1165651 File-URL: http://hdl.handle.net/10.1080/09535314.2016.1165651 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:28:y:2016:i:3:p:362-382 Template-Type: ReDIF-Article 1.0 Author-Name: Kirsten S. Wiebe Author-X-Name-First: Kirsten S. Author-X-Name-Last: Wiebe Author-Name: Manfred Lenzen Author-X-Name-First: Manfred Author-X-Name-Last: Lenzen Title: To RAS or not to RAS? What is the difference in outcomes in multi-regional input--output models? Abstract: The global resource accounting model (GRAM), which is based on OECD input--output and bilateral trade data, is a multi-regional input--output model covering 53 countries and 2 regions. What differentiates GRAM from other state-of-the-art models in this field is that it does not use a matrix balancing technique, such as RAS, after the initial construction of the global intermediate coefficient and final demand matrices. Instead, it reproduces prescribed intermediate and final demand, and determines value added residually. This choice was made to alter the original data as little as possible and keep the calculations traceable. This simpler solution technique might, however, yield different results. This paper aims at identifying the difference between the current solution of GRAM and the solution of a RASed version of GRAM, thus contributing to the assessment of currently used methodologies in this research field. The short conclusion is that, even though some differences during the calculations are present, the calculated output (production) matrix does not differ substantially. The results show that larger differences are brought about by poor assumptions regarding missing or conflicting data rather than by applying or not applying a RAS procedure to the constructed global matrices. Journal: Economic Systems Research Pages: 383-402 Issue: 3 Volume: 28 Year: 2016 Month: 9 X-DOI: 10.1080/09535314.2016.1192528 File-URL: http://hdl.handle.net/10.1080/09535314.2016.1192528 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:28:y:2016:i:3:p:383-402 Template-Type: ReDIF-Article 1.0 Author-Name: Jung Hoon Kim Author-X-Name-First: Jung Hoon Author-X-Name-Last: Kim Author-Name: Marc Lavoie Author-X-Name-First: Marc Author-X-Name-Last: Lavoie Title: A two-sector model with target-return pricing in a stock-flow consistent framework Abstract: In this paper, we build a generalized two-sector Kaleckian growth model and explore the dynamics towards long-run positions. The model incorporates conflicting claims of labour and firms over income distribution and endogenous labour-saving technical progress. Adopting a stock-flow consistent framework, our simulation experiments yield the following results. First, the ‘paradox of thrift’ and the ‘paradox of costs’ hold, meaning that lower saving rates generate higher growth rates while higher real wages generate higher profit rates, but the magnitude of the impact depends on the initial status of income distribution and monetary policy. Second, changes in autonomous labour-saving innovations might explain the phenomenon of the ‘New Economy’ of the second half of the 1990s within an alternative framework. Our simulations with a two-sector model retrieve the analytical results achieved with a one-sector Kaleckian model, with the addition of path dependence. Journal: Economic Systems Research Pages: 403-427 Issue: 3 Volume: 28 Year: 2016 Month: 9 X-DOI: 10.1080/09535314.2016.1196166 File-URL: http://hdl.handle.net/10.1080/09535314.2016.1196166 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:28:y:2016:i:3:p:403-427 Template-Type: ReDIF-Article 1.0 Author-Name: Sai Liang Author-X-Name-First: Sai Author-X-Name-Last: Liang Author-Name: Yafei Wang Author-X-Name-First: Yafei Author-X-Name-Last: Wang Author-Name: Chao Zhang Author-X-Name-First: Chao Author-X-Name-Last: Zhang Author-Name: Ming Xu Author-X-Name-First: Ming Author-X-Name-Last: Xu Author-Name: Zhifeng Yang Author-X-Name-First: Zhifeng Author-X-Name-Last: Yang Author-Name: Weidong Liu Author-X-Name-First: Weidong Author-X-Name-Last: Liu Author-Name: Hongguang Liu Author-X-Name-First: Hongguang Author-X-Name-Last: Liu Author-Name: Anthony S.F. Chiu Author-X-Name-First: Anthony S.F. Author-X-Name-Last: Chiu Title: Final production-based emissions of regions in China Abstract: Existing studies focus on either direct emissions of each province in China using production-based accounting (i.e. direct emitters) or emissions caused by the final consumption of each province using consumption-based accounting (i.e. final consumers), but overlook provinces whose final sales drive large amounts of upstream emissions (i.e. final producers). Improving the production efficiency of the latter can help to reduce national emissions. Here we use a final production-based accounting framework to identify critical final producers. Results show that the major final producers leading to China’s emissions are Hebei, Shandong, Jiangsu, Zhejiang, and Guangdong, which are the major manufacturing centers in China. China should encourage the production efficiency improvement of dominant firms in industries of these provinces. The final production-based accounting framework can also help to define and allocate emission responsibilities of Chinese provinces. It can complement production-based and consumption-based accounting frameworks to guide environmental policy-making in China. Journal: Economic Systems Research Pages: 18-36 Issue: 1 Volume: 30 Year: 2018 Month: 1 X-DOI: 10.1080/09535314.2017.1312291 File-URL: http://hdl.handle.net/10.1080/09535314.2017.1312291 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:30:y:2018:i:1:p:18-36 Template-Type: ReDIF-Article 1.0 Author-Name: Michael Peneder Author-X-Name-First: Michael Author-X-Name-Last: Peneder Author-Name: Gerhard Streicher Author-X-Name-First: Gerhard Author-X-Name-Last: Streicher Title: De-industrialization and comparative advantage in the global value chain Abstract: We investigate the causes of de-industrialization and potential for re-industrialization using trade-linked input–output data from WIOD. By introducing a new global value chain measure of comparative advantage, we relate a sector's share in domestic final demand to that in production and separate the direct effect of trade on its income share. This method identifies the declining share of manufacturing value added in domestic final expenditures to be the main cause of de-industrialization. Differences in comparative advantage between countries do matter, especially in the case of employment shares, but have a limited impact via the direct trade effect on value added. The findings point to a peculiar paradox of industrial policy: precisely when it is successful in raising competitiveness and hence productivity growth of manufacturing, it also furthers the global decline of relative prices in manufacturing. In contrast to the national objectives of re-industrialization, effective industrial policies accelerate de-industrialization in the global economy. Journal: Economic Systems Research Pages: 85-104 Issue: 1 Volume: 30 Year: 2018 Month: 1 X-DOI: 10.1080/09535314.2017.1320274 File-URL: http://hdl.handle.net/10.1080/09535314.2017.1320274 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:30:y:2018:i:1:p:85-104 Template-Type: ReDIF-Article 1.0 Author-Name: María Victoria Román Author-X-Name-First: María Victoria Author-X-Name-Last: Román Author-Name: Iñaki Arto Author-X-Name-First: Iñaki Author-X-Name-Last: Arto Author-Name: Alberto Ansuategi Author-X-Name-First: Alberto Author-X-Name-Last: Ansuategi Title: Why do some economies benefit more from climate finance than others? A case study on North-to-South financial flows Abstract: The Copenhagen and Paris Agreements, in which developed countries committed to mobilise USD 100 billion a year by 2020, indicate that climate finance will continue to grow. Even though economic development is not the aim of climate finance, climate-related disbursements will generate an economic impact on recipient countries’ economies. This impact will also reach other countries (including climate finance donors) through induced international trade. In this paper, we apply a structural decomposition analysis to study why the economic impact of climate finance varies between countries. We focus on specific climate actions and quantify the contribution of four drivers: value-added intensity, domestic multiplier, foreign multiplier and trade structure. The paper helps identifying the factors with the greatest potential to enhance the economic gains of climate finance in each country. This information can be useful for policy-makers trying to design national strategies that exploit the synergies between climate action and economic development. Journal: Economic Systems Research Pages: 37-60 Issue: 1 Volume: 30 Year: 2018 Month: 1 X-DOI: 10.1080/09535314.2017.1334629 File-URL: http://hdl.handle.net/10.1080/09535314.2017.1334629 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:30:y:2018:i:1:p:37-60 Template-Type: ReDIF-Article 1.0 Author-Name: Hanspeter Wieland Author-X-Name-First: Hanspeter Author-X-Name-Last: Wieland Author-Name: Stefan Giljum Author-X-Name-First: Stefan Author-X-Name-Last: Giljum Author-Name: Martin Bruckner Author-X-Name-First: Martin Author-X-Name-Last: Bruckner Author-Name: Anne Owen Author-X-Name-First: Anne Author-X-Name-Last: Owen Author-Name: Richard Wood Author-X-Name-First: Richard Author-X-Name-Last: Wood Title: Structural production layer decomposition: a new method to measure differences between MRIO databases for footprint assessments Abstract: Recent empirical assessments revealed that footprint indicators calculated with various multi-regional input–output (MRIO) databases deliver deviating results. In this paper, we propose a new method, called structural production layer decomposition (SPLD), which complements existing structural decomposition approaches. SPLD enables differentiating between effects stemming from specific parts in the technology matrix, e.g. trade blocks vs. domestic blocks, while still allowing to link the various effects to the total region footprint. Using the carbon footprint of the EU-28 in 2011 as an example, we analyse the differences between EXIOBASE, Eora, GTAP and WIOD. Identical environmental data are used across all MRIO databases. In all model comparisons, variations in domestic blocks have a more significant impact on the carbon footprint than variations in trade blocks. The results provide a wealth of information for MRIO developers and are relevant for policy makers designing climate policy measures targeted to specific stages along product supply chains. Journal: Economic Systems Research Pages: 61-84 Issue: 1 Volume: 30 Year: 2018 Month: 1 X-DOI: 10.1080/09535314.2017.1350831 File-URL: http://hdl.handle.net/10.1080/09535314.2017.1350831 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:30:y:2018:i:1:p:61-84 Template-Type: ReDIF-Article 1.0 Author-Name: João-Pedro Ferreira Author-X-Name-First: João-Pedro Author-X-Name-Last: Ferreira Author-Name: Pedro Ramos Author-X-Name-First: Pedro Author-X-Name-Last: Ramos Author-Name: Luís Cruz Author-X-Name-First: Luís Author-X-Name-Last: Cruz Author-Name: Eduardo Barata Author-X-Name-First: Eduardo Author-X-Name-Last: Barata Title: The opportunity costs of commuting: the value of a commuting satellite account framework with an example from Lisbon Metropolitan Area Abstract: Commuting affects regional and urban economies. It shapes urban areas, defines their relationships with neighboring regions, intensifies economic flows and exacerbates energy consumption and greenhouse gas emissions. This paper sets out a proposal for an innovative commuting satellite account (CSA), integrated in a multi-regional input–output model. This framework combines commuting activities with regional distribution of income, distinct household consumption structures, real estate renting activities and the energy consumption and environmental flows incorporated in the different industries. To assess the opportunity costs of commuting, the CSA framework is applied to the Lisbon Metropolitan Area. The socio-economic-environmental impacts of a scenario in which commuters become non-commuters by moving their residence to the municipality in which they work are estimated. The analysis indicates that: commuting, in general, induces significant economic and environmental opportunity costs. Finally, the adoption of policy-oriented recommendations contributing to limit sprawling in metropolitan regions is discussed. Journal: Economic Systems Research Pages: 105-119 Issue: 1 Volume: 30 Year: 2018 Month: 1 X-DOI: 10.1080/09535314.2017.1357536 File-URL: http://hdl.handle.net/10.1080/09535314.2017.1357536 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:30:y:2018:i:1:p:105-119 Template-Type: ReDIF-Article 1.0 Author-Name: Vinicius A. Vale Author-X-Name-First: Vinicius A. Author-X-Name-Last: Vale Author-Name: Fernando S. Perobelli Author-X-Name-First: Fernando S. Author-X-Name-Last: Perobelli Author-Name: Ariaster B. Chimeli Author-X-Name-First: Ariaster B. Author-X-Name-Last: Chimeli Title: International trade, pollution, and economic structure: evidence on CO2 emissions for the North and the South Abstract: This study investigates the mechanics of international trade and CO2 emissions in two blocs of countries (‘North’ and ‘South’) by analyzing data from the World Input–Output Database. We adapt the Miyazawa technique to estimate the linkages between international trade and the environment at a global scale. Therefore, this study is in line with the idea of highlighting the role of feedback effects as well as the nature and extent of extra-regional influences on an economy in response to an additional stimulus. This is a contribution that, to our best knowledge, has not yet appeared in the literature. Our results suggest that both the North and the South have become less pollution-intensive (technique effect) over the years. Interestingly and in contrast to much of the literature, we also find support to the hypothesis that the South has specialized in relatively more pollution-intensive activities (composition effect). Journal: Economic Systems Research Pages: 1-17 Issue: 1 Volume: 30 Year: 2018 Month: 1 X-DOI: 10.1080/09535314.2017.1361907 File-URL: http://hdl.handle.net/10.1080/09535314.2017.1361907 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:30:y:2018:i:1:p:1-17 Template-Type: ReDIF-Article 1.0 Author-Name: Henryk Gurgul Author-X-Name-First: Henryk Author-X-Name-Last: Gurgul Author-Name: Łukasz Lach Author-X-Name-First: Łukasz Author-X-Name-Last: Lach Title: Some remarks on a social network approach to identifying key sectors Abstract: Ostensibly, certain adaptations of social network theory extend and improve the traditional key-sector approaches. Our analysis of the underlying algebraic properties shows that a social-network-based approach proposed by García Muñiz et al. [(2008) Key Sectors: A New Proposal from Network Theory. Regional Studies, 42, 1013–1030] does not relate final demand and output in ways comparable to key-sector measures that are based on the static Leontief input–output model. Using the most recent IO table for Poland we show that the modified approach can lead to spurious empirical results and, as a consequence, to false policy implications. Journal: Economic Systems Research Pages: 120-135 Issue: 1 Volume: 30 Year: 2018 Month: 1 X-DOI: 10.1080/09535314.2017.1365048 File-URL: http://hdl.handle.net/10.1080/09535314.2017.1365048 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:30:y:2018:i:1:p:120-135 Template-Type: ReDIF-Article 1.0 Author-Name: Johannes Többen Author-X-Name-First: Johannes Author-X-Name-Last: Többen Title: On the simultaneous estimation of physical and monetary commodity flows Abstract: Large databases mapping commodity flows measured in various units such as currency, tons or caloric values are the backbone of many recent environmental-economic studies. Their construction typically requires combining large amounts of partial information in a series of successive steps. These include the estimation of unobserved flows, transformations between units, handling aggregation re-classification and, finally, reconciling estimates with mass, financial and/or energy balances. This paper proposes a maximum entropy model that allows for the simultaneous estimation of unobserved commodity flows as well as corresponding prices such that data constraints in various units of measurement, levels of aggregation and possibly mismatching classifications are simultaneously satisfied. Its capability is assessed through a Monte-Carlo analysis and its performance compared with a simple step-wise approach. Our results suggest that the simultaneous approach performs significantly better in a vast majority of cases. Journal: Economic Systems Research Pages: 1-24 Issue: 1 Volume: 29 Year: 2017 Month: 1 X-DOI: 10.1080/09535314.2016.1271774 File-URL: http://hdl.handle.net/10.1080/09535314.2016.1271774 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:29:y:2017:i:1:p:1-24 Template-Type: ReDIF-Article 1.0 Author-Name: Maarten Christis Author-X-Name-First: Maarten Author-X-Name-Last: Christis Author-Name: Theo Geerken Author-X-Name-First: Theo Author-X-Name-Last: Geerken Author-Name: An Vercalsteren Author-X-Name-First: An Author-X-Name-Last: Vercalsteren Author-Name: Karl C. Vrancken Author-X-Name-First: Karl C. Author-X-Name-Last: Vrancken Title: Improving footprint calculations of small open economies: combining local with multi-regional input–output tables Abstract: In a small, open and resource-poor economy, import and export dependency have an ever-growing impact on local policy decisions, which makes local (environmental) policy-makers increasingly depend on global data. This increases the interest in models that link local production and consumption data to global production, trade and environmental data. The recent increase in availability of global environmentally extended multi-regional input-output tables (EE-MRIO tables) provides an opportunity to link them with existing local environmentally extended input-output tables (EE-RIO tables). These combined tables make it possible (1) to analyse the links between local and global production and consumption and (2) to study global value chains, material use and environmental impacts simultaneously. However, estimations using input-output (I–O) analyses contain errors due to imperfect databases. In this article the magnitude of specification, aggregation and time errors are estimated and compared. The results show the need to combine local datasets with multi-regional ones and show that highest detailed (country and sector levels) as well as time series of I–O tables are the way forward for using I–O analyses in local policy-making. The paper provides guidance on trading off investments in model adoption and/or extension and the reliability of estimation results. Journal: Economic Systems Research Pages: 25-47 Issue: 1 Volume: 29 Year: 2017 Month: 1 X-DOI: 10.1080/09535314.2016.1245653 File-URL: http://hdl.handle.net/10.1080/09535314.2016.1245653 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:29:y:2017:i:1:p:25-47 Template-Type: ReDIF-Article 1.0 Author-Name: Bo Meng Author-X-Name-First: Bo Author-X-Name-Last: Meng Author-Name: Yong Fang Author-X-Name-First: Yong Author-X-Name-Last: Fang Author-Name: Jiemin Guo Author-X-Name-First: Jiemin Author-X-Name-Last: Guo Author-Name: Yaxiong Zhang Author-X-Name-First: Yaxiong Author-X-Name-Last: Zhang Title: Measuring China’s domestic production networks through Trade in Value-added perspectives Abstract: Evaluating the role and performance of China's participation in Global value chains (GVCs) has been a hot policy and research issue in recent years. However, most GVCs-related literature about China focuses on country-to-country relations; less attention has been paid to China's domestic value chains (DVCs). GVCs should have their domestic foundations since strong linkages across domestic firms and regions can improve productivity through gains from specialization, which make domestic industries more competitive in GVCs in turn. This paper applies the so-called Trade in Value-added (TiVA) concept and the decomposition of domestic-regional trade in TiVA terms to re-measure the inter-industrial and interregional linkages in China's DVCs. We show that TiVA-based measures can significantly enrich our understanding on both the structure change of China's regional economy and the position and participation degree of Chinese regions in DVCs. Journal: Economic Systems Research Pages: 48-65 Issue: 1 Volume: 29 Year: 2017 Month: 1 X-DOI: 10.1080/09535314.2017.1282435 File-URL: http://hdl.handle.net/10.1080/09535314.2017.1282435 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:29:y:2017:i:1:p:48-65 Template-Type: ReDIF-Article 1.0 Author-Name: Arjan Lejour Author-X-Name-First: Arjan Author-X-Name-Last: Lejour Author-Name: Hugo Rojas-Romagosa Author-X-Name-First: Hugo Author-X-Name-Last: Rojas-Romagosa Author-Name: Paul Veenendaal Author-X-Name-First: Paul Author-X-Name-Last: Veenendaal Title: Identifying hubs and spokes in global supply chains using redirected trade in value added Abstract: The increasing importance of global supply chains has prompted the use of analytical tools based on trade in value added – instead of traditional measures in gross value. We use this analytical framework to develop indicators that identify production hubs and supply spokes in global supply chains. Using these indicators and the Global Trade Analysis Project (GTAP) database, we quantify the relative importance of redirected value-added trade and the hub and spoke relationships at the aggregate level and for specific highly integrated industries. Journal: Economic Systems Research Pages: 66-81 Issue: 1 Volume: 29 Year: 2017 Month: 1 X-DOI: 10.1080/09535314.2017.1282436 File-URL: http://hdl.handle.net/10.1080/09535314.2017.1282436 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:29:y:2017:i:1:p:66-81 Template-Type: ReDIF-Article 1.0 Author-Name: Marco Capasso Author-X-Name-First: Marco Author-X-Name-Last: Capasso Author-Name: Koen Frenken Author-X-Name-First: Koen Author-X-Name-Last: Frenken Author-Name: Tania Treibich Author-X-Name-First: Tania Author-X-Name-Last: Treibich Title: Sectoral co-movements of employment growth at regional level Abstract: This paper presents a comprehensive study of sectoral co-movements of employment growth in the entire Dutch economy. We construct different macro typologies according to manufacturing versus services, innovativeness, labour skills and position in the value chain, thus expanding the list of potential logics of sectoral interrelations. Using a vector autoregression model, we assess whether and how growth in a macro-sector, and in a given region, can predict growth in the same or other macro-sectors, in the same or in other regions. Our findings bring to light the inter-regional nature of intersectoral linkages, as well as the existence of complementarities between sectors. Supporting the growth of innovative firms could have positive externality effects, especially in the Knowledge-Intensive Business Services sector which is associated with the growth of the entire economy. Journal: Economic Systems Research Pages: 82-104 Issue: 1 Volume: 29 Year: 2017 Month: 1 X-DOI: 10.1080/09535314.2017.1281232 File-URL: http://hdl.handle.net/10.1080/09535314.2017.1281232 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:29:y:2017:i:1:p:82-104 Template-Type: ReDIF-Article 1.0 Author-Name: Fumiya Nagashima Author-X-Name-First: Fumiya Author-X-Name-Last: Nagashima Author-Name: Shigemi Kagawa Author-X-Name-First: Shigemi Author-X-Name-Last: Kagawa Author-Name: Sangwon Suh Author-X-Name-First: Sangwon Author-X-Name-Last: Suh Author-Name: Keisuke Nansai Author-X-Name-First: Keisuke Author-X-Name-Last: Nansai Author-Name: Daniel Moran Author-X-Name-First: Daniel Author-X-Name-Last: Moran Title: Identifying critical supply chain paths and key sectors for mitigating primary carbonaceous PM mortality in Asia Abstract: Total mortality attributable to PM2.5 is highest in the Asian domain, estimated as 2.3 million deaths annually. We apply consumption-based accounting to identify the key sectors responsible for primary carbonaceous PM2.5 mortality. The study combines an input–output model with an atmospheric transport model and fully links consumer demand to final pollutant fate and health impact. We find the following: (1) considering atmospheric transport changes the distribution of demand-induced impact as compared to conventional emissions footprinting, (2) the supply chain paths with the greatest impact on PM2.5-induced human health problems in the region are centered around agricultural technologies in China, and (3) the transportation sector of China plays a major role in the supply chain paths that generate relatively large impacts on human health. We conclude that Japan is responsible for PM2.5 mortality in Asia and should take leadership in changing key high-priority technologies and critical supply chain paths into greener ones. Journal: Economic Systems Research Pages: 105-123 Issue: 1 Volume: 29 Year: 2017 Month: 1 X-DOI: 10.1080/09535314.2016.1266992 File-URL: http://hdl.handle.net/10.1080/09535314.2016.1266992 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:29:y:2017:i:1:p:105-123 Template-Type: ReDIF-Article 1.0 Author-Name: Guido Ferrari Author-X-Name-First: Guido Author-X-Name-Last: Ferrari Author-Name: Luca Secondi Author-X-Name-First: Luca Author-X-Name-Last: Secondi Title: CES and Translog parameter estimates in a SAM-based regional general equilibrium framework Abstract: The computation of General Equilibrium models crucially depends on Social Accounting Matrix (SAM)-based calibration and on how estimation/imputation are performed to reproduce the benchmark dataset as an equilibrium solution. In this paper, theoretical contributions are provided by suggesting a new procedure in which the production function parameters and the elasticity of substitution are estimated by resorting to the data contained in the SAM. To this aim, the Generalized Cross-Entropy estimator is used. Application of this self-contained procedure to the regional SAM for the Italian region Tuscany leads to empirical results consisting of the estimates of the elasticities of substitution of Constant Elasticity of Substitution and Translog production functions consistent with the theoretical background. This yields a more efficient and effective solution of Computable General Equilibrium models. Journal: Economic Systems Research Pages: 124-141 Issue: 1 Volume: 29 Year: 2017 Month: 1 X-DOI: 10.1080/09535314.2017.1281233 File-URL: http://hdl.handle.net/10.1080/09535314.2017.1281233 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:29:y:2017:i:1:p:124-141 Template-Type: ReDIF-Article 1.0 Author-Name: Arne Geschke Author-X-Name-First: Arne Author-X-Name-Last: Geschke Author-Name: Michalis Hadjikakou Author-X-Name-First: Michalis Author-X-Name-Last: Hadjikakou Title: Virtual laboratories and MRIO analysis – an introduction Abstract: This editorial is the introduction to a special issue of Economic Systems Research on Input–Output Virtual Laboratories (IO VLs). The main purpose of this editorial is to explain the rationale for dedicating a special issue to this evolving niche of IO research, highlighting its potential to contribute to debates on topical policy issues. The first two sections review recent developments in the field of multi-regional input–output database compilation, followed by a brief description of the concept and architecture behind IO VLs. The seven papers chosen for this issue are then introduced. The concluding section finally outlines current challenges and future research avenues for IO VLs. Journal: Economic Systems Research Pages: 143-157 Issue: 2 Volume: 29 Year: 2017 Month: 4 X-DOI: 10.1080/09535314.2017.1318828 File-URL: http://hdl.handle.net/10.1080/09535314.2017.1318828 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:29:y:2017:i:2:p:143-157 Template-Type: ReDIF-Article 1.0 Author-Name: Manfred Lenzen Author-X-Name-First: Manfred Author-X-Name-Last: Lenzen Author-Name: Arne Geschke Author-X-Name-First: Arne Author-X-Name-Last: Geschke Author-Name: Muhammad Daaniyall Abd Rahman Author-X-Name-First: Muhammad Daaniyall Author-X-Name-Last: Abd Rahman Author-Name: Yanyan Xiao Author-X-Name-First: Yanyan Author-X-Name-Last: Xiao Author-Name: Jacob Fry Author-X-Name-First: Jacob Author-X-Name-Last: Fry Author-Name: Rachel Reyes Author-X-Name-First: Rachel Author-X-Name-Last: Reyes Author-Name: Erik Dietzenbacher Author-X-Name-First: Erik Author-X-Name-Last: Dietzenbacher Author-Name: Satoshi Inomata Author-X-Name-First: Satoshi Author-X-Name-Last: Inomata Author-Name: Keiichiro Kanemoto Author-X-Name-First: Keiichiro Author-X-Name-Last: Kanemoto Author-Name: Bart Los Author-X-Name-First: Bart Author-X-Name-Last: Los Author-Name: Daniel Moran Author-X-Name-First: Daniel Author-X-Name-Last: Moran Author-Name: Hagen Schulte in den Bäumen Author-X-Name-First: Hagen Author-X-Name-Last: Schulte in den Bäumen Author-Name: Arnold Tukker Author-X-Name-First: Arnold Author-X-Name-Last: Tukker Author-Name: Terrie Walmsley Author-X-Name-First: Terrie Author-X-Name-Last: Walmsley Author-Name: Thomas Wiedmann Author-X-Name-First: Thomas Author-X-Name-Last: Wiedmann Author-Name: Richard Wood Author-X-Name-First: Richard Author-X-Name-Last: Wood Author-Name: Norihiko Yamano Author-X-Name-First: Norihiko Author-X-Name-Last: Yamano Title: The Global MRIO Lab – charting the world economy Abstract: We describe the creation of the Global Multi-Region Input–Output (MRIO) Lab, which is a cloud-computing platform offering a collaborative research environment through which participants can use each other’s resources to assemble their own individual MRIO versions. The Global MRIO Lab’s main purpose is to harness and focus previously disparate resources aimed at compiling large-scale MRIO databases that provide comprehensive representations of interregional trade, economic structure, industrial interdependence, as well as environmental and social impact. Based on the operational Australian Industrial Ecology Lab, a particularly important feature of this cloud environment is a highly detailed regional and sectoral taxonomy called the ‘root classification’. The purpose of this root is to serve as a feedstock from which researchers can choose any combination of regions and economic sectors to form a model of the economy that is suitable to address their particular research questions. Thus, the Global MRIO Lab concept enables enhanced flexibility in MRIO database construction whilst at the same time saving resources and avoiding duplication, by sharing time- and labour-intensive tasks amongst multiple research teams. We explain the concept, architecture, development and preliminary results of the Global MRIO Lab, and discuss its ability to continuously deliver some of the most prominent world MRIO databases. Journal: Economic Systems Research Pages: 158-186 Issue: 2 Volume: 29 Year: 2017 Month: 4 X-DOI: 10.1080/09535314.2017.1301887 File-URL: http://hdl.handle.net/10.1080/09535314.2017.1301887 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:29:y:2017:i:2:p:158-186 Template-Type: ReDIF-Article 1.0 Author-Name: Muhammad Daaniyall Abd Rahman Author-X-Name-First: Muhammad Daaniyall Abd Author-X-Name-Last: Rahman Author-Name: Bart Los Author-X-Name-First: Bart Author-X-Name-Last: Los Author-Name: Arne Geschke Author-X-Name-First: Arne Author-X-Name-Last: Geschke Author-Name: Yanyan Xiao Author-X-Name-First: Yanyan Author-X-Name-Last: Xiao Author-Name: Keiichiro Kanemoto Author-X-Name-First: Keiichiro Author-X-Name-Last: Kanemoto Author-Name: Manfred Lenzen Author-X-Name-First: Manfred Author-X-Name-Last: Lenzen Title: A flexible adaptation of the WIOD database in a virtual laboratory Abstract: The World Input-Output Database provides a time series of world input–output tables (WIOTs) that have been used for example to understand the manifold effects of the increased integration of markets through international trade. In order to enhance the flexibility of research on global trade issues using WIOD, we implement the WIOT workflow in a collaborative, cloud-based virtual laboratory environment. We demonstrate that a lab-based adaptation of WIOD is able (a) to continuously create and update versions of the WIOTs in a timely, consistent, and cost-effective way, (b) to enhance original information with accompanying information on standard deviations, and (c) to enable flexible re-casting of the entire WIOT time series into user-specific geographical and sectoral classifications. Journal: Economic Systems Research Pages: 187-208 Issue: 2 Volume: 29 Year: 2017 Month: 4 X-DOI: 10.1080/09535314.2017.1318115 File-URL: http://hdl.handle.net/10.1080/09535314.2017.1318115 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:29:y:2017:i:2:p:187-208 Template-Type: ReDIF-Article 1.0 Author-Name: Rachel C. Reyes Author-X-Name-First: Rachel C. Author-X-Name-Last: Reyes Author-Name: Arne Geschke Author-X-Name-First: Arne Author-X-Name-Last: Geschke Author-Name: Arjan de Koning Author-X-Name-First: Arjan Author-X-Name-Last: de Koning Author-Name: Richard Wood Author-X-Name-First: Richard Author-X-Name-Last: Wood Author-Name: Tatyana Bulavskaya Author-X-Name-First: Tatyana Author-X-Name-Last: Bulavskaya Author-Name: Konstantin Stadler Author-X-Name-First: Konstantin Author-X-Name-Last: Stadler Author-Name: Hagen Schulte in den Bäumen Author-X-Name-First: Hagen Author-X-Name-Last: Schulte in den Bäumen Author-Name: Arnold Tukker Author-X-Name-First: Arnold Author-X-Name-Last: Tukker Title: The Virtual IELab – an exercise in replicating part of the EXIOBASE V.2 production pipeline in a virtual laboratory Abstract: We explore options to replicate the EXIOBASE2 multi-region input–output (MRIO) database in the Virtual IELab cloud-computing laboratory environment. Whereas EXIOBASE2 is constructed using a multi-process reconciliation procedure, we present an alternative compilation technique that uses EXIOBASE2's pre-processed data and final tables in reconciling the IELab MRIO with conflicting raw data information. This approach skips the labour-intensive step of detailing and harmonising country tables. Adherence metrics reveal the EXIOBASE2-based IELab table to be considerably less balanced than the original but with stronger adherence to other constraints data. However, these metrics are not comparable to the original EXIOBASE2 statistics due to the distinctive implementation of constraint sets in the two platforms. IELab's main value-added is its flexibility in tailoring EXIOBASE2-based MRIOs beyond the original recipe. Finally, IELab's global carbon, water and material footprints are shown to be comparable with previously reported resource footprints. In contrast, deviations in land footprints warrant further investigation. Journal: Economic Systems Research Pages: 209-233 Issue: 2 Volume: 29 Year: 2017 Month: 4 X-DOI: 10.1080/09535314.2017.1317237 File-URL: http://hdl.handle.net/10.1080/09535314.2017.1317237 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:29:y:2017:i:2:p:209-233 Template-Type: ReDIF-Article 1.0 Author-Name: Futu Faturay Author-X-Name-First: Futu Author-X-Name-Last: Faturay Author-Name: Manfred Lenzen Author-X-Name-First: Manfred Author-X-Name-Last: Lenzen Author-Name: Kunta Nugraha Author-X-Name-First: Kunta Author-X-Name-Last: Nugraha Title: A new sub-national multi-region input–output database for Indonesia Abstract: As a large archipelago with significant geographical variation and economic diversity, Indonesia requires detailed regional information when subjected to economic modelling. While such information is available, it however has not been integrated and harmonised into a comprehensive input–output database, thus preventing economic, social, and environmental modelling for investigating sub-national regional policy questions. We present the new IndoLab, a collaborative research platform for Indonesia, enabling input–output modelling of economic, social, and environmental issues in a cloud-computing environment. Within the IndoLab researchers are for the first time able to generate a time series of regionally and sectorally detailed and comprehensive, sub-national multi-region input–output (MRIO) tables for Indonesia. By integrating a multitude of economic, social, and environmental data into a single standardised processing pipeline and harmonised data repository, the IndoLab is able to generate MRIO tables capturing up to 1148 sectors, and 495 cities and regencies. Researchers can freely choose from this detail to construct tables with customised classifications that suit their own research questions. First results from the IndoLab clearly demonstrate the unique characteristics of regions in terms of their sectors’ employment intensity. Thus, the IndoLab has great potential for investigating policy questions that cannot be comprehensively addressed using a single national database. Journal: Economic Systems Research Pages: 234-251 Issue: 2 Volume: 29 Year: 2017 Month: 4 X-DOI: 10.1080/09535314.2017.1304361 File-URL: http://hdl.handle.net/10.1080/09535314.2017.1304361 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:29:y:2017:i:2:p:234-251 Template-Type: ReDIF-Article 1.0 Author-Name: Yafei Wang Author-X-Name-First: Yafei Author-X-Name-Last: Wang Title: An industrial ecology virtual framework for policy making in China Abstract: This study develops a multi-regional input–output (MRIO) laboratory for policy-relevant applications in China. The Chinese IELab features unique flexibility and advances the previous state of the art in terms of three novel aspects. First, it can generate regionally and sectorally very detailed MRIO tables based on users’ own research questions. Second, it covers the entire territorial economic boundary and has the longest and most up to date annual time series from 1978 to 2015. Third, it can be used to provide insight to a wide range of research and policy questions including social, economic, and environmental issues, thus significantly improving all applications that rely on input–output tables. These features are illustrated by generating a Beijing–Tianjin–Hebei multi-regional supply and use table for 2014 at city level and applying it to the case study of transferring Beijing’s non-capital functions according to The Beijing-Tianjin-Hebei Coordinated Development Strategy set by the Chinese government. Journal: Economic Systems Research Pages: 252-274 Issue: 2 Volume: 29 Year: 2017 Month: 4 X-DOI: 10.1080/09535314.2017.1313199 File-URL: http://hdl.handle.net/10.1080/09535314.2017.1313199 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:29:y:2017:i:2:p:252-274 Template-Type: ReDIF-Article 1.0 Author-Name: Manfred Lenzen Author-X-Name-First: Manfred Author-X-Name-Last: Lenzen Author-Name: Arne Geschke Author-X-Name-First: Arne Author-X-Name-Last: Geschke Author-Name: Arunima Malik Author-X-Name-First: Arunima Author-X-Name-Last: Malik Author-Name: Jacob Fry Author-X-Name-First: Jacob Author-X-Name-Last: Fry Author-Name: Joe Lane Author-X-Name-First: Joe Author-X-Name-Last: Lane Author-Name: Thomas Wiedmann Author-X-Name-First: Thomas Author-X-Name-Last: Wiedmann Author-Name: Steven Kenway Author-X-Name-First: Steven Author-X-Name-Last: Kenway Author-Name: Khanh Hoang Author-X-Name-First: Khanh Author-X-Name-Last: Hoang Author-Name: Andrew Cadogan-Cowper Author-X-Name-First: Andrew Author-X-Name-Last: Cadogan-Cowper Title: New multi-regional input–output databases for Australia – enabling timely and flexible regional analysis Abstract: Decision-making at regional scales requires timely information. Within four months of the release of official national statistics, we have produced a time-series (2008–2015) of balanced sub-national, multi-regional supply-and-use tables (MR-SUT), integrated with a set of socio-economic and environmental accounts. This was achieved using the Australian IELab, where data used in this study are available (https://ielab.info/resources/91). Four multi-regional, environmentally extended supply-use tables regionalised in different ways were produced to demonstrate the flexibility of tailoring input–output models to specific research or policy questions. Results for satellite coefficients are sensitive to the chosen regional grouping and method for regionalisation. We demonstrate the relevance of such purpose-built information to government and corporate decision-makers by analysing the indirect economic and employment consequences of a slowdown of the mining boom in Western Australia. The demonstrated innovations in flexibility and timeliness will help move past some of the limitations that have historically hindered the uptake and utility of applied input–output analysis. Journal: Economic Systems Research Pages: 275-295 Issue: 2 Volume: 29 Year: 2017 Month: 4 X-DOI: 10.1080/09535314.2017.1315331 File-URL: http://hdl.handle.net/10.1080/09535314.2017.1315331 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:29:y:2017:i:2:p:275-295 Template-Type: ReDIF-Article 1.0 Author-Name: Thomas Wiedmann Author-X-Name-First: Thomas Author-X-Name-Last: Wiedmann Title: An input–output virtual laboratory in practice – survey of uptake, usage and applications of the first operational IELab Abstract: The Industrial Ecology Virtual Laboratory (IELab) is a collaborative cloud-computing platform for compiling large-scale, high-resolution, enviro-socio-economic accounts based on multi-region input–output tables and for conducting integrated sustainability assessment projects. These include, for example, assessments of biofuels and low-carbon construction materials or high-resolution waste modelling. This contribution provides a structured review of IELab applications that were published in either peer-reviewed journal papers or in the form of conference proceedings. The main research question posed is ‘What are the specific features of IELab that were used in the research and could the research have happened without them?’ It is investigated whether the IELab has actually and truly enabled new research. A detailed analysis of IELab characteristics and their usage is presented. The results can help with the design of new research projects and inform existing and prospective users of the IELab about the options for academic research and practical applications. Journal: Economic Systems Research Pages: 296-312 Issue: 2 Volume: 29 Year: 2017 Month: 4 X-DOI: 10.1080/09535314.2017.1283295 File-URL: http://hdl.handle.net/10.1080/09535314.2017.1283295 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:29:y:2017:i:2:p:296-312 Template-Type: ReDIF-Article 1.0 Author-Name: Yoshio Kajitani Author-X-Name-First: Yoshio Author-X-Name-Last: Kajitani Author-Name: Hirokazu Tatano Author-X-Name-First: Hirokazu Author-X-Name-Last: Tatano Title: Applicability of a spatial computable general equilibrium model to assess the short-term economic impact of natural disasters Abstract: Computable general equilibrium (CGE) models have been widely used to assess the economic impact of natural disasters, but the models have not been fully validated by applying them to real disasters. This study focuses on validating a model for use in a short-run case in which the functional recovery of infrastructure and businesses occurred on a time scale of a few months. A special attempt is made to determine the parameter values of elasticity of substitutions, which play an important role in the effect on supply chains. In this study, a spatial CGE model, in which Japan is divided into nine regions, is constructed and applied to the case of the 2011 Great East Japan Earthquake and Tsunami. Through this application, the best estimates of the elasticity parameters generated relatively consistent estimates of production change compared with the observed change, both in severely affected regions and in other regions. Journal: Economic Systems Research Pages: 289-312 Issue: 3 Volume: 30 Year: 2018 Month: 7 X-DOI: 10.1080/09535314.2017.1369010 File-URL: http://hdl.handle.net/10.1080/09535314.2017.1369010 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:30:y:2018:i:3:p:289-312 Template-Type: ReDIF-Article 1.0 Author-Name: Ana-Isabel Guerra Author-X-Name-First: Ana-Isabel Author-X-Name-Last: Guerra Author-Name: Ferran Sancho Author-X-Name-First: Ferran Author-X-Name-Last: Sancho Title: On the need to compensate the compensating variation in CGE modeling Abstract: The message of this research is that in the standard calibrated setting of Computational General Equilibrium (CGE) models, the welfare measures typically used to compare benchmark with counterfactuals are numéraire dependent. This evaluation bias affects the compensating variation and the Konüs index of cost of living. We show that the equivalent variation is neutral regarding the choice of value units in calibrated models but would be affected as well in uncalibrated CGE models. We illustrate with a simple example and propose an even simpler theoretical solution to overcome these biases; all that is required to have correct welfare estimates is to compensate normalizing with a suitable price index. This type of correction is necessary to overcome the sometimes blind implementation of welfare measures in numerical general equilibrium analysis. We show that the induced quantitative errors may be substantial providing biased welfare estimates and misleading results. Journal: Economic Systems Research Pages: 313-322 Issue: 3 Volume: 30 Year: 2018 Month: 7 X-DOI: 10.1080/09535314.2017.1372371 File-URL: http://hdl.handle.net/10.1080/09535314.2017.1372371 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:30:y:2018:i:3:p:313-322 Template-Type: ReDIF-Article 1.0 Author-Name: Osman Aydoğuş Author-X-Name-First: Osman Author-X-Name-Last: Aydoğuş Author-Name: Çağaçan Değer Author-X-Name-First: Çağaçan Author-X-Name-Last: Değer Author-Name: Elif Tunalı Çalışkan Author-X-Name-First: Elif Author-X-Name-Last: Tunalı Çalışkan Author-Name: Gülçin Gürel Günal Author-X-Name-First: Gülçin Author-X-Name-Last: Gürel Günal Title: An input–output model of exchange-rate pass-through Abstract: The impact of the exchange rate on price formation is often debated through a mechanism called the exchange-rate pass-through. Studies of the pass-through generally rely on econometric analysis implemented on time series data. This study examines pass-through to the domestic price level through an input–output model. The proposed model is implemented on a sample of countries, and a number of different variables connected to the pass-through are examined. A comparison across countries and sectors highlights the importance of the construction sector in price formation. National income is negatively related to the pass-through. A high dependence on intermediate imports implies higher pass-through. Price level volatility and pass-through are positively related; whereas a country’s monetary policy stance has no apparent effect. The effect of exchange-rate volatility is unclear; it is negative for the real effective exchange rate, the connection is very weak in the case of the nominal exchange rate. Journal: Economic Systems Research Pages: 323-336 Issue: 3 Volume: 30 Year: 2018 Month: 7 X-DOI: 10.1080/09535314.2017.1374243 File-URL: http://hdl.handle.net/10.1080/09535314.2017.1374243 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:30:y:2018:i:3:p:323-336 Template-Type: ReDIF-Article 1.0 Author-Name: Umed Temursho Author-X-Name-First: Umed Author-X-Name-Last: Temursho Title: Intercountry feedback and spillover effects within the international supply and use framework: a Bayesian perspective Abstract: This paper proposes a new framework for the estimation of product-level global and interregional feedback and spillover (FS) factor multipliers. The framework is directly based on interregional supply and use tables (SUTs) that could be rectangular and gives a possibility of taking account of the inherent input–output data uncertainty problems. A Bayesian econometric approach is applied to the framework using the first version of international SUTs in the World Input–Output Database. The obtained estimates of the global and intercountry FS output effects are discussed and presented at the world, country and product levels for the period of 1995–2009. Journal: Economic Systems Research Pages: 337-358 Issue: 3 Volume: 30 Year: 2018 Month: 7 X-DOI: 10.1080/09535314.2017.1399863 File-URL: http://hdl.handle.net/10.1080/09535314.2017.1399863 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:30:y:2018:i:3:p:337-358 Template-Type: ReDIF-Article 1.0 Author-Name: Douglas S. Thomas Author-X-Name-First: Douglas S. Author-X-Name-Last: Thomas Author-Name: Anand M. Kandaswamy Author-X-Name-First: Anand M. Author-X-Name-Last: Kandaswamy Title: An examination of national supply-chain flow time Abstract: The US and other national governments invest in research and development to spur competitiveness in their domestic manufacturing industries. However, there are limited studies on identifying the research efforts that will have the largest possible return on investment, resulting in suboptimal returns. Manufacturers commonly measure production time in order to identify areas for efficiency improvement, but this is typically not applied at the national level where efficiency issues may cross between enterprises and industries. Such methods and results can be used to prioritize efficiency improvement efforts at an industry supply-chain level. This paper utilizes data on manufacturing inventory along with data on inter-industry interactions to develop a method for tracking industry-level flow time and identifying bottlenecks in US manufacturing. As a proof of concept, this method is applied to the production of three commodities: aircraft, automobiles/trucks, and computers. The robustness of bottleneck identification is tested utilizing Monte Carlo techniques. Journal: Economic Systems Research Pages: 359-379 Issue: 3 Volume: 30 Year: 2018 Month: 7 X-DOI: 10.1080/09535314.2017.1407296 File-URL: http://hdl.handle.net/10.1080/09535314.2017.1407296 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:30:y:2018:i:3:p:359-379 Template-Type: ReDIF-Article 1.0 Author-Name: Thomas von Brasch Author-X-Name-First: Thomas Author-X-Name-Last: von Brasch Author-Name: Marit Linnea Gjelsvik Author-X-Name-First: Marit Linnea Author-X-Name-Last: Gjelsvik Author-Name: Victoria Sparrman Author-X-Name-First: Victoria Author-X-Name-Last: Sparrman Title: Deunionization and job polarization – a macroeconomic model analysis for a small open economy Abstract: Declining unionization rates and job polarization are two important labor market developments of recent decades. A large body of literature has analyzed these phenomena separately, but little has been done to see whether there is a link between them. We employ a macroeconomic model for a small open economy with a large input–output core to analyze how deunionization may cause job polarization. Our analysis shows that medium-skilled workers are negatively affected by deunionization, mainly as a result of the heterogeneity of the elasticities of substitution between different types of labor. While the elasticities of substitution between high- and medium-skilled labor are relatively low, the elasticities of substitution between medium- and low-skilled are relatively high. As a result, when deunionization leads to increased wage dispersion, we find that demand for low-skilled increases at the expense of medium-skilled labor, thus yielding a more polarized labor market. Journal: Economic Systems Research Pages: 380-399 Issue: 3 Volume: 30 Year: 2018 Month: 7 X-DOI: 10.1080/09535314.2018.1468738 File-URL: http://hdl.handle.net/10.1080/09535314.2018.1468738 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:30:y:2018:i:3:p:380-399 Template-Type: ReDIF-Article 1.0 Author-Name: Rafa Madariaga Author-X-Name-First: Rafa Author-X-Name-Last: Madariaga Title: Factors driving sectoral and occupational employment changes during the Spanish boom (1995–2005) Abstract: Spain's economy grew at a real annual average rate of over 3.5% between 1995 and 2005. Total employment increased by more than five million. This process altered the sectoral and occupational structure of employment. The dynamics of final demand, technology and labour requirements linked to technology and labour market institutions mostly drive shifts in the structure of employment. We analyse their effects and relative weights on private employment growth in an input–output framework, by means of structural decomposition. The analysis of the occupational structure is a novelty. Sectoral and occupational structures of employment are receiving a great deal of attention: the productivity growth and economic prospects of service economies and the debate between skilling and polarization are, respectively, the main issues. This paper provides useful insights on the dynamics of the structure of employment during a process of vigorous job growth. Journal: Economic Systems Research Pages: 400-421 Issue: 3 Volume: 30 Year: 2018 Month: 7 X-DOI: 10.1080/09535314.2018.1474182 File-URL: http://hdl.handle.net/10.1080/09535314.2018.1474182 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:30:y:2018:i:3:p:400-421 Template-Type: ReDIF-Article 1.0 Author-Name: Gulay Gunluk-Senesen Author-X-Name-First: Gulay Author-X-Name-Last: Gunluk-Senesen Author-Name: Tolga Kaya Author-X-Name-First: Tolga Author-X-Name-Last: Kaya Author-Name: Umit Senesen Author-X-Name-First: Umit Author-X-Name-Last: Senesen Title: Promoting investment in the Turkish construction sector: a structural path analysis Abstract: The construction sector in Turkey boomed in the period between the turn of the millennium and the onset of the global crisis. This paper studies the employment generation effects of growth of this sector, taking into account that it not only depends on domestic production factors but also on imported inputs. In order to unravel the interactions of the construction sector with the rest of the economy, structural path analysis of both labour and imported intermediate input demand generation is used based on the 2002 and 2009 WIOD data for Turkey. The findings indicate that labour linkages weakened between 2002 and 2009, while import linkages became slightly stronger. The sectors that have played key roles in this are identified, as are the linkages between these. The findings have implications for the persistent unemployment and current account deficits in Turkey. Journal: Economic Systems Research Pages: 422-438 Issue: 3 Volume: 30 Year: 2018 Month: 7 X-DOI: 10.1080/09535314.2018.1477739 File-URL: http://hdl.handle.net/10.1080/09535314.2018.1477739 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:30:y:2018:i:3:p:422-438 Template-Type: ReDIF-Article 1.0 Author-Name: Yasuhide Okuyama Author-X-Name-First: Yasuhide Author-X-Name-Last: Okuyama Author-Name: Krista D. Yu Author-X-Name-First: Krista D. Author-X-Name-Last: Yu Title: Return of the inoperability Abstract: There has been unrest in the research community investigating the inoperability of an economic system under disaster situations. The inoperability input–output model (IIM), which is very popular in the risk management field, has become a center of argument, particularly from the input–output researchers, that IIM is a straightforward application of the standard Leontief input–output model. This paper revisits the concept of inoperability, rather than IIM, and proposes its new role in disaster impact analysis using a conventional tool, i.e. the RAS method, for illustrating how the inoperability of an economic system in the aftermath of disaster can be evaluated. The proposed framework is employed to examine the inoperability of industries resulting from the 1995 Kobe earthquake. The findings of the analysis reveal the usefulness of inoperability concept that can even incorporate resilience (gained operability) using the proposed framework of this paper. Journal: Economic Systems Research Pages: 467-480 Issue: 4 Volume: 31 Year: 2019 Month: 10 X-DOI: 10.1080/09535314.2018.1510383 File-URL: http://hdl.handle.net/10.1080/09535314.2018.1510383 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:31:y:2019:i:4:p:467-480 Template-Type: ReDIF-Article 1.0 Author-Name: Luis Daniel Torres-González Author-X-Name-First: Luis Daniel Author-X-Name-Last: Torres-González Author-Name: Jangho Yang Author-X-Name-First: Jangho Author-X-Name-Last: Yang Title: The persistent statistical structure of the US input–output coefficient matrices: 1963–2007 Abstract: The paper finds evidence for the existence of a statistical structure in the US input–output coefficient $ (\mathbf {A}) $ (A) matrices for 1963–2007 and characterizes the identified statistical regularities. For various aspects of $ \mathbf {A} $ A matrices, we find smooth and unimodal empirical distributions (EDs) with a remarkable stability in their functional form for most of the samples. The EDs of all entries, row sums, and the entries of the (left- and right-hand) Perron–Frobenius eigenvectors are well described by fat-tailed distributions, while the EDs of column sums and eigenvalues' moduli are explained by the normal and the beta distribution. The paper provides several economic interpretations of these statistical results as well as some implications and potential uses for structural and stochastic input–output analysis. Journal: Economic Systems Research Pages: 481-504 Issue: 4 Volume: 31 Year: 2019 Month: 10 X-DOI: 10.1080/09535314.2018.1561425 File-URL: http://hdl.handle.net/10.1080/09535314.2018.1561425 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:31:y:2019:i:4:p:481-504 Template-Type: ReDIF-Article 1.0 Author-Name: Erik Dietzenbacher Author-X-Name-First: Erik Author-X-Name-Last: Dietzenbacher Author-Name: Bob van Burken Author-X-Name-First: Bob Author-X-Name-Last: van Burken Author-Name: Yasushi Kondo Author-X-Name-First: Yasushi Author-X-Name-Last: Kondo Title: Hypothetical extractions from a global perspective Abstract: The hypothetical extraction method (HEM) has been widely used to measure interindustry linkages and the importance of industries. HEM considers the hypothetical situation in which a certain industry is no longer operational. HEM was developed for national economies, using national input–output tables. When performing HEM, it is assumed (often implicitly) that the input requirements that were originally provided by the extracted industry are met by additional imports in the post-extraction situation. Applying HEM to global multiregional input–output tables then causes serious problems. It is no longer sufficient to assume that the required inputs are imported. Instead, it is necessary to indicate explicitly how much is imported from each origin to replace the original inputs. Our adaptation of HEM is the global extraction method (GEM). As an illustration, GEM is applied to the extraction of the motor vehicle industry in China, the US, and Germany, using the 2014 WIOD input–output table. Journal: Economic Systems Research Pages: 505-519 Issue: 4 Volume: 31 Year: 2019 Month: 10 X-DOI: 10.1080/09535314.2018.1564135 File-URL: http://hdl.handle.net/10.1080/09535314.2018.1564135 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:31:y:2019:i:4:p:505-519 Template-Type: ReDIF-Article 1.0 Author-Name: Nan Zhang Author-X-Name-First: Nan Author-X-Name-Last: Zhang Author-Name: Xiuzhen Zhao Author-X-Name-First: Xiuzhen Author-X-Name-Last: Zhao Title: Measuring global flow of funds: focus on China, Japan, and the United States Abstract: This paper aims to establish a new statistical framework for measuring global flow of funds (GFF) based on its inherent mechanisms. It advances a previous theoretical discussion and develops a practical operational statistical matrix. Based on theoretical and practical possibilities the paper gets existing data from the International Investment Position, the Coordinated Direct Investment Survey, the Coordinated Portfolio Investment Survey, and International Banking Statistics are integrated for measuring GFF. The main outcome is a prototype GFF matrix that includes stock data geographically disaggregated by country/region and selected financial instruments. The paper presents a GFF Matrix compiled with the pattern of ‘Country vis-à-vis Country’ matrix, and through using the GFF matrix to analyze the basic status, mutual relationship and existing problems between China, Japan, and the United States in the external financial positions. Journal: Economic Systems Research Pages: 520-550 Issue: 4 Volume: 31 Year: 2019 Month: 10 X-DOI: 10.1080/09535314.2019.1574719 File-URL: http://hdl.handle.net/10.1080/09535314.2019.1574719 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:31:y:2019:i:4:p:520-550 Template-Type: ReDIF-Article 1.0 Author-Name: João F. D. Rodrigues Author-X-Name-First: João F. D. Author-X-Name-Last: Rodrigues Author-Name: Antonio F. Amores Author-X-Name-First: Antonio F. Author-X-Name-Last: Amores Author-Name: Rui Paulo Author-X-Name-First: Rui Author-X-Name-Last: Paulo Title: Bayesian selection of technology assumptions for the transformation from supply-use to input–output tables Abstract: In the construction of input–output models from supply-use tables, technology assumptions disambiguate how an industry uses inputs in the production recipe of multiple outputs. This paper uses Bayes' theorem to select technology assumptions, taking into account empirical observations. The paper presents a formulation to explore hybrids between product and industry technology assumptions in product-by-product tables. We then present Markov chain Monte-Carlo techniques to implement the Bayesian method for selecting technology assumptions. We apply the method in a case study using Eurostat supply-use tables of 2004 and 2005, exhibiting a volume of secondary products of less than 13%, and 59 products and industries per country. The results show that the choice of technology is not important, given that there is no strong evidence in favour of any of them. Journal: Economic Systems Research Pages: 551-573 Issue: 4 Volume: 31 Year: 2019 Month: 10 X-DOI: 10.1080/09535314.2019.1583171 File-URL: http://hdl.handle.net/10.1080/09535314.2019.1583171 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:31:y:2019:i:4:p:551-573 Template-Type: ReDIF-Article 1.0 Author-Name: Rosa Duarte Author-X-Name-First: Rosa Author-X-Name-Last: Duarte Author-Name: Cristina Sarasa Author-X-Name-First: Cristina Author-X-Name-Last: Sarasa Author-Name: Mònica Serrano Author-X-Name-First: Mònica Author-X-Name-Last: Serrano Title: Structural change and female participation in recent economic growth: a multisectoral analysis for the Spanish economy Abstract: Economic growth has different impacts on gender gaps. In recent decades the growing participation of women in the labour market has reduced the gender employment gap, however a notable gender pay gap still persists standing at around 15% on average in the European Union. In this context, this paper evaluates the impact of economic growth patterns on the evolution of gender employment and pay gaps. First, sectorial feminization, direct discrimination, and structural change factors are identified and evaluated as ways to explain changes observed in the gender pay gap. Second, we explore the influence of demand, technology, and intensity factors on the evolution of employment combining gender, skill, sectorial, and temporal perspectives. As a case study, we examine Spanish economic growth from 1980 to 2007 and the influences on the size, composition (by skill), and distribution (by sector) of female and male employment, as well as the consequences for gender gaps. Our results show that structural change contributed to reduce the gender employment gap in Spain; while the evolution of the gender pay gap is less conclusive, following a sort of inverted U-shape. This paper shows the suitability and potential of the multisectorial input–output framework to analyse structural and technological changes and their impacts on the gender employment and pay gaps. Journal: Economic Systems Research Pages: 574-593 Issue: 4 Volume: 31 Year: 2019 Month: 10 X-DOI: 10.1080/09535314.2019.1589425 File-URL: http://hdl.handle.net/10.1080/09535314.2019.1589425 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:31:y:2019:i:4:p:574-593 Template-Type: ReDIF-Article 1.0 Author-Name: Manfred Lenzen Author-X-Name-First: Manfred Author-X-Name-Last: Lenzen Title: Aggregating input–output systems with minimum error Abstract: Recent advances in multi-region input-output (IO) table construction have led to large databases becoming available. Some of these databases currently demand too much computer memory or user cognition to be handled effectively outside high-performance environments, especially for applications such as virtual laboratories, computable general equilibrium modelling, linear programming, series expansion, or structural decomposition analysis, thus inhibiting their widespread use by analysts and decision-makers. Aggregation is an obvious solution; but there is a need for structured approaches to aggregating an IO system in a way that does not compromise the ability to effectively answer the research question at hand. In this article, I describe how structural path analysis can be used to realise a computationally inexpensive method for aggregating IO systems whilst minimising aggregation errors. I show that there exists no one-fits-all strategy, but that optimal aggregation depends on the research question at hand. Journal: Economic Systems Research Pages: 594-616 Issue: 4 Volume: 31 Year: 2019 Month: 10 X-DOI: 10.1080/09535314.2019.1609911 File-URL: http://hdl.handle.net/10.1080/09535314.2019.1609911 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:31:y:2019:i:4:p:594-616 Template-Type: ReDIF-Article 1.0 Author-Name: Mehdi Bagheri Author-X-Name-First: Mehdi Author-X-Name-Last: Bagheri Author-Name: Masood Sheikh Alivand Author-X-Name-First: Masood Sheikh Author-X-Name-Last: Alivand Author-Name: Mohammad Alikarami Author-X-Name-First: Mohammad Author-X-Name-Last: Alikarami Author-Name: Christopher A. Kennedy Author-X-Name-First: Christopher A. Author-X-Name-Last: Kennedy Author-Name: Ganesh Doluweera Author-X-Name-First: Ganesh Author-X-Name-Last: Doluweera Author-Name: Zeus Guevara Author-X-Name-First: Zeus Author-X-Name-Last: Guevara Title: Developing a multiple-criteria decision analysis for green economy transition: a Canadian case study Abstract: Identifying planning strategies for the transition to a green economy is a formidable challenge. We proposed a novel multiple-criteria decision analysis model which can quantitatively identify the socio-economic and environmental impacts of various government and public policies. We applied the model to four practical scenarios in Canada for determining the optimal final demand that maximizes the country's GDP and employment while minimizing GHG emissions for small, short-term changes. As a result, the model suggested potential ways to simultaneously achieve a GDP growth of 2.5 billion CAD and creation of over 25,000 new jobs, and a saving of 2514 kt CO2. As per the final demand, the electrification of domestic heating and transport should be more promoted. The proposed analysis tool will provide decision-makers with the ability to explore the design and effects of policy reforms, regulatory changes, and targeted public expenditure strategies, thereby overcoming barriers towards a green economy. Journal: Economic Systems Research Pages: 617-641 Issue: 4 Volume: 31 Year: 2019 Month: 10 X-DOI: 10.1080/09535314.2019.1610363 File-URL: http://hdl.handle.net/10.1080/09535314.2019.1610363 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:31:y:2019:i:4:p:617-641 Template-Type: ReDIF-Article 1.0 Author-Name: Kailan Tian Author-X-Name-First: Kailan Author-X-Name-Last: Tian Author-Name: Erik Dietzenbacher Author-X-Name-First: Erik Author-X-Name-Last: Dietzenbacher Author-Name: Richard Jong-A-Pin Author-X-Name-First: Richard Author-X-Name-Last: Jong-A-Pin Title: Measuring industrial upgrading: applying factor analysis in a global value chain framework Abstract: A key question for promoting international competition is how to improve the position of countries and industries in global value chains (GVCs). The first step is to properly measure industrial upgrading in GVCs. This is not a trivial issue because upgrading has not been defined unambiguously. Several authors have used different (and sometimes related) measures, all of which indicate certain aspects of upgrading. Rather than trying to find the single, ultimate measure of upgrading, we propose a different approach. We examine the multidimensionality of industrial upgrading, using eight indicators in factor analysis. Four of the eight indicators adopt the GVC perspective and include, for example, the growth of the share in value-added exports. We provide three quantitative dimensions of industrial upgrading: process upgrading, product upgrading, and skill upgrading. With these dimensions, we compare and analyze the upgrading of different countries and industries using the World Input–Output Database. Journal: Economic Systems Research Pages: 642-664 Issue: 4 Volume: 31 Year: 2019 Month: 10 X-DOI: 10.1080/09535314.2019.1610728 File-URL: http://hdl.handle.net/10.1080/09535314.2019.1610728 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:31:y:2019:i:4:p:642-664 Template-Type: ReDIF-Article 1.0 Author-Name: Andre Fernandes Tomon Avelino Author-X-Name-First: Andre Fernandes Tomon Author-X-Name-Last: Avelino Title: Disaggregating input–output tables in time: the temporal input–output framework Abstract: The input–output framework has evolved dramatically since its initial formulation. New analytical techniques and extensions have allowed a more comprehensive assessment of the economy and expanded its applicability. Nonetheless, the core of the framework has remained unchanged: an annually compiled input–output table, which conveys monetary flows between sectors in a region in a particular year. Hence, the technical coefficients derived from it are ‘average’ input compositions, neglecting fluctuations in production capacity, seasonality and temporal shocks within that period. This paper develops a consistent methodology to disaggregate the annual input–output table in its time dimension in order to estimate intra-year input–output matrices with distinct technical structures for a particular year. The main advantages in relation to the annual model are to allow seasonal effects to be studied within the input–output framework, to better understand the process of coefficient change and to offer a more comprehensive dynamic view of production. Journal: Economic Systems Research Pages: 313-334 Issue: 3 Volume: 29 Year: 2017 Month: 7 X-DOI: 10.1080/09535314.2017.1290587 File-URL: http://hdl.handle.net/10.1080/09535314.2017.1290587 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:29:y:2017:i:3:p:313-334 Template-Type: ReDIF-Article 1.0 Author-Name: Keisuke Nansai Author-X-Name-First: Keisuke Author-X-Name-Last: Nansai Author-Name: Kenichi Nakajima Author-X-Name-First: Kenichi Author-X-Name-Last: Nakajima Author-Name: Sangwon Suh Author-X-Name-First: Sangwon Author-X-Name-Last: Suh Author-Name: Shigemi Kagawa Author-X-Name-First: Shigemi Author-X-Name-Last: Kagawa Author-Name: Yasushi Kondo Author-X-Name-First: Yasushi Author-X-Name-Last: Kondo Author-Name: Wataru Takayanagi Author-X-Name-First: Wataru Author-X-Name-Last: Takayanagi Author-Name: Yosuke Shigetomi Author-X-Name-First: Yosuke Author-X-Name-Last: Shigetomi Title: The role of primary processing in the supply risks of critical metals Abstract: This study seeks to understand the role of primary processing, i.e. the first post-mining stage, in supply risk, by means of a case study on three critical metals (neodymium, cobalt, and platinum) in the context of Japan. Applying the ‘footprint’ concept with a multiregional input–output model, we have quantified the direct and indirect vulnerability of the Japanese economy to such risks. Considering the supply risks associated with primary processors, we find that Japanese final consumers are exposed to relatively higher supply risks for neodymium as compared with cobalt and platinum. Our study shows that the primary processing stage of a metal’s supply chain may contribute significantly to the overall supply risks, suggesting that this stage should be taken into due account in understanding and mitigating supply-chain vulnerability through, e.g. supplier diversification and alternative material development. Journal: Economic Systems Research Pages: 335-356 Issue: 3 Volume: 29 Year: 2017 Month: 7 X-DOI: 10.1080/09535314.2017.1295923 File-URL: http://hdl.handle.net/10.1080/09535314.2017.1295923 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:29:y:2017:i:3:p:335-356 Template-Type: ReDIF-Article 1.0 Author-Name: Marlies H. Schütz Author-X-Name-First: Marlies H. Author-X-Name-Last: Schütz Title: Australia's regional innovation systems: inter-industry interaction in innovative activities in three Australian territories Abstract: Regional specifics reveal in differences in economic activity and structure, the institutional, socio-economic and cultural environment and not least in the capability of regions to create new knowledge and to generate innovations. Focusing on the regional level, this paper for three Australian territories (New South Wales, Victoria and Queensland) explores patterns of innovative activities in their private business sectors. Furthermore, these patterns are compared to specifics of each region's economic structure. We make use of input–output-based innovation flow networks, which are directed and weighted instead of binary. The value added of the proposed analysis is that we are able to trace a variety of different aspects related to the structure of innovative activities for each territory. It gets evident that mostly innovative activities in each territory are not strong in ‘niche’ branches but in fields of intense economic activity, signalising the high path-dependency of innovative activities in a specific geographical environment. Journal: Economic Systems Research Pages: 357-384 Issue: 3 Volume: 29 Year: 2017 Month: 7 X-DOI: 10.1080/09535314.2017.1301886 File-URL: http://hdl.handle.net/10.1080/09535314.2017.1301886 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:29:y:2017:i:3:p:357-384 Template-Type: ReDIF-Article 1.0 Author-Name: Zuzana Smeets Kristkova Author-X-Name-First: Zuzana Author-X-Name-Last: Smeets Kristkova Author-Name: Cornelis Gardebroek Author-X-Name-First: Cornelis Author-X-Name-Last: Gardebroek Author-Name: Michiel van Dijk Author-X-Name-First: Michiel Author-X-Name-Last: van Dijk Author-Name: Hans van Meijl Author-X-Name-First: Hans Author-X-Name-Last: van Meijl Title: The impact of R&D on factor-augmenting technical change – an empirical assessment at the sector level Abstract: The aim of the paper is to quantify endogenous factor-augmenting technical change driven by R&D investments in a panel of 11 OECD countries over 1987–2007. This paper contributes to the scant empirical evidence on the speed, sources and direction of technical change for various sectors and production factors. Assuming cost-minimization behavior, a CES framework is used to derive a system of equations that is estimated by a GMM system estimator. The estimated factor-augmenting technology parameters show that in most sectors, technical change was labor-augmenting and labor-saving. Statistically significant effects of manufacturing and services R&D were found on factor-augmenting technical change (with the highest R&D elasticities found in the high-tech manufacturing and transport, storage and communication sectors). Whereas ‘in-house’ R&D stimulates total factor productivity, R&D spilled over to other sectors has a capital-augmenting effect accompanied by a higher use of labor. The results of this study provide a starting point for incorporating endogenous factor-augmenting technical change in impact assessment models aimed at broad policy analysis including economic growth, food security or climate change. Journal: Economic Systems Research Pages: 385-417 Issue: 3 Volume: 29 Year: 2017 Month: 7 X-DOI: 10.1080/09535314.2017.1316707 File-URL: http://hdl.handle.net/10.1080/09535314.2017.1316707 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:29:y:2017:i:3:p:385-417 Template-Type: ReDIF-Article 1.0 Author-Name: Cheol-Joo Cho Author-X-Name-First: Cheol-Joo Author-X-Name-Last: Cho Title: A note on distortions from estimating the regional impacts of exogenous changes in output Abstract: This paper demonstrates both theoretically and empirically that when outputs instead of final demands are exogenously predetermined, the traditional Leontief final demand model overestimates economic impact, and even more so in a multiregional context. We assess this premise vis-à-vis the Leontief output model using the 2013 interregional input–output table of the Republic of Korea. We find that from a multiregional perspective the standard Leontief final demand model yields substantially biased output multipliers for Chungbuk Province. Journal: Economic Systems Research Pages: 418-429 Issue: 3 Volume: 29 Year: 2017 Month: 7 X-DOI: 10.1080/09535314.2017.1326094 File-URL: http://hdl.handle.net/10.1080/09535314.2017.1326094 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:29:y:2017:i:3:p:418-429 Template-Type: ReDIF-Article 1.0 Author-Name: Yu-Wen Su Author-X-Name-First: Yu-Wen Author-X-Name-Last: Su Author-Name: Hao-Yen Yang Author-X-Name-First: Hao-Yen Author-X-Name-Last: Yang Author-Name: Chih-Hsun Lin Author-X-Name-First: Chih-Hsun Author-X-Name-Last: Lin Title: Increase of electricity price and energy efficiency: analysis using the macroeconomic interindustry model of Taiwan Abstract: From 2012 to 2013, the price of electricity in Taiwan increased by 19.78%. This large increase forced producers to invest in improving electricity efficiency. In this paper, the macroeconomic interindustry model of Taiwan (MEIT) is developed to study the economic effects of high electricity prices and consequential improvement in energy efficiency. MEIT describes the structure of 47 industries, from both real and price-income approaches. To resolve inconsistent data, RAS is employed. A technical model is also integrated to consider technical feasibility, which offsets the usual shortcomings of technological analysis in an economic model. The iron and steel industry is taken as a case study. Estimated results indicate that higher electricity prices negatively affect Taiwan’s economy. However, improving energy efficiency can reduce some of this effect. Journal: Economic Systems Research Pages: 430-451 Issue: 3 Volume: 29 Year: 2017 Month: 7 X-DOI: 10.1080/09535314.2017.1323726 File-URL: http://hdl.handle.net/10.1080/09535314.2017.1323726 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:29:y:2017:i:3:p:430-451 Template-Type: ReDIF-Article 1.0 Author-Name: Jan Oosterhaven Author-X-Name-First: Jan Author-X-Name-Last: Oosterhaven Title: On the limited usability of the inoperability IO model Abstract: This note shows that the inoperability input–output model (IIM) estimates only a part of mainly the negative indirect economic impacts of disasters, whereas it neglects most of the positive indirect impacts. This means that the IIM is not suited to prioritize industries for policy interventions that aim at reducing the negative impacts of such disasters. Besides, this note shows that the application of the IIM is problematic and tends to overestimate the subset of impacts that the model is able to quantify. Finally, we identify two approaches that much better capture the variety of different disaster impacts. Journal: Economic Systems Research Pages: 452-461 Issue: 3 Volume: 29 Year: 2017 Month: 7 X-DOI: 10.1080/09535314.2017.1301395 File-URL: http://hdl.handle.net/10.1080/09535314.2017.1301395 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:29:y:2017:i:3:p:452-461 Template-Type: ReDIF-Article 1.0 Author-Name: Utz-Peter Reich Author-X-Name-First: Utz-Peter Author-X-Name-Last: Reich Title: Who pays for whom? Elements of a macroeconomic approach to income inequality Abstract: National income is generated through national production in the form of ‘value added’; it is expended on goods and services in the form of ‘disposable’ or ‘net’ income. In this paper, I investigate what happens in between. The circuit of income flows generated in this way is comparable to the circuit of product flows, in its complexity. It can be analysed, so the tenet of the paper, in a similar way, by means of well-known tools of input–output (IO) analysis; this on the pre-condition, however, that you draw out the institutional framework of an economy in similar detail as is now customarily done for production units in IO analysis. Existing data do not suffice for the purpose, at present; this paper shows, by way of some exemplary calculations, what insight into the mechanism of national income distribution is gained if the necessary data, normally in the form of a large social accounting matrix, are provided. Journal: Economic Systems Research Pages: 201-218 Issue: 2 Volume: 30 Year: 2018 Month: 4 X-DOI: 10.1080/09535314.2017.1369395 File-URL: http://hdl.handle.net/10.1080/09535314.2017.1369395 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:30:y:2018:i:2:p:201-218 Template-Type: ReDIF-Article 1.0 Author-Name: José M. Rueda-Cantuche Author-X-Name-First: José M. Author-X-Name-Last: Rueda-Cantuche Author-Name: Antonio F. Amores Author-X-Name-First: Antonio F. Author-X-Name-Last: Amores Author-Name: Joerg Beutel Author-X-Name-First: Joerg Author-X-Name-Last: Beutel Author-Name: Isabelle Remond-Tiedrez Author-X-Name-First: Isabelle Author-X-Name-Last: Remond-Tiedrez Title: Assessment of European Use tables at basic prices and valuation matrices in the absence of official data Abstract: Input–Output modellers are often faced with the task of estimating missing Use tables at basic prices and also valuation matrices of the individual countries. This paper examines a selection of estimation methods applied to the European context where the analysts are not in possession of superior data. The estimation methods are restricted to the use of automated methods that would require more than just the row and column sums of the tables (as in projections) but less than a combination of various conflicting information (as in compilation). The results are assessed against the official Supply, Use and Input–Output tables of Belgium, Germany, Italy, Netherlands, Finland, Austria and Slovakia by using matrix difference metrics. The main conclusion is that using the structures of previous years usually performs better than any other approach. Journal: Economic Systems Research Pages: 252-270 Issue: 2 Volume: 30 Year: 2018 Month: 4 X-DOI: 10.1080/09535314.2017.1372370 File-URL: http://hdl.handle.net/10.1080/09535314.2017.1372370 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:30:y:2018:i:2:p:252-270 Template-Type: ReDIF-Article 1.0 Author-Name: Xuemei Jiang Author-X-Name-First: Xuemei Author-X-Name-Last: Jiang Author-Name: Xiaolin Lu Author-X-Name-First: Xiaolin Author-X-Name-Last: Lu Author-Name: Jian Xu Author-X-Name-First: Jian Author-X-Name-Last: Xu Title: How do interregional spillovers influence the distribution of technology? The case of Chinese manufacturing Abstract: The Chinese economy displays considerable inequality across regions. In this paper, we analyzed the distribution of intermediate input shares in China. We use regional input–output tables from 2007 and find that regions with higher GDP per capita generally had higher input shares, regardless of sector. Then, using intermediate input shares as a proxy of technology, we analyzed the pattern of regional technology distributions across manufacturing sectors as well as the extent of interregional technology spillovers. Our results indicate that interregional backward spillovers have significantly positive impacts on the shape of the technology distributions in eastern (coastal) regions. By contrast, the vertical spillovers of the central and western regions are largely dominated by intra-regional forward effects. Our results suggest that the shift of Chinese manufacturing from coastal to inland regions with lower production costs cannot reduce the imbalance among regions unless the technology gap is narrowed. Journal: Economic Systems Research Pages: 219-237 Issue: 2 Volume: 30 Year: 2018 Month: 4 X-DOI: 10.1080/09535314.2017.1393654 File-URL: http://hdl.handle.net/10.1080/09535314.2017.1393654 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:30:y:2018:i:2:p:219-237 Template-Type: ReDIF-Article 1.0 Author-Name: Martin C. Serpell Author-X-Name-First: Martin C. Author-X-Name-Last: Serpell Title: Incorporating data quality improvement into supply–use table balancing Abstract: This paper investigates the benefits of using a boundary tightening algorithm to improve the quality of the data used in supply and use table (SUT) balancing, building on similarities with certain approaches to statistical disclosure control. Boundary tightening was shown to significantly improve the quality of the finally balanced SUTs well beyond that of existing techniques. Most notably, improvements occurred when boundary tightening was applied prior to the balancing process – showing that it can be used as a valuable preliminary to other approaches. It also multiplied the improvement in SUTs quality when more accurate updated information was added to the SUTs. The findings of this paper strongly suggest that this boundary tightening algorithm will improve the quality of the output of the balancing process and it is equally likely to be useful when applied to other processes that handle uncertain data. Journal: Economic Systems Research Pages: 271-288 Issue: 2 Volume: 30 Year: 2018 Month: 4 X-DOI: 10.1080/09535314.2017.1396962 File-URL: http://hdl.handle.net/10.1080/09535314.2017.1396962 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:30:y:2018:i:2:p:271-288 Template-Type: ReDIF-Article 1.0 Author-Name: Tsutomu Harada Author-X-Name-First: Tsutomu Author-X-Name-Last: Harada Title: A model of intersectoral flow of technology using technology and innovation flow matrices Abstract: This paper builds a simple general equilibrium model that sheds new light on the mechanism of intersectoral flows of technology. It explicitly models the production of technology using diverse technology components as inputs. The model shows that demand shocks do not cause innovation while technology shocks as deviations from a balanced growth path induce asymmetric productivity changes across sectors. We also conduct a simple quantitative analysis using recent Japanese R&D data, which shows that most productivity effects remain within the bounds of the sector. We find some important exceptions to this rule, however, in particular for shocks occurring in information technology and precision instruments. Journal: Economic Systems Research Pages: 238-251 Issue: 2 Volume: 30 Year: 2018 Month: 4 X-DOI: 10.1080/09535314.2018.1423545 File-URL: http://hdl.handle.net/10.1080/09535314.2018.1423545 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:30:y:2018:i:2:p:238-251 Template-Type: ReDIF-Article 1.0 Author-Name: Yuwan Duan Author-X-Name-First: Yuwan Author-X-Name-Last: Duan Author-Name: Erik Dietzenbacher Author-X-Name-First: Erik Author-X-Name-Last: Dietzenbacher Author-Name: Xuemei Jiang Author-X-Name-First: Xuemei Author-X-Name-Last: Jiang Author-Name: Xikang Chen Author-X-Name-First: Xikang Author-X-Name-Last: Chen Author-Name: Cuihong Yang Author-X-Name-First: Cuihong Author-X-Name-Last: Yang Title: Why has China’s vertical specialization declined? Abstract: Vertical specialization (VS) is quantified by the VS share, which measures the average import content per dollar of exports. A characteristic of China’s export trade is its strong dependence on assembly and processing activities. To take proper account of this, China’s VS shares should explicitly distinguish processing export production from other production. We estimate China’s annual VS shares from 2000 to 2012—the latest year for which a special input–output table is available that makes such an explicit distinction. We find that VS shares increased from 2000 to 2004 and subsequently started to decrease. To explore why it has declined, we introduce a new structural decomposition approach. We find that the decrease of the VS share appears to have been driven mainly by the substitution of imported intermediates by domestic products. This occurred in particular in the production of exports, which implies an upgrading of China’s position in global value chains. Journal: Economic Systems Research Pages: 178-200 Issue: 2 Volume: 30 Year: 2018 Month: 4 X-DOI: 10.1080/09535314.2018.1431610 File-URL: http://hdl.handle.net/10.1080/09535314.2018.1431610 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:30:y:2018:i:2:p:178-200 Template-Type: ReDIF-Article 1.0 Author-Name: Kazusuke Tsujimura Author-X-Name-First: Kazusuke Author-X-Name-Last: Tsujimura Author-Name: Masako Tsujimura Author-X-Name-First: Masako Author-X-Name-Last: Tsujimura Title: A flow of funds analysis of the US quantitative easing Abstract: After the Bank of Japan first introduced a quantitative easing policy in 2001, Tsujimura and Mizoshita [(2003) Asset-Liability-Matrix Analysis Derived From Flow-of-Funds Accounts: the Bank of Japan’s Quantitative Monetary Policy Examined. Economic Systems Research, 15, 51–67] applied input–output analysis to analyze its effects. Some central bankers criticized the analysis as misleading because it was based on the asset–liability matrix derived from the financial balance sheets. In this vein, the real policy effects on production and employment were overlooked. Herein, we answer such criticism by introducing a new method of tracking the flow of funds. It covers both real and financial transactions to show the mechanism and the effects of the US quantitative easing. Journal: Economic Systems Research Pages: 137-177 Issue: 2 Volume: 30 Year: 2018 Month: 4 X-DOI: 10.1080/09535314.2018.1443908 File-URL: http://hdl.handle.net/10.1080/09535314.2018.1443908 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:30:y:2018:i:2:p:137-177 Template-Type: ReDIF-Article 1.0 Author-Name: Soulixay Hongsakhone Author-X-Name-First: Soulixay Author-X-Name-Last: Hongsakhone Author-Name: Masaru Ichihashi Author-X-Name-First: Masaru Author-X-Name-Last: Ichihashi Title: Measurement of reciprocity in a village through social networks Abstract: This paper examines measuring of interdependency among households through their transactions by using information of individual villagers in a disadvantaged area in a developing country. To obtain the information, we created a village input–output table (VIOT) from household survey data conducted in a rural village in Lao PDR in 2015 and 2016. Because each household in the village is not only a producer but also a consumer who is trading products and consuming them, the VIOT is a simple but useful tool to know the economic transactions among villagers. The main findings are that four higher-income families, which mainly trade rice very frequently, are playing key roles in the village economy, and the interdependency among higher-income households is stronger than among lower/middle-income households. Additionally, this method can be used to form an economic policy such as poverty reduction because of informing households playing a key role in the village. Journal: Economic Systems Research Pages: 1-20 Issue: 1 Volume: 31 Year: 2019 Month: 1 X-DOI: 10.1080/09535314.2018.1467882 File-URL: http://hdl.handle.net/10.1080/09535314.2018.1467882 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:31:y:2019:i:1:p:1-20 Template-Type: ReDIF-Article 1.0 Author-Name: Olga Kiuila Author-X-Name-First: Olga Author-X-Name-Last: Kiuila Author-Name: Anil Markandya Author-X-Name-First: Anil Author-X-Name-Last: Markandya Author-Name: Milan Ščasný Author-X-Name-First: Milan Author-X-Name-Last: Ščasný Title: Taxing air pollutants and carbon individually or jointly: results from a CGE model enriched by an emission abatement sector Abstract: We analyse the separate and collective impacts of emissions taxation to understand the internalisation effects of externalities. The analysis is carried out using a static computable general equilibrium model, with unemployment, bottom-up abatement technologies represented by a step function, and detailed emission coefficients. Environmental and health external costs are quantified using the ExternE’s Impact Pathway Approach. Emissions, as a result of environmental taxation, fall through reduced output, production factor substitution, and increased end of pipe abatement activity. The analysis shows that a full internalisation of environmental externalities can result in modest overall economic and environmental welfare gains. There are, however, differences in terms of employment and output, depending on what combination of taxes are applied, which sectors are covered, and how fiscal revenues are redistributed. Air quality benefits range from €35–75 per ton of CO2 abated. Total environmental benefits always exceed GDP loss and the associated welfare loss. Journal: Economic Systems Research Pages: 21-43 Issue: 1 Volume: 31 Year: 2019 Month: 1 X-DOI: 10.1080/09535314.2018.1508000 File-URL: http://hdl.handle.net/10.1080/09535314.2018.1508000 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:31:y:2019:i:1:p:21-43 Template-Type: ReDIF-Article 1.0 Author-Name: Kijin Kim Author-X-Name-First: Kijin Author-X-Name-Last: Kim Author-Name: Geoffrey J. D. Hewings Author-X-Name-First: Geoffrey J. D. Author-X-Name-Last: Hewings Title: Bayesian estimation of labor demand by age: theoretical consistency and an application to an input–output model Abstract: Extended input–output models require careful estimation of disaggregated consumption by households and comparable sources of labor income by sector. The latter components most often have to be estimated. The primary focus of this paper is to produce labor demand disaggregated by workers’ age. The results are evaluated through considerations of its consistency with a static labor demand model restricted with theoretical requirements. A Bayesian approach is used for more straightforward imposition of regularity conditions. The Bayesian model confirms elastic labor demand for youth workers, which is consistent with what past studies find. Additionally, to explore the effects of changes in age structure on a regional economy, the estimated age-group-specific labor demand model is integrated into a regional input–output model. The integrated model suggests that ceteris paribus ageing population contributes to lowering aggregate economic multipliers due to the rapidly growing number of elderly workers who earn less than younger workers. Journal: Economic Systems Research Pages: 44-69 Issue: 1 Volume: 31 Year: 2019 Month: 1 X-DOI: 10.1080/09535314.2018.1427050 File-URL: http://hdl.handle.net/10.1080/09535314.2018.1427050 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:31:y:2019:i:1:p:44-69 Template-Type: ReDIF-Article 1.0 Author-Name: Paula Carvalho Pereda Author-X-Name-First: Paula Carvalho Author-X-Name-Last: Pereda Author-Name: Andrea Lucchesi Author-X-Name-First: Andrea Author-X-Name-Last: Lucchesi Author-Name: Carolina Policarpo Garcia Author-X-Name-First: Carolina Policarpo Author-X-Name-Last: Garcia Author-Name: Bruno Toni Palialol Author-X-Name-First: Bruno Toni Author-X-Name-Last: Palialol Title: Neutral carbon tax and environmental targets in Brazil Abstract: We evaluate the effects of a carbon tax in the Brazilian economy using an input–output framework. First, we consider the impacts of a carbon tax of US$ 10 and US$ 50/metric ton of CO2 equivalent. As usual, the adoption of the carbon tax generates adverse effects on GDP, wages and jobs in the short term, but reduces emissions and generates new government revenues, especially in the case of the greater tax. Second, we consider a broader tax system reform. In this reform, we replace distortionary taxes by a tax on value added. To compensate for the loss of government revenue, we assume a carbon tax with equivalent revenue. We find that the net effect is a GDP increase of 0.47%, the creation of 533 thousand jobs and reduction of 1.6 million tons of CO2 emissions. Both scenarios exempt exports and levy imports to correct adverse effects on the country’s competitiveness. Journal: Economic Systems Research Pages: 70-91 Issue: 1 Volume: 31 Year: 2019 Month: 1 X-DOI: 10.1080/09535314.2018.1431611 File-URL: http://hdl.handle.net/10.1080/09535314.2018.1431611 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:31:y:2019:i:1:p:70-91 Template-Type: ReDIF-Article 1.0 Author-Name: Francesca Severini Author-X-Name-First: Francesca Author-X-Name-Last: Severini Author-Name: Francesco Felici Author-X-Name-First: Francesco Author-X-Name-Last: Felici Author-Name: Noemi Ferracuti Author-X-Name-First: Noemi Author-X-Name-Last: Ferracuti Author-Name: Rosita Pretaroli Author-X-Name-First: Rosita Author-X-Name-Last: Pretaroli Author-Name: Claudio Socci Author-X-Name-First: Claudio Author-X-Name-Last: Socci Title: Gender policy and female employment: a CGE model for Italy Abstract: The gender integration in all areas of policy choices and at all stages of the decision-making process is strongly recommended by the European Union and represents an achievement that the Member States should accomplish when implementing policy measures. In a country like Italy, where the level of female labour participation is among the lowest in Europe, policy maker decisions should encourage and stimulate the demand for female labour without neglecting the global employment rate and income growth. The multisectoral analysis offers the possibility to bridge gender disaggregation within income formation and distribution from the production phase to the demand formation. In this perspective, this paper develops a gender-aware CGE model based on the gender-aware SAM for the Italian economy to evaluate the impact of different fiscal policies aimed to reduce female labour cost and trigger woman hiring in those sectors with high gender disparity. Journal: Economic Systems Research Pages: 92-113 Issue: 1 Volume: 31 Year: 2019 Month: 1 X-DOI: 10.1080/09535314.2018.1431612 File-URL: http://hdl.handle.net/10.1080/09535314.2018.1431612 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:31:y:2019:i:1:p:92-113 Template-Type: ReDIF-Article 1.0 Author-Name: Jason Hawkins Author-X-Name-First: Jason Author-X-Name-Last: Hawkins Author-Name: J. D. Hunt Author-X-Name-First: J. D. Author-X-Name-Last: Hunt Title: Development of environmentally extended social accounting matrices for policy analysis in Alberta Abstract: This paper outlines the development of inputs to an integrated land use and transportation model based on a series of environmentally extended social accounting matrices (SAMs) for the Canadian province of Alberta. A novel form of industry disaggregation is employed, based on aggregate iterative proportion and a unique formulation of location quotients. Social accounts are extended via the inclusion of detailed household consumption broken down by income quintiles. The SAMs are developed from supply-use matrices. Physical flow accounts are framed as derived demands, acting as necessary inputs to the production of downstream goods and services. Applications to regional economic modeling are considered, as planning authorities increasingly seek to model the environmental impacts of policy. The SAMs are then applied to the assessment of two technology change scenarios: a shift in the provincial electricity generation mix and a transition to a fully electric private automobile fleet. Journal: Economic Systems Research Pages: 114-131 Issue: 1 Volume: 31 Year: 2019 Month: 1 X-DOI: 10.1080/09535314.2018.1474854 File-URL: http://hdl.handle.net/10.1080/09535314.2018.1474854 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:31:y:2019:i:1:p:114-131 Template-Type: ReDIF-Article 1.0 Author-Name: Thijs ten Raa Author-X-Name-First: Thijs ten Author-X-Name-Last: Raa Title: The use–make framework and the derivation of functional forms in production theory Abstract: The use–make framework is employed to explain functional forms in production theory, including Cobb–Douglas and Leontief. Productivity and efficiency are interrelated by augmenting the framework with a linear program that determines the frontier output. Journal: Economic Systems Research Pages: 132-141 Issue: 1 Volume: 31 Year: 2019 Month: 1 X-DOI: 10.1080/09535314.2018.1431205 File-URL: http://hdl.handle.net/10.1080/09535314.2018.1431205 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:31:y:2019:i:1:p:132-141 Template-Type: ReDIF-Article 1.0 Author-Name: André Carrascal Incera Author-X-Name-First: André Author-X-Name-Last: Carrascal Incera Title: Drivers of change in the European youth employment: a comparative structural decomposition analysis Abstract: This paper uses a structural decomposition approach to examine the proximate causes of change in the EU15 youth workforce from 1995 to 2011. Besides the traditional sources considered by the literature, I include age-specific factors: a labor utilization index that accounts for the hours that employed youth work by showing the extent of part-time contracts; an age mix factor that indicates the share that youth comprise of total employment and, finally, changes in the inverse of the overall sectoral labor productivity, which describes variations in total labor demand. By applying this approach, I identify the core drivers behind the recent changes in the evolution of youth employment in each of the 15 countries; this is crucial for tailoring policy strategies. Results suggest that to foster youth employment, most Mediterranean countries should implement youth-specific measures while other EU15 countries could do so by enhancing overall employment. Journal: Economic Systems Research Pages: 463-485 Issue: 4 Volume: 29 Year: 2017 Month: 10 X-DOI: 10.1080/09535314.2017.1316708 File-URL: http://hdl.handle.net/10.1080/09535314.2017.1316708 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:29:y:2017:i:4:p:463-485 Template-Type: ReDIF-Article 1.0 Author-Name: Henry Aray Author-X-Name-First: Henry Author-X-Name-Last: Aray Author-Name: Luis Pedauga Author-X-Name-First: Luis Author-X-Name-Last: Pedauga Author-Name: Agustín Velázquez Author-X-Name-First: Agustín Author-X-Name-Last: Velázquez Title: Financial Social Accounting Matrix: a useful tool for understanding the macro-financial linkages of an economy Abstract: This article extends the traditional methodology of social accounting by building a Financial Social Accounting Matrix (FSAM) and a corresponding Satellite Asset–Liability Matrix for Spain. In so doing, the difficulties that typically arise in consolidating data from the National Bureau of Statistics (INE) and the Bank of Spain (BdE) were overcome. This is the first FSAM for the Spanish economy and might provide new tools to deepen the analysis of the financial sector and of the determinants of financial vulnerability associated with interactions with other sectors of the economy. As a novel contribution to the literature, this paper incorporated a structural path analysis grounded in the FSAM multiplier to identify the principal paths through which financial shocks are transmitted. Journal: Economic Systems Research Pages: 486-508 Issue: 4 Volume: 29 Year: 2017 Month: 10 X-DOI: 10.1080/09535314.2017.1365049 File-URL: http://hdl.handle.net/10.1080/09535314.2017.1365049 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:29:y:2017:i:4:p:486-508 Template-Type: ReDIF-Article 1.0 Author-Name: Euan Phimister Author-X-Name-First: Euan Author-X-Name-Last: Phimister Author-Name: Deborah Roberts Author-X-Name-First: Deborah Author-X-Name-Last: Roberts Title: Allowing for uncertainty in exogenous shocks to CGE models: the case of a new renewable energy sector Abstract: The paper explores the importance of allowing for uncertainty in the magnitude of exogenous shocks in Computable General Equilibrium (CGE) models. The shock examined is the introduction of a new onshore wind sector in North East Scotland. A simple analytical model is developed to show how, a priori, the size of the new sector (the model shock) is uncertain and asymmetrically distributed as a result of spatial correlation in costs and returns across potential development locations. The importance of allowing for this uncertainty is tested by comparing the results from a CGE model where the sector size is assumed known with certainty to those from a model where the sector size is a random variable with an asymmetric distribution. The results show the extent to which allowing for uncertainty can influence the magnitude of estimated impacts with some variables more sensitive to the uncertainty than others. Journal: Economic Systems Research Pages: 509-527 Issue: 4 Volume: 29 Year: 2017 Month: 10 X-DOI: 10.1080/09535314.2017.1309520 File-URL: http://hdl.handle.net/10.1080/09535314.2017.1309520 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:29:y:2017:i:4:p:509-527 Template-Type: ReDIF-Article 1.0 Author-Name: Gerardo Fujii-Gambero Author-X-Name-First: Gerardo Author-X-Name-Last: Fujii-Gambero Author-Name: Rosario Cervantes-Martínez Author-X-Name-First: Rosario Author-X-Name-Last: Cervantes-Martínez Title: The weak linkages between processing exports and the internal economy. The Mexican case Abstract: The aim of this paper is to show the internal linkages of manufacturing exports and the rest of the economy. We take the Mexican economy as the case of study. Manufacturing exports constitute the most of exports and processing exports (maquiladora) represent an important part of them. We consider the indirect domestic value added contained in Mexican manufacturing exports, dividing them into exports from the internal economy and the maquiladora industry. We show that the internal backward linkages of exports are weak, that only a few sectors produce inputs for exports, and that the forward linkages are weak too because the Mexican maquiladora industry assembles imported parts and components into final goods for export. The actual picture is quite different from that presented by Hirschman [(1958) The Strategy of Economic Development. New Haven, Yale University Press], who argued that the manufacturing sector plays a key role to promote economic growth because of its dense forward and backward internal linkages. Journal: Economic Systems Research Pages: 528-540 Issue: 4 Volume: 29 Year: 2017 Month: 10 X-DOI: 10.1080/09535314.2017.1351332 File-URL: http://hdl.handle.net/10.1080/09535314.2017.1351332 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:29:y:2017:i:4:p:528-540 Template-Type: ReDIF-Article 1.0 Author-Name: Faye Duchin Author-X-Name-First: Faye Author-X-Name-Last: Duchin Author-Name: Stephen H. Levine Author-X-Name-First: Stephen H. Author-X-Name-Last: Levine Title: Choosing among alternative technologies: conditions for assuring the feasibility of an input–output database or scenario Abstract: The conceptual reach of the basic input–output modeling framework is substantially extended by new models that incorporate the economic logic of comparative advantage as the basis for the endogenous choice among alternative production technologies. This paper establishes procedures that define the conditions under which the database used for scenario analysis in this extended framework assures the existence of an economically feasible solution. We provide a criterion for structural feasibility, the property established by the Hawkins–Simon condition for the basic input–output model, and introduce a criterion for scale feasibility. The logic underlying the tests is illustrated by numerical examples based on the Rectangular Choice-of-Technology model and database. These procedures can be particularly useful for incorporating engineering and other technical sources of information into multi-regional input–output databases; they can also provide substantial underlying detail about individual technologies, sectors, and factors of production for both feasible and infeasible scenarios. Journal: Economic Systems Research Pages: 541-556 Issue: 4 Volume: 29 Year: 2017 Month: 10 X-DOI: 10.1080/09535314.2017.1301396 File-URL: http://hdl.handle.net/10.1080/09535314.2017.1301396 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:29:y:2017:i:4:p:541-556 Template-Type: ReDIF-Article 1.0 Author-Name: Aurélien Poissonnier Author-X-Name-First: Aurélien Author-X-Name-Last: Poissonnier Title: A general weighted least squares approach for the projection of input–output tables Abstract: In the context of input–output analysis, it is often necessary to update a matrix for a date when only the sum of its columns and rows are known. This projection problem is quite similar to temporal disaggregation. I borrow from this literature a class of solutions for which the exact result can be implemented without iteration. These solutions minimize the adjustment made to the out-of-date matrix and as such can be said optimal according to a chosen criteria. The framework I expose is flexible enough to encompass many of the existing methods and develop new ones. I propose one of such methods to project a matrix between two given benchmarks. I exemplify the technique on 35 years of input–output tables for France and show in particular that the issue of negative cells can be avoided. Journal: Economic Systems Research Pages: 557-565 Issue: 4 Volume: 29 Year: 2017 Month: 10 X-DOI: 10.1080/09535314.2017.1304360 File-URL: http://hdl.handle.net/10.1080/09535314.2017.1304360 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:29:y:2017:i:4:p:557-565 Template-Type: ReDIF-Article 1.0 Author-Name: The Editors Title: Editorial Board Journal: Economic Systems Research Pages: ebi-ebi Issue: 4 Volume: 29 Year: 2017 Month: 10 X-DOI: 10.1080/09535314.2017.1384086 File-URL: http://hdl.handle.net/10.1080/09535314.2017.1384086 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:29:y:2017:i:4:p:ebi-ebi Template-Type: ReDIF-Article 1.0 Author-Name: Fabio Monsalve Author-X-Name-First: Fabio Author-X-Name-Last: Monsalve Author-Name: Jorge Zafrilla Author-X-Name-First: Jorge Author-X-Name-Last: Zafrilla Author-Name: María-Ángeles Cadarso Author-X-Name-First: María-Ángeles Author-X-Name-Last: Cadarso Author-Name: Angela García-Alaminos Author-X-Name-First: Angela Author-X-Name-Last: García-Alaminos Title: Is the emperor wearing new clothes? A social assessment of the European Union 2007–2013 financial framework Abstract: Over the years, European leaders have proudly waved a social flag as one of the European Union’s (EU) constituent and differentiating elements. This commitment is assessed here through the social footprint of the European 2007–2013 multiannual financial framework among the EU countries and, worldwide, using an extended multiregional input–output model. The focus is on the quantity and the quality of income and jobs generated. We find that well-known differences among its northern, southern and eastern regions threaten the EU’s intentions for high social standards, enabling first- and second-class winners. Core EU countries account for the most of the Funds and, thus, most of the positive economic and social impacts, mainly through spillovers from peripheral regions. Beyond the EU borders, Funds expenditures induce capital compensation boosts in emerging countries not balanced by a similar labor compensation impulse. Indeed, China captures the bulk of low-skilled and temporary employment. Journal: Economic Systems Research Pages: 285-304 Issue: 3 Volume: 31 Year: 2019 Month: 7 X-DOI: 10.1080/09535314.2018.1491391 File-URL: http://hdl.handle.net/10.1080/09535314.2018.1491391 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:31:y:2019:i:3:p:285-304 Template-Type: ReDIF-Article 1.0 Author-Name: Dan Wei Author-X-Name-First: Dan Author-X-Name-Last: Wei Author-Name: Zhenhua Chen Author-X-Name-First: Zhenhua Author-X-Name-Last: Chen Author-Name: Adam Rose Author-X-Name-First: Adam Author-X-Name-Last: Rose Title: Estimating economic impacts of the US-South Korea free trade agreement Abstract: We analyze the economic impacts of the United States-South Korea Free Trade Agreement by applying the Global Trade Analysis Project (GTAP) computable general equilibrium model to highly disaggregated commodity flow data. The analysis calculates the impacts in terms of welfare effects, national economic indicators (such as GDP), and business performance metrics (such as sales revenue), which can be used by a variety of decision-makers. Our results suggest several trade-offs among these measures. Positive welfare gains between the US and South Korea are about the same in absolute terms, but favor the latter in relative terms, and very heavily so for GDP gains. Moreover, the US is projected to incur a loss of gross output (sales revenue) in several major manufacturing sectors that are heavily concentrated in geographic areas that have been promised a return of jobs by the Trump Administration. Journal: Economic Systems Research Pages: 305-323 Issue: 3 Volume: 31 Year: 2019 Month: 7 X-DOI: 10.1080/09535314.2018.1506980 File-URL: http://hdl.handle.net/10.1080/09535314.2018.1506980 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:31:y:2019:i:3:p:305-323 Template-Type: ReDIF-Article 1.0 Author-Name: Henryk Gurgul Author-X-Name-First: Henryk Author-X-Name-Last: Gurgul Author-Name: Łukasz Lach Author-X-Name-First: Łukasz Author-X-Name-Last: Lach Title: Tracing VARDI coefficients: a proposal Abstract: We propose a new approach for tracing the so-called ‘value-added-(re)distribution-important coefficients’ (in short the VARDI coefficients) in a world input–output model. From the perspective of a selected group of economies, VARDI coefficients may be defined as those elements in world input–output matrix in the case of which a small change in their levels leads to the maximization of a share of this group of economies in value added in global value chains. Due to the rapid development of the World Input Output Database, this approach may be easily applied in empirical research to different groups of countries and sectors in world IO models. In an illustrative empirical case study, we use the new approach in order to answer a question regarding what the main directions of the future macroeconomic policy of the U.S. could be in order to ensure the maximization of the country’s share in global value added. Journal: Economic Systems Research Pages: 324-344 Issue: 3 Volume: 31 Year: 2019 Month: 7 X-DOI: 10.1080/09535314.2018.1516633 File-URL: http://hdl.handle.net/10.1080/09535314.2018.1516633 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:31:y:2019:i:3:p:324-344 Template-Type: ReDIF-Article 1.0 Author-Name: Dieter Schumacher Author-X-Name-First: Dieter Author-X-Name-Last: Schumacher Title: The integration of international financial markets: an attempt to quantify contagion in an input–output-type analysis Abstract: The increasing integration of international financial markets means that credit defaults in one country have to be covered by creditors in other countries. If the principle of creditor liability were applied systematically, the financial losses incurred by the financial institution that provided the credit and is thus directly affected by the default would be ‘passed on’ through its domestic and foreign shareholders and debt holders, as well as their creditors, to the original savers. In this paper, this contagion effect will be estimated by taking international capital linkages into account. Analogously to an input–output analysis of inter-industry linkages, savings used for investments in one country are traced back to the countries from which the funds originated. This also reveals the important role of international financial centers, which essentially serve as distributors of investment risks, while the financial losses are ultimately borne by larger countries with higher levels of savings. Journal: Economic Systems Research Pages: 345-360 Issue: 3 Volume: 31 Year: 2019 Month: 7 X-DOI: 10.1080/09535314.2018.1517084 File-URL: http://hdl.handle.net/10.1080/09535314.2018.1517084 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:31:y:2019:i:3:p:345-360 Template-Type: ReDIF-Article 1.0 Author-Name: Quanrun Chen Author-X-Name-First: Quanrun Author-X-Name-Last: Chen Author-Name: Kunfu Zhu Author-X-Name-First: Kunfu Author-X-Name-Last: Zhu Author-Name: Peng Liu Author-X-Name-First: Peng Author-X-Name-Last: Liu Author-Name: Xiangyin Chen Author-X-Name-First: Xiangyin Author-X-Name-Last: Chen Author-Name: Kailan Tian Author-X-Name-First: Kailan Author-X-Name-Last: Tian Author-Name: Lianling Yang Author-X-Name-First: Lianling Author-X-Name-Last: Yang Author-Name: Cuihong Yang Author-X-Name-First: Cuihong Author-X-Name-Last: Yang Title: Distinguishing China's processing trade in the world input-output table and quantifying its effects Abstract: Distinguishing processing trade is crucial to national input-output table-based research on China's international trade. This paper further investigates the importance of distinguishing China's processing trade in multicountry input-output table-based studies. We focus on the bias in China's bilateral trade in value added caused by China's undistinguished processing trade. We construct a product-by-product world input-output table capturing China's processing trade based on the World Input-Output Database. Empirical studies show that, if China's processing trade is undistinguished, the profile of China's bilateral trade in value added would be seriously distorted; China's bilateral net trade in value added with some economies, such as Japan, Korea and Taiwan, would be significantly underestimated, while it would be significantly overestimated for some other economies, such as the United States. Distinguishing processing trade in multicountry input-output tables is also crucial when China's bilateral trade in value added is considered. Journal: Economic Systems Research Pages: 361-381 Issue: 3 Volume: 31 Year: 2019 Month: 7 X-DOI: 10.1080/09535314.2018.1534225 File-URL: http://hdl.handle.net/10.1080/09535314.2018.1534225 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:31:y:2019:i:3:p:361-381 Template-Type: ReDIF-Article 1.0 Author-Name: Mattia Cai Author-X-Name-First: Mattia Author-X-Name-Last: Cai Author-Name: José Manuel Rueda-Cantuche Author-X-Name-First: José Manuel Author-X-Name-Last: Rueda-Cantuche Title: Bridging macroeconomic data between statistical classifications: the count-seed RAS approach Abstract: In applications, it is often necessary to link heavily aggregated macroeconomic datasets adhering to different statistical classifications. We propose a simple data reclassification procedure for those cases in which a bridge matrix grounded in microdata is not available. The essential requirement of our approach, which we refer to as count-seed RAS, is that there exists a time period or a geographical entity similar to the one of interest for which the relevant economic variable is observed according to both classifications. From this information, a bridge matrix is constructed using bi-proportional methods to rescale a seed matrix based on a qualitative correspondence table from official sources. We test the procedure in two case studies and by Monte Carlo methods. We find that, in terms of reclassification accuracy, it performs noticeably better than other expeditious methods. The analytical framework underlying our approach may prove a useful way of conceptualizing data reclassification problems. Journal: Economic Systems Research Pages: 382-403 Issue: 3 Volume: 31 Year: 2019 Month: 7 X-DOI: 10.1080/09535314.2018.1540404 File-URL: http://hdl.handle.net/10.1080/09535314.2018.1540404 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:31:y:2019:i:3:p:382-403 Template-Type: ReDIF-Article 1.0 Author-Name: Sébastien Mary Author-X-Name-First: Sébastien Author-X-Name-Last: Mary Author-Name: Euan Phimister Author-X-Name-First: Euan Author-X-Name-Last: Phimister Author-Name: Deborah Roberts Author-X-Name-First: Deborah Author-X-Name-Last: Roberts Author-Name: Fabien Santini Author-X-Name-First: Fabien Author-X-Name-Last: Santini Title: A Monte Carlo filtering application for systematic sensitivity analysis of computable general equilibrium results Abstract: Parameter uncertainty has fuelled criticisms on the robustness of results from computable general equilibrium models. This has led to the development of alternative sensitivity analysis approaches. Researchers have used Monte Carlo analysis for systematic sensitivity analysis because of its flexibility. But Monte Carlo analysis may yield biased simulation results. Gaussian quadratures have also been widely applied, although they can be difficult to apply in practice. This paper applies an alternative approach to systematic sensitivity analysis, Monte Carlo filtering and examines how its results compare to both Monte Carlo and Gaussian quadrature approaches. It does so via an application to rural development policies in Aberdeenshire, Scotland. We find that Monte Carlo filtering outperforms the conventional Monte Carlo approach and is a viable alternative when a Gaussian quadrature approach cannot be applied or is too complex to implement. Journal: Economic Systems Research Pages: 404-422 Issue: 3 Volume: 31 Year: 2019 Month: 7 X-DOI: 10.1080/09535314.2018.1543182 File-URL: http://hdl.handle.net/10.1080/09535314.2018.1543182 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:31:y:2019:i:3:p:404-422 Template-Type: ReDIF-Article 1.0 Author-Name: Juan M. Valderas-Jaramillo Author-X-Name-First: Juan M. Author-X-Name-Last: Valderas-Jaramillo Author-Name: José M. Rueda-Cantuche Author-X-Name-First: José M. Author-X-Name-Last: Rueda-Cantuche Author-Name: Elena Olmedo Author-X-Name-First: Elena Author-X-Name-Last: Olmedo Author-Name: Joerg Beutel Author-X-Name-First: Joerg Author-X-Name-Last: Beutel Title: Projecting supply and use tables: new variants and fair comparisons Abstract: We have introduced in this paper new variants of two methods for projecting Supply and Use Tables that are based on a distance minimisation approach (SUT-RAS) and the Leontief model (SUT-EURO). We have also compared them under similar and comparable exogenous information, i.e.: with and without exogenous industry output, and with explicit consideration of taxes less subsidies on products. We have conducted an empirical assessment of all of these methods against a set of annual tables between 2000 and 2005 for Austria, Belgium, Spain and Italy. From the empirical assessment, we obtained three main conclusions: (a) the use of extra information (i.e. industry output) generally improves projected estimates in both methods; (b) whenever industry output is available, the SUT-RAS method should be used and otherwise the SUT-EURO should be used instead; and (c) the total industry output is best estimated by the SUT-EURO method when this is not available. Journal: Economic Systems Research Pages: 423-444 Issue: 3 Volume: 31 Year: 2019 Month: 7 X-DOI: 10.1080/09535314.2018.1545221 File-URL: http://hdl.handle.net/10.1080/09535314.2018.1545221 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:31:y:2019:i:3:p:423-444 Template-Type: ReDIF-Article 1.0 Author-Name: Albert E. Steenge Author-X-Name-First: Albert E. Author-X-Name-Last: Steenge Author-Name: Maaike C. Bouwmeester Author-X-Name-First: Maaike C. Author-X-Name-Last: Bouwmeester Author-Name: André Carrascal Incera Author-X-Name-First: André Author-X-Name-Last: Carrascal Incera Title: Rents, resources, and multiple technologies; Ricardian mechanisms in input-output modelling Abstract: To allow for ‘multiple technologies’ to produce a homogeneous output in input–output models, Duchin and Levine [(2011) Sectors may use Multiple Technologies Simultaneously: The Rectangular Choice-of-technology Model with Binding Factor Constraints, Economic Systems Research, 23(3), 281–302] propose an optimization model constrained by primary resources. We show that the Duchin–Levine model contains two different mechanisms by which multiple technologies can arise. If a factor in short supply is shared by the original and the newly entering technology, the output of the original, lower-cost technology will be reduced to make room for the higher-cost technology which is less intensive in that factor. In contrast, if the factor in short supply is technology-specific, a higher-cost technology supplements the original lowest-cost one, which stays fully active. Either mechanism implies a mechanism-specific set of prices, quantities and rents. We relate these results to classical views on comparative advantage, fixed output levels and the origin of rents. Journal: Economic Systems Research Pages: 445-466 Issue: 3 Volume: 31 Year: 2019 Month: 7 X-DOI: 10.1080/09535314.2018.1558177 File-URL: http://hdl.handle.net/10.1080/09535314.2018.1558177 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:31:y:2019:i:3:p:445-466 Template-Type: ReDIF-Article 1.0 Author-Name: Chen Lin Author-X-Name-First: Chen Author-X-Name-Last: Lin Author-Name: Shinichiro Nakamura Author-X-Name-First: Shinichiro Author-X-Name-Last: Nakamura Title: Approaches to solving China’s marine plastic pollution and CO2 emission problems Abstract: Global contamination of the oceans by waste plastics is of increasing concern. Besides being the largest emitter of CO2 in the world, China is suspected of being the largest contributor to marine plastic waste pollution. Responsible for the latter is the still inadequate management of waste in China, a significant improvement of which is necessary for addressing the issue of marine plastic pollution. Since plastics are hydrocarbons, submitting them to appropriate waste treatment/recycling technologies could contribute to mitigating the emission of CO2, indicating the possibility of addressing the two environmental issues simultaneously. Based on the combined use of waste input–output and linear programming, we investigated options for mitigating CO2 emissions under consideration of alternative waste treatment/recycling processes applied to waste plastics of China. It was found that of the nine processes considered, four could result in a net reduction in the emission: a win-win situation. Journal: Economic Systems Research Pages: 143-157 Issue: 2 Volume: 31 Year: 2019 Month: 4 X-DOI: 10.1080/09535314.2018.1486808 File-URL: http://hdl.handle.net/10.1080/09535314.2018.1486808 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:31:y:2019:i:2:p:143-157 Template-Type: ReDIF-Article 1.0 Author-Name: Keiichiro Kanemoto Author-X-Name-First: Keiichiro Author-X-Name-Last: Kanemoto Author-Name: Tesshu Hanaka Author-X-Name-First: Tesshu Author-X-Name-Last: Hanaka Author-Name: Shigemi Kagawa Author-X-Name-First: Shigemi Author-X-Name-Last: Kagawa Author-Name: Keisuke Nansai Author-X-Name-First: Keisuke Author-X-Name-Last: Nansai Title: Industrial clusters with substantial carbon-reduction potential Abstract: To successfully reduce environmental emissions, companies need to expand the scope of their emissions accounting to include entire supply chains. A clustering approach has been used to find emission-intensive industry clusters. However, this approach did not include entire direct and indirect supply chains when forming high emission industry clusters. We propose a new method based on a modified normalized cut function with Leontief’s input–output model and basic clustering algorithms to find industry clusters with high levels of embodied within-cluster emissions that are well separated in the supply chain network. We use this method to identify 58 carbon-intensive clusters of Japanese industries and visualize the within-cluster supply chains in terms of embodied carbon flows. We recommend that companies collaborate within clusters to reduce environmental emissions. Our results provide new insights on where to target emissions reduction actions and technology development within industrial supply chains. Journal: Economic Systems Research Pages: 248-266 Issue: 2 Volume: 31 Year: 2019 Month: 4 X-DOI: 10.1080/09535314.2018.1492369 File-URL: http://hdl.handle.net/10.1080/09535314.2018.1492369 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:31:y:2019:i:2:p:248-266 Template-Type: ReDIF-Article 1.0 Author-Name: M. Cordier Author-X-Name-First: M. Author-X-Name-Last: Cordier Author-Name: T. Poitelon Author-X-Name-First: T. Author-X-Name-Last: Poitelon Author-Name: W. Hecq Author-X-Name-First: W. Author-X-Name-Last: Hecq Title: The shared environmental responsibility principle: new developments applied to the case of marine ecosystems Abstract: Estuaries provide advantageous sites for both harbors and fish habitats. In many countries, harbor expansion in estuaries contributed to the decline of fish populations with impacts at the global scale. Restoring these habitats is important to prevent a global biodiversity crisis but is costly and potentially unaffordable for polluters under the Polluter Pays Principle. Such affordability issues prompt decision-makers to reduce environmental targets of restoration programs. Harbor infrastructures destroy fish habitats but generate benefits for society and contribute to the public interest, raising some questions on who is responsible for environmental degradations and who can afford environmental restoration costs? One way to allocate restoration costs is to analyze the amount of harbor services consumed by economic sectors. This paper addresses these questions by computing burden sharing scenarios with an input–output matrix. These scenarios are simulated under the shared responsibility principle to distribute restoration costs among stakeholders in the Seine estuary, France. Journal: Economic Systems Research Pages: 228-247 Issue: 2 Volume: 31 Year: 2019 Month: 4 X-DOI: 10.1080/09535314.2018.1520691 File-URL: http://hdl.handle.net/10.1080/09535314.2018.1520691 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:31:y:2019:i:2:p:228-247 Template-Type: ReDIF-Article 1.0 Author-Name: Zeus Guevara Author-X-Name-First: Zeus Author-X-Name-Last: Guevara Author-Name: Edmundo Molina-Pérez Author-X-Name-First: Edmundo Author-X-Name-Last: Molina-Pérez Author-Name: Edith X. M. García Author-X-Name-First: Edith X. M. Author-X-Name-Last: García Author-Name: Vanessa Pérez-Cirera Author-X-Name-First: Vanessa Author-X-Name-Last: Pérez-Cirera Title: Energy and CO2 emission relationships in the NAFTA trading bloc: a multi-regional multi-factor energy input–output approach Abstract: The North-America Free Trade Agreement (NAFTA) has brought together the economies of Canada, Mexico, and the US into forming one of the largest trading blocs worldwide (within the top CO2 emitters). However, the current global protectionist discourse threatens the agreement. This paper analyzes the energy and energy-related CO2 emission relationships between NAFTA countries in 2014 to gain insights into the climate change implications of current integration and the possible cancelation of the agreement. The analysis is performed with a multi-regional version of the multi-factor energy input–output model. The results show that NAFTA has not built a single integrated energy system, though it has helped reduce energy-related CO2 emissions. Moreover, if NAFTA is not revoked, further integration would depend on the capacity of the Mexican energy sector to converge to the performance of its trade partners’ energy sectors. Conversely, a broken deal would induce negative environmental externalities. Journal: Economic Systems Research Pages: 178-205 Issue: 2 Volume: 31 Year: 2019 Month: 4 X-DOI: 10.1080/09535314.2018.1528212 File-URL: http://hdl.handle.net/10.1080/09535314.2018.1528212 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:31:y:2019:i:2:p:178-205 Template-Type: ReDIF-Article 1.0 Author-Name: Pablo Piñero Author-X-Name-First: Pablo Author-X-Name-Last: Piñero Author-Name: Martin Bruckner Author-X-Name-First: Martin Author-X-Name-Last: Bruckner Author-Name: Hanspeter Wieland Author-X-Name-First: Hanspeter Author-X-Name-Last: Wieland Author-Name: Eva Pongrácz Author-X-Name-First: Eva Author-X-Name-Last: Pongrácz Author-Name: Stefan Giljum Author-X-Name-First: Stefan Author-X-Name-Last: Giljum Title: The raw material basis of global value chains: allocating environmental responsibility based on value generation Abstract: A new approach to allocate environmental responsibility, the ‘value added-based responsibility’ allocation, is presented in this article. This metric allocates total environmental pressures occurring along an international supply chain to the participating sectors and countries according to the share of value added they generate within that specific supply chain. We show that – due to their position in global value chains – certain sectors (e.g. services) and countries (e.g. Germany) receive significantly greater responsibility compared to other allocation approaches. This adds a new perspective to the discussions concerning a fair distribution of mitigation costs among nations, companies and consumers. Journal: Economic Systems Research Pages: 206-227 Issue: 2 Volume: 31 Year: 2019 Month: 4 X-DOI: 10.1080/09535314.2018.1536038 File-URL: http://hdl.handle.net/10.1080/09535314.2018.1536038 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:31:y:2019:i:2:p:206-227 Template-Type: ReDIF-Article 1.0 Author-Name: George Philippidis Author-X-Name-First: George Author-X-Name-Last: Philippidis Author-Name: Heleen Bartelings Author-X-Name-First: Heleen Author-X-Name-Last: Bartelings Author-Name: John Helming Author-X-Name-First: John Author-X-Name-Last: Helming Author-Name: Robert M’barek Author-X-Name-First: Robert Author-X-Name-Last: M’barek Author-Name: Edward Smeets Author-X-Name-First: Edward Author-X-Name-Last: Smeets Author-Name: Hans van Meijl Author-X-Name-First: Hans Author-X-Name-Last: van Meijl Title: Levelling the playing field for EU biomass usage Abstract: The threats of climate change, food security, resource depletion and energy security are driving society towards a sustainable low-carbon future. Within this paradigm, biomass plays an invaluable role in meeting the food, feed, energy and material needs of future generations. Current EU thinking advocates biomass for high-value materials, which is not aligned with EU public policy support for ‘lower value’ bioenergy applications. ‘High-technology’ and ‘no bioenergy mandate’ pathways explore market conditions that generate a more equitable distribution between competing biomass conversion technologies and competing biomass and fossil technologies. In achieving greater equity, these pathways ease biomass market tensions; enhance EU food security; improve EU biobased trade balances; accelerate biomaterial sectors’ output performance and favour macroeconomic growth. Moreover, an additional 80% increase in the oil price signals a tipping point in favour of first generation biofuels, whilst simultaneously boosting output in advanced material conversion technologies even more than the high-technology pathway. Journal: Economic Systems Research Pages: 158-177 Issue: 2 Volume: 31 Year: 2019 Month: 4 X-DOI: 10.1080/09535314.2018.1564020 File-URL: http://hdl.handle.net/10.1080/09535314.2018.1564020 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:31:y:2019:i:2:p:158-177 Template-Type: ReDIF-Article 1.0 Author-Name: Jaume Freire-González Author-X-Name-First: Jaume Author-X-Name-Last: Freire-González Author-Name: Mun S. Ho Author-X-Name-First: Mun S. Author-X-Name-Last: Ho Title: Carbon taxes and the double dividend hypothesis in a recursive-dynamic CGE model for Spain Abstract: A carbon tax is potentially a policy that can reduce CO2 emissions and mitigate climate risks, at lowest economy-wide costs. We develop a dynamic CGE model for Spain to assess the economic and environmental effects of a carbon tax, and test the double dividend (DD) hypothesis. We simulate the impact of three carbon taxes: €10, €20 and €30 per ton of CO2. For each tax, four ‘revenue recycling’ scenarios are examined: a reduction of taxes on capital, on labor, on value-added tax, and a scenario in which revenues are not recycled. We find a DD for taxes of €10/ton and lower, within five to seven years of implementation. We estimate an annual CO2 emissions reduction of around 10% with this tax. Under some circumstances, the DD can be achieved for a tax of €20/ton. In any case, recycling revenues to cut pre-existing taxes reduces costs of imposing carbon taxes. Journal: Economic Systems Research Pages: 267-284 Issue: 2 Volume: 31 Year: 2019 Month: 4 X-DOI: 10.1080/09535314.2019.1568969 File-URL: http://hdl.handle.net/10.1080/09535314.2019.1568969 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:31:y:2019:i:2:p:267-284 Template-Type: ReDIF-Article 1.0 Author-Name: Elco E. Koks Author-X-Name-First: Elco E. Author-X-Name-Last: Koks Author-Name: Mark Thissen Author-X-Name-First: Mark Author-X-Name-Last: Thissen Title: A Multiregional Impact Assessment Model for disaster analysis Abstract: This paper presents a recursive dynamic multiregional supply-use model, combining linear programming and input–output (I–O) modeling to assess the economy-wide consequences of a natural disaster on a pan-European scale. It is a supply-use model which considers production technologies and allows for supply side constraints. The model has been illustrated for three floods in Rotterdam, The Netherlands. Results show that most of the neighboring regions gain from the flood due to increased demand for reconstruction and production capacity constraints in the affected region. Regions located further away or neighboring regions without a direct export link to the affected region mostly suffered small losses. These losses are due to the costs of increased inefficiencies in the production process that have to be paid for by all (indirectly) consuming regions. In the end, the floods cause regionally differentiated welfare effects. Journal: Economic Systems Research Pages: 429-449 Issue: 4 Volume: 28 Year: 2016 Month: 10 X-DOI: 10.1080/09535314.2016.1232701 File-URL: http://hdl.handle.net/10.1080/09535314.2016.1232701 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:28:y:2016:i:4:p:429-449 Template-Type: ReDIF-Article 1.0 Author-Name: Matthias Brachert Author-X-Name-First: Matthias Author-X-Name-Last: Brachert Author-Name: Hans-Ulrich Brautzsch Author-X-Name-First: Hans-Ulrich Author-X-Name-Last: Brautzsch Author-Name: Mirko Titze Author-X-Name-First: Mirko Author-X-Name-Last: Titze Title: Mapping potentials for input–output-based innovation flows in industrial clusters – an application to Germany Abstract: Our paper pursues two aims: first, it presents an approach based on input–output innovation flow matrices to study intersectoral innovation flows within industrial clusters. Second, we apply this approach to the identification of structural weaknesses in East Germany relative to the western part of the country. The case of East Germany forms an interesting subject because while its convergence process after unification began promisingly in the first half of the 1990s, convergence has since slowed down. The existing gap can now be traced mainly to structural weaknesses in the East German economy, such as the absence of strong industrial cluster structures. With this in mind, we investigate whether East Germany does in fact reveal the abovementioned structural weaknesses. Does East Germany possess fewer industrial clusters? Are they less connected? Does East Germany lack specific clusters that are also important for the non-clustered part of the economy? Journal: Economic Systems Research Pages: 450-466 Issue: 4 Volume: 28 Year: 2016 Month: 10 X-DOI: 10.1080/09535314.2016.1244517 File-URL: http://hdl.handle.net/10.1080/09535314.2016.1244517 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:28:y:2016:i:4:p:450-466 Template-Type: ReDIF-Article 1.0 Author-Name: Chanyoung Hong Author-X-Name-First: Chanyoung Author-X-Name-Last: Hong Author-Name: Jeong-Dong Lee Author-X-Name-First: Jeong-Dong Author-X-Name-Last: Lee Title: Macroeconomic effects of R&D tax credits on small and medium enterprises Abstract: Research and development (R&D) is regarded as a core factor for the long-run performance of both large enterprises (LEs) and small and medium-sized enterprises (SMEs). This paper analyzes the economic effects of R&D tax credits by firm size. It mainly aims to compare the results of tax policies oriented towards LEs to those towards SMEs. In order to estimate the impact numerically, we use a computable general equilibrium model, which incorporates some essential characteristics of knowledge. First, we introduce a social accounting matrix that differentiates between SMEs and LEs in manufacturing industries. Then, a knowledge-based macroeconomic model estimates outcomes for policy scenarios regarding tax incentives. The results show that SMEs support more rapid growth than do LEs when the same volume of tax credits is offered to both enterprise types. We suggest that the intensity of knowledge spillovers induced by SMEs is driving this result. Journal: Economic Systems Research Pages: 467-481 Issue: 4 Volume: 28 Year: 2016 Month: 10 X-DOI: 10.1080/09535314.2016.1240067 File-URL: http://hdl.handle.net/10.1080/09535314.2016.1240067 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:28:y:2016:i:4:p:467-481 Template-Type: ReDIF-Article 1.0 Author-Name: Kênia Barreiro de Souza Author-X-Name-First: Kênia Barreiro Author-X-Name-Last: de Souza Author-Name: Luiz Carlos de Santana Ribeiro Author-X-Name-First: Luiz Carlos de Santana Author-X-Name-Last: Ribeiro Author-Name: Fernando Salgueiro Perobelli Author-X-Name-First: Fernando Salgueiro Author-X-Name-Last: Perobelli Title: Reducing Brazilian greenhouse gas emissions: scenario simulations of targets and policies Abstract: This paper aims to evaluate the economic impacts of greenhouse gas emission reduction on the Brazilian economy. To this end, we developed an integrated input–output linear programming model for 2009 using the Supply and Use Tables and emissions data of the Brazilian Ministry of Science and Technology and Innovation. We simulated emissions targets for various potential scenarios in which the adopted policy design took account of sectoral composition in terms of emissions and available production technology. The results were directly affected by the high level of livestock emissions, counterbalancing this sector’s economic importance for Brazil. In the short term, sectoral emissions targets associated with taxation policy or emission permits could be developed in order to create private incentives to mitigate emissions. In this sense, the results also show that different sectoral targets may be able to balance environmental benefits with the possible economic losses incurred by such policies. Journal: Economic Systems Research Pages: 482-496 Issue: 4 Volume: 28 Year: 2016 Month: 10 X-DOI: 10.1080/09535314.2016.1230093 File-URL: http://hdl.handle.net/10.1080/09535314.2016.1230093 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:28:y:2016:i:4:p:482-496 Template-Type: ReDIF-Article 1.0 Author-Name: Anke Mönnig Author-X-Name-First: Anke Author-X-Name-Last: Mönnig Title: The European Monetary Union break-up: an economic experiment on the return of the deutsche mark Abstract: By using the macro-econometric input–output model INFORGE, this paper investigates the economic effects of a unilateral break-up of Germany from the European Monetary Union (EMU). The results show that a return to a national currency lowers Germany's growth path. Positive effects of a break-up due to lower domestic prices, increasing real wages and lower imports are fully compensated by the loss in international competitiveness. On industrial level, the negative implications are the strongest in those industries that depend strongly on exports. Strong indirect implications are expected for the business-related service sector. Although the results of this economic experiment depend strongly on its underlying assumptions, it can be shown that a break-up of the EMU would result in a heavy welfare loss for Germany. Journal: Economic Systems Research Pages: 497-517 Issue: 4 Volume: 28 Year: 2016 Month: 10 X-DOI: 10.1080/09535314.2016.1242478 File-URL: http://hdl.handle.net/10.1080/09535314.2016.1242478 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:28:y:2016:i:4:p:497-517 Template-Type: ReDIF-Article 1.0 Author-Name: João Rodrigues Author-X-Name-First: João Author-X-Name-Last: Rodrigues Author-Name: Alexandra Marques Author-X-Name-First: Alexandra Author-X-Name-Last: Marques Author-Name: Richard Wood Author-X-Name-First: Richard Author-X-Name-Last: Wood Author-Name: Arnold Tukker Author-X-Name-First: Arnold Author-X-Name-Last: Tukker Title: A network approach for assembling and linking input–output models Abstract: Input–output (IO) models, describing trade between different sectors and regions, are widely used to study the environmental repercussions of human activities. A frequent challenge in assembling an IO model or linking several such models is the absence of flow data with the same level of detail for all components. Such problems can be addressed using proportional allocation, which is a form of algebraic transformations. In this paper, we propose a novel approach whereby the IO system is viewed as a network, the topology of which is transformed with the addition of virtual nodes so that available empirical flow data can be mapped directly to existing links, with no additional estimation required, and no impact on results. As IO systems become increasingly disaggregated, and coupled to adjacent databases and models, the adaptability of IO frameworks becomes increasingly important. We show that topological transformations also offer large advantages in terms of transparency, modularity and increasingly importantly for global IO models, efficiency. We illustrate the results in the context of trade linking, multi-scale integration and other applications. Journal: Economic Systems Research Pages: 518-538 Issue: 4 Volume: 28 Year: 2016 Month: 10 X-DOI: 10.1080/09535314.2016.1238817 File-URL: http://hdl.handle.net/10.1080/09535314.2016.1238817 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:28:y:2016:i:4:p:518-538 Template-Type: ReDIF-Article 1.0 Author-Name: The Editors Title: Editorial Board Journal: Economic Systems Research Pages: ebi-ebi Issue: 4 Volume: 28 Year: 2016 Month: 10 X-DOI: 10.1080/09535314.2016.1251107 File-URL: http://hdl.handle.net/10.1080/09535314.2016.1251107 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:28:y:2016:i:4:p:ebi-ebi Template-Type: ReDIF-Article 1.0 Author-Name: Paul de Boer Author-X-Name-First: Paul Author-X-Name-Last: de Boer Author-Name: João F. D. Rodrigues Author-X-Name-First: João F. D. Author-X-Name-Last: Rodrigues Title: Decomposition analysis: when to use which method? Abstract: Structural and index decomposition analyses allow identifying the main drivers of observed changes over time of energy and environmental impacts. These decomposition analyses have become very popular in recent decades and, many alternative methods to implement them have become available. Several of the most popular methods have been developed earlier in index number theory, a context in which each particular method is defined by adhering to a set of properties. The goal of the present paper is to review the main results of index number theory and discuss its connection to decomposition analyses. By doing so, we can present a decision tree that allows users to choose a decomposition method that meets desired properties. We report as hands-on example an empirical case study of the carbon footprint of the Netherlands in the period 2004–2005. Journal: Economic Systems Research Pages: 1-28 Issue: 1 Volume: 32 Year: 2020 Month: 1 X-DOI: 10.1080/09535314.2019.1652571 File-URL: http://hdl.handle.net/10.1080/09535314.2019.1652571 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:32:y:2020:i:1:p:1-28 Template-Type: ReDIF-Article 1.0 Author-Name: Mark Sommer Author-X-Name-First: Mark Author-X-Name-Last: Sommer Author-Name: Kurt Kratena Author-X-Name-First: Kurt Author-X-Name-Last: Kratena Title: Consumption and production-based CO2 pricing policies: macroeconomic trade-offs and carbon leakage Abstract: This paper applies a DYNK (Dynamic New Keynesian) model to compare the traditional environmental tax reform for greenhouse gas (GHG) emissions with a taxation scheme that taxes GHG emissions embodied in consumption within the framework of a unilateral policy of the EU-27. The embodied emissions of different commodities are taxed independently of their origin. The GHG tax rates applied are identical and new revenues are in both cases recycled via lower social security contributions of employers. The results show the macroeconomic results, driven by the different impact of the taxation schemes on price competitiveness of EU-27 firms. These differences drive the leakage and show negative leakage in the case of taxing embodied GHG emissions. Both taxation schemes are also regressive for household incomes emphasizing the importance of the choice of revenue recycling. In terms of emission reduction, we find the taxation of emissions embodied in consumption less effective. Journal: Economic Systems Research Pages: 29-57 Issue: 1 Volume: 32 Year: 2020 Month: 1 X-DOI: 10.1080/09535314.2019.1612736 File-URL: http://hdl.handle.net/10.1080/09535314.2019.1612736 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:32:y:2020:i:1:p:29-57 Template-Type: ReDIF-Article 1.0 Author-Name: Futu Faturay Author-X-Name-First: Futu Author-X-Name-Last: Faturay Author-Name: Ya-Yen Sun Author-X-Name-First: Ya-Yen Author-X-Name-Last: Sun Author-Name: Erik Dietzenbacher Author-X-Name-First: Erik Author-X-Name-Last: Dietzenbacher Author-Name: Arunima Malik Author-X-Name-First: Arunima Author-X-Name-Last: Malik Author-Name: Arne Geschke Author-X-Name-First: Arne Author-X-Name-Last: Geschke Author-Name: Manfred Lenzen Author-X-Name-First: Manfred Author-X-Name-Last: Lenzen Title: Using virtual laboratories for disaster analysis – a case study of Taiwan Abstract: Due to its geographic location, Taiwan frequently experiences severe natural disasters (for example earthquakes and typhoons) that significantly interrupt business operations and subsequently cause extensive financial losses. Prior work on economic losses resulting from such natural disasters in Taiwan has not considered regional and sectoral spillover effects. In this work, we estimate the economic impacts resulting from the 1999 Chichi earthquake, the 2009 typhoon Morakot, the 2016 Tainan earthquake, and the 2016 typhoon Megi. We do so in the new TaiwanLab, a collaborative virtual laboratory that is capable of generating a time-series of subnational multiregional input–output (MRIO) tables, capturing interregional transactions among 267 sectors across Taiwan’s 22 city-counties. We identify critical economic sectors in regions of high vulnerability to natural disasters. Our research is, thus, a credible reference to decision-making that determines regional and sectoral prioritisation for damage mitigation, improved resiliency, and faster recovery schedules. Journal: Economic Systems Research Pages: 58-83 Issue: 1 Volume: 32 Year: 2020 Month: 1 X-DOI: 10.1080/09535314.2019.1617677 File-URL: http://hdl.handle.net/10.1080/09535314.2019.1617677 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:32:y:2020:i:1:p:58-83 Template-Type: ReDIF-Article 1.0 Author-Name: Philip Ulrich Author-X-Name-First: Philip Author-X-Name-Last: Ulrich Author-Name: Ulrike Lehr Author-X-Name-First: Ulrike Author-X-Name-Last: Lehr Title: Economic effects of an E-mobility scenario – input structure and energy consumption Abstract: The development of a strong domestic market for E-mobility is given a high priority and it is counted as an impulse for the transformation towards a Green Economy in Germany. Replacing the combustion engine by alternative drives can trigger a variety of macroeconomic effects. The paper presents the results of a model-based analysis. In particular, effects on the value chain of the automotive industry and the demand for consumer goods are explicitly modelled. An E-mobility scenario that meets the six million E-vehicles by a 2030 target is compared with a reference scenario. Assuming a substitution of inputs within the automotive industry by inputs from the electrical engineering sector, negative effects in vehicle production are offset by positive effects in energy technology production. For the macroeconomic effects, the development of imports and exports is crucial. In the scenario comparison presented here, short- to medium-term employment effects are slightly positive. Journal: Economic Systems Research Pages: 84-97 Issue: 1 Volume: 32 Year: 2020 Month: 1 X-DOI: 10.1080/09535314.2019.1619522 File-URL: http://hdl.handle.net/10.1080/09535314.2019.1619522 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:32:y:2020:i:1:p:84-97 Template-Type: ReDIF-Article 1.0 Author-Name: Marwil J. Dávila-Fernández Author-X-Name-First: Marwil J. Author-X-Name-Last: Dávila-Fernández Author-Name: Lionello F. Punzo Author-X-Name-First: Lionello F. Author-X-Name-Last: Punzo Title: Financialisation as structural change: measuring the financial content of things Abstract: In this article, we present a multi-sectoral treatment of financialisation based on input–output analysis. Our main innovation introduces financialisation as an increase in financial content per unit of output produced. In this way, we may investigate changes in relative importance of financial activities, taking into account direct and indirect interactions among sectors. Although methods focusing on the disaggregation of input–output tables have been largely explored in past decades, they have received limited attention in the literature on financialisation. We aim to refocus on multi-sectoral issues by offering a simple structure of analysis to assess the interconnections between the real and financial sides of the economy. Using a 15 and 14-sector level of aggregation, we study the experiences of the United States and Brazil for the period 1947–2015 and 1995–2011, respectively. Journal: Economic Systems Research Pages: 98-120 Issue: 1 Volume: 32 Year: 2020 Month: 1 X-DOI: 10.1080/09535314.2019.1643294 File-URL: http://hdl.handle.net/10.1080/09535314.2019.1643294 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:32:y:2020:i:1:p:98-120 Template-Type: ReDIF-Article 1.0 Author-Name: An Vercalsteren Author-X-Name-First: An Author-X-Name-Last: Vercalsteren Author-Name: Maarten Christis Author-X-Name-First: Maarten Author-X-Name-Last: Christis Author-Name: Theo Geerken Author-X-Name-First: Theo Author-X-Name-Last: Geerken Author-Name: Ann Van der Linden Author-X-Name-First: Ann Author-X-Name-Last: Van der Linden Title: Policy needs (to be) covered by static environmentally extended input–output analyses Abstract: There exists little evidence in the literature of the extent to which static environmentally extended multiregion input–output (EE-MRIO) studies actually contribute to political decision-making and policy formulation. This paper provides an overview of the reported applications of EE-MRIO analysis in an environmental context, either initiated by questions from policy makers or demonstrated by researchers. The applications are structured according to their scope and scale, the coverage of the DPSIR environmental policy framework (driving forces/pressures/state/impact/response), and the type of application (problem analysis/agenda setting, ex ante and ex post/monitoring). Results from interviews with policy makers (Belgium) show both their interest in IO-modelling and specific needs they have to make it more useful in their own context. The more experimental EE-IO models serve well for the early policy phase of problem analysis and agenda setting. Also, their use can prove the importance of strengthening international collaboration to develop internationally recognized EE-IO models. Journal: Economic Systems Research Pages: 121-144 Issue: 1 Volume: 32 Year: 2020 Month: 1 X-DOI: 10.1080/09535314.2019.1644994 File-URL: http://hdl.handle.net/10.1080/09535314.2019.1644994 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:32:y:2020:i:1:p:121-144 Template-Type: ReDIF-Article 1.0 Author-Name: José M. Rueda-Cantuche Author-X-Name-First: José M. Author-X-Name-Last: Rueda-Cantuche Author-Name: Antonio F. Amores Author-X-Name-First: Antonio F. Author-X-Name-Last: Amores Author-Name: Isabelle Remond-Tiedrez Author-X-Name-First: Isabelle Author-X-Name-Last: Remond-Tiedrez Title: Can supply, use and input–output tables be converted to a different classification with aggregate information? Abstract: Every change in the product and/or industry classifications and/or methodology of supply, use and input–output tables makes any medium- to long-term policy analysis impossible unless appropriate conversions are provided by national statistical institutes using more detailed data. However, can these tables be reasonably converted to a different classification of industries and products using aggregate information? We develop a conversion method that allows changes in classification that are independent of the number of industries and products. In addition, we provide evidence about its empirical performance compared with projection methods. We find projection methods perform better than conversion methods, at least when using aggregate information. Nonetheless, unlike conversion methods, projection methods generally require supply, use and input–output tables in the new classification that might not always be available. In their absence, we recommend using more detailed and sophisticated data. Journal: Economic Systems Research Pages: 145-165 Issue: 1 Volume: 32 Year: 2020 Month: 1 X-DOI: 10.1080/09535314.2019.1655393 File-URL: http://hdl.handle.net/10.1080/09535314.2019.1655393 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:32:y:2020:i:1:p:145-165 Template-Type: ReDIF-Article 1.0 Author-Name: Antonio Manresa Author-X-Name-First: Antonio Author-X-Name-Last: Manresa Author-Name: Ferran Sancho Author-X-Name-First: Ferran Author-X-Name-Last: Sancho Title: A follow-up note on the plausibility of the Leontief and Ghosh closed models Abstract: Herein we consider Leontief and Ghosh models that partly endogenize both part of final demand and part of value-added. We use Osterhaven's [(2012) Adding Supply-driven Consumption Makes the Ghosh Model Even More Implausible. Economic Systems Research, 24, 101–111] numerical three-sector example to show that anomalies of the sort he finds for a Ghosh closed model can also be found in the closed version of a Leontief model. By assuming, as Oosterhaven did, that aggregate exogenous resources are fixed, we obtain mirror results to his in a Ghosh setting, albeit in the more-traditional Leontief instance. Such numerical anomalies for the three-sector case turn out to be generic to both partially closed models for any 2×2 input–output model. A proof for the general n×n case remains to be uncovered. Journal: Economic Systems Research Pages: 166-172 Issue: 1 Volume: 32 Year: 2020 Month: 1 X-DOI: 10.1080/09535314.2019.1650331 File-URL: http://hdl.handle.net/10.1080/09535314.2019.1650331 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:32:y:2020:i:1:p:166-172 Template-Type: ReDIF-Article 1.0 Author-Name: Koji Ito Author-X-Name-First: Koji Author-X-Name-Last: Ito Author-Name: Ivan Deseatnicov Author-X-Name-First: Ivan Author-X-Name-Last: Deseatnicov Author-Name: Kyoji Fukao Author-X-Name-First: Kyoji Author-X-Name-Last: Fukao Title: Japan’s participation in global value chains: splitting the IO table into production for export and domestic sale Abstract: This paper examines Japan’s participation in global value chains (GVCs). To this end, we use plant-level data for Japan to split output in each industry in Japan’s manufacturing sector into output for export or domestic sale and create an extended multi-country input–output table (MIOT). We then compute trade in value added (TiVA) indicators to examine the participation of Japanese manufacturing plants in GVCs. Our estimates suggest that Japan’s forward participation in GVCs is lower than suggested by estimates computed from a traditional MIOT. We infer that this result is due to high cross-border production fragmentation as well as the large presence of Japanese multinational companies in global manufacturing and the high volume of intra-firm trade in Japan’s manufacturing sector. We conclude that considering firm heterogeneity in production for export and domestic sale in MIOTs provides a more accurate understanding of global production fragmentation. Journal: Economic Systems Research Pages: 173-191 Issue: 2 Volume: 32 Year: 2020 Month: 4 X-DOI: 10.1080/09535314.2019.1657802 File-URL: http://hdl.handle.net/10.1080/09535314.2019.1657802 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:32:y:2020:i:2:p:173-191 Template-Type: ReDIF-Article 1.0 Author-Name: João F. D. Rodrigues Author-X-Name-First: João F. D. Author-X-Name-Last: Rodrigues Author-Name: Rong Yuan Author-X-Name-First: Rong Author-X-Name-Last: Yuan Author-Name: Hai Xiang Lin Author-X-Name-First: Hai Xiang Author-X-Name-Last: Lin Title: The expectations of and covariances between carbon footprints Abstract: Carbon footprints and other environmentally extended input–output indicators are obtained as aggregations of emissions embodied in supply chains (EESCs), which express the emissions occurring in a specific production activity to satisfy a given volume of final demand. Here we derive theoretical approximations of the expectations of and covariances between EESCs, as a function of the expectations of and covariances between source data (technical coefficients, emission coefficients and final demand volumes) through a Taylor expansion. We report an empirical test of those approximations, using a sample of 5 global multi-regional input–output models in the year 2007, of which we extract 22 single-region input–output systems with 17 sectors. We find that approximations of multipliers perform better than those of EESC, and approximations of expectations perform better than those of covariances. Journal: Economic Systems Research Pages: 192-201 Issue: 2 Volume: 32 Year: 2020 Month: 4 X-DOI: 10.1080/09535314.2019.1659757 File-URL: http://hdl.handle.net/10.1080/09535314.2019.1659757 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:32:y:2020:i:2:p:192-201 Template-Type: ReDIF-Article 1.0 Author-Name: Yann Füllemann Author-X-Name-First: Yann Author-X-Name-Last: Füllemann Author-Name: Vincent Moreau Author-X-Name-First: Vincent Author-X-Name-Last: Moreau Author-Name: Marc Vielle Author-X-Name-First: Marc Author-X-Name-Last: Vielle Author-Name: François Vuille Author-X-Name-First: François Author-X-Name-Last: Vuille Title: Hire fast, fire slow: the employment benefits of energy transitions Abstract: The transition towards decarbonized and efficient energy systems has broad socio-economic implications. We estimate the potential impacts on employment from efforts in energy efficiency in industry, transport and buildings as well as substituting local renewable energy sources for fossil fuels. Both energy supply and demand are accounted for. We use a hybrid approach that combines national energy transition scenarios with input–output tables, adjusted for new energy and non-energy activities. We conclude that the transition has a net positive impact on employment as illustrated by the case of Switzerland. The local and decentralized nature of energy efficiency and renewables retains a greater share of value-added domestically than does a supply chain of fossil fuels. Moreover, we find that more jobs are created in demand-side activities, such as building renovation, than in renewable energy generation. Positive impacts on jobs from spillover effects in all non-energy activities are also found. Journal: Economic Systems Research Pages: 202-220 Issue: 2 Volume: 32 Year: 2020 Month: 4 X-DOI: 10.1080/09535314.2019.1695584 File-URL: http://hdl.handle.net/10.1080/09535314.2019.1695584 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:32:y:2020:i:2:p:202-220 Template-Type: ReDIF-Article 1.0 Author-Name: Irfan Ahmed Author-X-Name-First: Irfan Author-X-Name-Last: Ahmed Author-Name: Claudio Socci Author-X-Name-First: Claudio Author-X-Name-Last: Socci Author-Name: Francesca Severini Author-X-Name-First: Francesca Author-X-Name-Last: Severini Author-Name: Rosita Pretaroli Author-X-Name-First: Rosita Author-X-Name-Last: Pretaroli Author-Name: Hassan Kasady Al Mahdi Author-X-Name-First: Hassan Kasady Author-X-Name-Last: Al Mahdi Title: Unconventional monetary policy and real estate sector: a financial dynamic computable general equilibrium model for Italy Abstract: This study investigates the effects of an expansionary monetary policy on the Italian economy and, in particular, on real estate (RE) as a commodity. RE is a key sector for the Italian economy. It has strong interactions with the other sectors, especially with the financial markets. Therefore, we develop a financial dynamic computable general equilibrium model to analyze the response of RE sector to a shock on money supply. The parameters of the model are calibrated on the financial social accounting matrix for Italy that identifies the economic and financial flows in the economic system in a well-defined time period. Our findings confirm that the policy has a positive impact on real economy and on the RE output, value added and pricing. Journal: Economic Systems Research Pages: 221-238 Issue: 2 Volume: 32 Year: 2020 Month: 4 X-DOI: 10.1080/09535314.2019.1656601 File-URL: http://hdl.handle.net/10.1080/09535314.2019.1656601 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:32:y:2020:i:2:p:221-238 Template-Type: ReDIF-Article 1.0 Author-Name: Yuya Nakamoto Author-X-Name-First: Yuya Author-X-Name-Last: Nakamoto Title: Spatial structural decomposition analysis with a focus on product lifetime Abstract: This study estimates the carbon footprint associated with global final demand for automobiles and petroleum of the U.S.A., Germany, and Japan, which accounted for 31% of the global stock of passenger cars in 2009, during 1995 to 2009. I develop a comprehensive new method to more clearly illuminate the structural change in automobiles’ global final demand. Based on the results, I discuss how a circular strategy with a focus on vehicle lifetime extension contributes to the automobile carbon footprint in each country. While the environmental burden from automobile manufacturing has decreased globally, the Leontief production structure countered carbon reduction and completely canceled out the effects of technological changes to reduce emission intensities. The results showed that suppressing demand for new cars through lifetime extensions greatly reduced the carbon footprint, in a similar or even greater way than that from changes in industrial technology. Journal: Economic Systems Research Pages: 239-261 Issue: 2 Volume: 32 Year: 2020 Month: 4 X-DOI: 10.1080/09535314.2019.1670623 File-URL: http://hdl.handle.net/10.1080/09535314.2019.1670623 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:32:y:2020:i:2:p:239-261 Template-Type: ReDIF-Article 1.0 Author-Name: Cristian Mardones Author-X-Name-First: Cristian Author-X-Name-Last: Mardones Author-Name: Mirko Lipski Author-X-Name-First: Mirko Author-X-Name-Last: Lipski Title: A carbon tax on agriculture? A CGE analysis for Chile Abstract: This paper evaluates the implementation of a tax on CO2 equivalent (CO2eq) emissions produced by the agricultural sector. Computable general equilibrium (CGE) simulations consider tax rates ranging from $5 to $131 USD/ton CO2eq with sensitivity analyses. We find that a tax applied only to agricultural emissions makes agriculture less competitive and, thus, reduces its production. Real GDP falls from 0.00–0.01% to 0.12–0.40% as a result, and total emissions decline from 0.07–0.10% to 1.79–2.25%. The tax is slightly regressive. We conclude that the tax on just agriculture does not substantially reduce emissions. Indeed, we find it is more efficient to apply the tax across the board, while subsidizing the forestry. Journal: Economic Systems Research Pages: 262-277 Issue: 2 Volume: 32 Year: 2020 Month: 4 X-DOI: 10.1080/09535314.2019.1676701 File-URL: http://hdl.handle.net/10.1080/09535314.2019.1676701 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:32:y:2020:i:2:p:262-277 Template-Type: ReDIF-Article 1.0 Author-Name: Ignacio Cazcarro Author-X-Name-First: Ignacio Author-X-Name-Last: Cazcarro Author-Name: Rosa Duarte Author-X-Name-First: Rosa Author-X-Name-Last: Duarte Author-Name: Julio Sánchez Chóliz Author-X-Name-First: Julio Author-X-Name-Last: Sánchez Chóliz Author-Name: Cristina Sarasa Author-X-Name-First: Cristina Author-X-Name-Last: Sarasa Title: Water and production reallocation in the Spanish agri-food system Abstract: Multiregional input–output (MRIO) and computable general equilibrium (CGE) models have greatly facilitated approaches to environmental and economic problems in recent years. This paper examines regional reallocation criteria intended to reduce water constraints in the Spanish economy. Our goal is to assess the impact of alternative allocation scenarios for regional production on the country’s agriculture and agri-food industries, and the associated effects on water resources along the whole length of food supply chains, which display significant asymmetries between regions caused by imbalances in the availability of water resources. We design a CGE model using an MRIO database for Spain. Our scenarios are based on increases in the production of water-intensive crops in regions with more abundant water resources and the development of more sustainable food supply chains between farms and the agri-food industry. Our findings point to a series of policy options that could be applied to ensure successful outcomes in both directions. Journal: Economic Systems Research Pages: 278-299 Issue: 2 Volume: 32 Year: 2020 Month: 4 X-DOI: 10.1080/09535314.2019.1693982 File-URL: http://hdl.handle.net/10.1080/09535314.2019.1693982 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:32:y:2020:i:2:p:278-299 Template-Type: ReDIF-Article 1.0 Author-Name: María-Ángeles Cadarso Author-X-Name-First: María-Ángeles Author-X-Name-Last: Cadarso Author-Name: Fabio Monsalve Author-X-Name-First: Fabio Author-X-Name-Last: Monsalve Author-Name: Guadalupe Arce Author-X-Name-First: Guadalupe Author-X-Name-Last: Arce Title: Emissions burden shifting in global value chains – winners and losers under multi-regional versus bilateral accounting Abstract: International trade leads to emissions burden shifting and threatens mitigation targets. Multiregional input–output (MRIO) and bilateral trade input–output (BTIO) models are widely used to analyse emissions embodied in trade and global value chains. Especially, the last one is used in analysing border tax adjustment (BTA) on the carbon content of imports. The model choice is not trivial. The analysis shows BTIO's inability to capture the consumer-principle throughout the production chain and its inadequacy as an option for consumption-based accounting, because it allocates emissions to the first importing country and to the sector of production, instead to the consumer (both country and region). Regarding the BTA assessment, BTIO tax domestic carbon content of direct imports, but not indirect imported carbon content. MRIO does provide incentives for mitigation in third countries. The differences in allocation of emissions and taxes’ burden of both models have different consequences for developed and undeveloped regions. Journal: Economic Systems Research Pages: 439-461 Issue: 4 Volume: 30 Year: 2018 Month: 10 X-DOI: 10.1080/09535314.2018.1431768 File-URL: http://hdl.handle.net/10.1080/09535314.2018.1431768 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:30:y:2018:i:4:p:439-461 Template-Type: ReDIF-Article 1.0 Author-Name: Utz-Peter Reich Author-X-Name-First: Utz-Peter Author-X-Name-Last: Reich Title: Accounting for international trade in value added: a comment on the OECD–WTO project Abstract: In the global economy of today, global value-added chains allow firms and countries to take apart the production process and do the part they are best at. In response to this new reality, OECD and WTO have launched a common statistics project of the ‘OECD–WTO Trade in Value-Added (TiVA) Database’. The database links national input–output tables with bilateral trade data to develop inter-country input–output tables that allow compiling, and revealing such chains. Its data are actual nominal values compiled at current exchange rates. The paper takes issue with that choice. Recalling that elsewhere in the United Nations national accounting figures are transformed to purchasing power parity before being compared internationally the paper suggests to follow suit and compile international value-added chains at real exchange rates, as well, and it sketches an introductory outline of how to do so. Journal: Economic Systems Research Pages: 462-477 Issue: 4 Volume: 30 Year: 2018 Month: 10 X-DOI: 10.1080/09535314.2018.1434486 File-URL: http://hdl.handle.net/10.1080/09535314.2018.1434486 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:30:y:2018:i:4:p:462-477 Template-Type: ReDIF-Article 1.0 Author-Name: Terrie Walmsley Author-X-Name-First: Terrie Author-X-Name-Last: Walmsley Author-Name: Badri Narayanan Author-X-Name-First: Badri Author-X-Name-Last: Narayanan Author-Name: Angel Aguiar Author-X-Name-First: Angel Author-X-Name-Last: Aguiar Author-Name: Robert McDougall Author-X-Name-First: Robert Author-X-Name-Last: McDougall Title: Building a global database: consequences for the national I–O data Abstract: Global economic analysis requires consistent and balanced data, which necessitates the reconciliation of datasets from both national and international sources. In the case of the Global Trade Analysis Project Data Base, datasets supplied by international sources are considered preferable to national input–output (I–O) tables. As a result, the national I–O data can experience significant adjustments during the reconciliation process due to differences between the national and international datasets. The purpose of this paper is to examine the extent to which national I–O data change during reconciliation. The results demonstrate that the I–O data are altered by the construction process, particularly from the reconciliation of the national I–O data to the international trade and energy datasets. Closer examination reveals potential issues with both the trade and energy datasets, as well as the national I–O data – illustrating the challenges associated with reconciling data from multiple sources. Journal: Economic Systems Research Pages: 478-496 Issue: 4 Volume: 30 Year: 2018 Month: 10 X-DOI: 10.1080/09535314.2018.1440533 File-URL: http://hdl.handle.net/10.1080/09535314.2018.1440533 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:30:y:2018:i:4:p:478-496 Template-Type: ReDIF-Article 1.0 Author-Name: Rossella Bardazzi Author-X-Name-First: Rossella Author-X-Name-Last: Bardazzi Author-Name: Leonardo Ghezzi Author-X-Name-First: Leonardo Author-X-Name-Last: Ghezzi Title: Trade, competitiveness and investment: an empirical assessment Abstract: The Eurozone crisis has exposed several weaknesses of the European Monetary Union economies. This paper aims to assess the impact on external competitiveness of an expansionary capital stock policy that could contribute to reduce the trade balance asymmetries within the EU and help European exporters to recover their competitive role in international markets. A policy action to increase capital stock accumulation through investment in selected European countries could generate a double dividend: increasing both price and nonprice competitiveness, so stimulating their competitive position as exporters, and consolidating the growth path of EU economy. The analysis employs a bilateral trade model built at INFORUM with several distinguishing characteristics: a comprehensive bilateral data set, econometric estimation of key parameters, and emphasis on sectoral details. Our findings show that a capital stock increase is effective in narrowing trade imbalances within EU. Heterogeneous effects are estimated for commodities in China and the US. Journal: Economic Systems Research Pages: 497-520 Issue: 4 Volume: 30 Year: 2018 Month: 10 X-DOI: 10.1080/09535314.2018.1446913 File-URL: http://hdl.handle.net/10.1080/09535314.2018.1446913 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:30:y:2018:i:4:p:497-520 Template-Type: ReDIF-Article 1.0 Author-Name: María T. Álvarez-Martínez Author-X-Name-First: María T. Author-X-Name-Last: Álvarez-Martínez Author-Name: Montserrat López-Cobo Author-X-Name-First: Montserrat Author-X-Name-Last: López-Cobo Title: WIOD SAMs adjusted with Eurostat data for the EU-27 Abstract: This paper provides a new set of Social Accounting Matrices (SAMs) for the EU-27 and describes their construction process. The World Input–Output Database (WIOD) has been used as the main data source, and it has been completed with information from National Accounts in Eurostat. The SAMs include a disaggregation of labour by skills and the disaggregation of the foreign sector into the EU and Rest of the world. It is described how to elaborate a symmetric Input–Output table product by product at purchasers’ prices using supply and use tables and applying the industry technology. It is also described the reallocation of social contributions needed to properly assign tax revenues to government and avoid the usually overlooked problems generated by the second redistribution of income. The description of the SAMs and their availability for the EU-27 can be very useful to researchers in applied economics using CGE and SAM models. Journal: Economic Systems Research Pages: 521-544 Issue: 4 Volume: 30 Year: 2018 Month: 10 X-DOI: 10.1080/09535314.2018.1448758 File-URL: http://hdl.handle.net/10.1080/09535314.2018.1448758 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:30:y:2018:i:4:p:521-544 Template-Type: ReDIF-Article 1.0 Author-Name: Rosa Duarte Author-X-Name-First: Rosa Author-X-Name-Last: Duarte Author-Name: Vicente Pinilla Author-X-Name-First: Vicente Author-X-Name-Last: Pinilla Author-Name: Ana Serrano Author-X-Name-First: Ana Author-X-Name-Last: Serrano Title: Factors driving embodied carbon in international trade: a multiregional input–output gravity model Abstract: Concerns about the effects and consequences of climate change have notably increased in recent decades. Despite large advances in the understanding of this phenomenon, further research into the determinants of gas emissions is necessary, to shed light on the responsibilities of producers and consumers, and their potential contribution to mitigation strategies. This paper studies the trajectories and determinants of carbon embodied in world trade during a period of 15 years. Our methodology relies on a multiregional input–output model, environmentally extended. Drawing on data from the World Input–Output Database, we estimate embodied emissions in bilateral flows. Then, we assess the determinants of CO2 emissions embodied in trade, combining input–output modelling with trade gravity panel data analysis. This paper offers a methodological approach that explains and quantifies the underlying factors of carbon trade, integrating the production and consumption perspectives and considering the geographical, structural and institutional context of countries. Journal: Economic Systems Research Pages: 545-566 Issue: 4 Volume: 30 Year: 2018 Month: 10 X-DOI: 10.1080/09535314.2018.1450226 File-URL: http://hdl.handle.net/10.1080/09535314.2018.1450226 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:30:y:2018:i:4:p:545-566 Template-Type: ReDIF-Article 1.0 Author-Name: Joao-Pedro Ferreira Author-X-Name-First: Joao-Pedro Author-X-Name-Last: Ferreira Author-Name: Michael Lahr Author-X-Name-First: Michael Author-X-Name-Last: Lahr Author-Name: Pedro Ramos Author-X-Name-First: Pedro Author-X-Name-Last: Ramos Author-Name: Eduardo Castro Author-X-Name-First: Eduardo Author-X-Name-Last: Castro Title: Accounting for global migrant remittances flows Abstract: Migrant remittances are important to some countries. According to the World Bank, they comprise more than 30% of the GDP of Kyrgyzstan, Tonga, Tajikistan, Haiti and Nepal. Compared to official development aid or foreign direct investment, remittances have lately become a prime income stream for less-developed nations. In this paper, we analyze the net spillover and feedback effects from the consumer demand generated in migrants’ home countries. We use World Bank estimates of remittances and the World Input-Output Database (WIOD) for the investigation with so-called ‘hypothetical insertion’ as the tool of choice. We find that even some developed nations, like the US, likely benefit from remittances (the largest global path for remittances is that from the US to Mexico), but that not all do (e.g. Canada does not). We stop short of making strong policy recommendations. Instead, we suggest that more attention is paid to the veracity of remittance estimates. Journal: Economic Systems Research Pages: 301-317 Issue: 3 Volume: 32 Year: 2020 Month: 7 X-DOI: 10.1080/09535314.2019.1659756 File-URL: http://hdl.handle.net/10.1080/09535314.2019.1659756 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:32:y:2020:i:3:p:301-317 Template-Type: ReDIF-Article 1.0 Author-Name: Raffaele Giammetti Author-X-Name-First: Raffaele Author-X-Name-Last: Giammetti Title: Tariffs, domestic import substitution and trade diversion in input-output production networks: an exercise on Brexit Abstract: In this paper we employ the World Input–Output Database to develop a multi-sector inter-country model that allows us to identify the channels through which the trade effects of Brexit would propagate. The inclusion of global value chains and indirect Brexit effects in the model leads to estimates that diverge with the results of the main literature. Indeed, we found that Brexit could be risky and costly not only for the UK but also for many EU countries. Furthermore, we develop a second model and present the first empirical analysis on the consequences of domestic import substitution and trade diversion policies in Input–Output schemes. We found that allowing sectors and countries to partly substitute foreign products, leads to significantly lower losses for both macro-regions: the UK and EU27 would lose, at worst, the 0.28 and 0.5 percent of value-added, respectively. Journal: Economic Systems Research Pages: 318-350 Issue: 3 Volume: 32 Year: 2020 Month: 7 X-DOI: 10.1080/09535314.2020.1738347 File-URL: http://hdl.handle.net/10.1080/09535314.2020.1738347 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:32:y:2020:i:3:p:318-350 Template-Type: ReDIF-Article 1.0 Author-Name: Navid Attary Author-X-Name-First: Navid Author-X-Name-Last: Attary Author-Name: Harvey Cutler Author-X-Name-First: Harvey Author-X-Name-Last: Cutler Author-Name: Martin Shields Author-X-Name-First: Martin Author-X-Name-Last: Shields Author-Name: John W. van de Lindt Author-X-Name-First: John W. Author-X-Name-Last: van de Lindt Title: The economic effects of financial relief delays following a natural disaster Abstract: In the U.S. the economic damages of natural disasters have increased substantially over time. While private insurance payouts tend to arrive relatively quickly, federal recovery monies are often allocated unevenly, with some communities waiting years to receive previously designated funds. We examine the costliness of delay by linking an economic model of the Joplin, Missouri economy to a civil engineering model that replicates the damage from a tornado that devastated the community in 2011. Building damage estimates from the natural hazard and engineering models are translated into capital stock losses, which subsequently impact the local economy through lost output. We examine several different recovery paths, with a focus on differences in the timing of recovery assistance. Our results show that delaying financial assistance can have important, irretrievable adverse outcomes in the short run. Journal: Economic Systems Research Pages: 351-377 Issue: 3 Volume: 32 Year: 2020 Month: 7 X-DOI: 10.1080/09535314.2020.1713729 File-URL: http://hdl.handle.net/10.1080/09535314.2020.1713729 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:32:y:2020:i:3:p:351-377 Template-Type: ReDIF-Article 1.0 Author-Name: Tiziano Distefano Author-X-Name-First: Tiziano Author-X-Name-Last: Distefano Author-Name: Marta Tuninetti Author-X-Name-First: Marta Author-X-Name-Last: Tuninetti Author-Name: Francesco Laio Author-X-Name-First: Francesco Author-X-Name-Last: Laio Author-Name: Luca Ridolfi Author-X-Name-First: Luca Author-X-Name-Last: Ridolfi Title: Tools for reconstructing the bilateral trade network: a critical assessment Abstract: This study critically assesses the performances of the Gravity Model (GM) and of the RAS algorithm for the bilateral flow intensity estimations and link prediction. The main novelty is the application of these methodologies to reconstruct the network topology with a minimum amount of information. Moreover, we implement a multi-layer analysis to provide a comprehensive and robust framework, by testing several food commodities, over the period 1986–2013. The main outcomes suggest that the RAS algorithm outperforms the Gravity Model in the estimations of the bilateral trade flows, importantly guaranteeing the balance constraints (i.e. global import equals global export), while GM generates lower relative errors, but it underestimates total global flows. Both RAS and GM can be applied to accurately recover the network architecture. The implications of our study encompass a wide range of applications: systemic-risk assessment, creation of new databases, and scenario analyses to support policy decisions. Journal: Economic Systems Research Pages: 378-394 Issue: 3 Volume: 32 Year: 2020 Month: 7 X-DOI: 10.1080/09535314.2019.1703173 File-URL: http://hdl.handle.net/10.1080/09535314.2019.1703173 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:32:y:2020:i:3:p:378-394 Template-Type: ReDIF-Article 1.0 Author-Name: Sébastien Miroudot Author-X-Name-First: Sébastien Author-X-Name-Last: Miroudot Author-Name: Ming Ye Author-X-Name-First: Ming Author-X-Name-Last: Ye Title: Multinational production in value-added terms Abstract: Micro-level evidence has emphasised that firms that produce across countries are responsible for a large share of international exchanges of goods, services, capital and knowledge. At the aggregate level, quantitative studies that look at multinational production generally rely on the concept of sales of foreign affiliates, which is a gross concept that includes the value of intermediate inputs. In the case of trade, the literature has recently shifted to a value-added approach that can distinguish in exports the contribution of the different economies supplying inputs. In this paper, we propose a framework that decomposes value-added in domestic sales in order to trace its origin and remove any double-counting. We find that an intercountry input–output table split on ownership can yield an analysis of activities of foreign affiliates of multinational firms in value-added terms. Journal: Economic Systems Research Pages: 395-412 Issue: 3 Volume: 32 Year: 2020 Month: 7 X-DOI: 10.1080/09535314.2019.1701997 File-URL: http://hdl.handle.net/10.1080/09535314.2019.1701997 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:32:y:2020:i:3:p:395-412 Template-Type: ReDIF-Article 1.0 Author-Name: Mike G. Tsionas Author-X-Name-First: Mike G. Author-X-Name-Last: Tsionas Title: Bayesian input–output table update using a benchmark LASSO prior Abstract: We propose updating a multiplier matrix subject to final demand and total output constraints, where the prior multiplier matrix is weighted against a LASSO prior. We update elements of the Leontief inverse, from which we can derive posterior densities of the entries in input–output tables. As the parameter estimates required by far exceed the available observations, many zero entries deliver a sparse tabulation. We address that problem with a new statistical model wherein we adopt a LASSO prior. We develop novel numerical techniques and perform a detailed Monte Carlo study to examine the performance of the new approach under different configurations of the input–output table. The new techniques are applied to a 196 × 196 U.S. input–output table for 2012. Journal: Economic Systems Research Pages: 413-427 Issue: 3 Volume: 32 Year: 2020 Month: 7 X-DOI: 10.1080/09535314.2019.1707170 File-URL: http://hdl.handle.net/10.1080/09535314.2019.1707170 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:32:y:2020:i:3:p:413-427 Template-Type: ReDIF-Article 1.0 Author-Name: Junning Cai Author-X-Name-First: Junning Author-X-Name-Last: Cai Author-Name: PingSun Leung Author-X-Name-First: PingSun Author-X-Name-Last: Leung Title: A note on linkage between gross value added and final use at the industry level Abstract: Gross value added (GVA) is a common indicator of an industry/sector’s economic performance. While an economy’s total GVA is always equal to its total final use, an individual industry/sector’s GVA is usually not equal to its final use. Yet an accounting identity between an industry/sector’s GVA and the final use of multiple industries/sectors can be established by a gross value added-final use (GVA-FU) matrix. This paper derives the GVA-FU matrix in the Leontief demand-driven model and its equivalence in the Ghosh supply-driven model and interprets the matrix from different perspectives. The GVA-FU matrix can help policymakers and practitioners better understand an industry/sector’s percentage of gross domestic product (GDP) – the underlying measure behind the United Nations Sustainable Development Goals (SDGs) Indicator 14.7.1 – from the demand-side perspective and facilitate its proper use for policy and planning. The GVA-FU matrix can become a standard component of the input–output apparatus for multiple applications. Journal: Economic Systems Research Pages: 428-437 Issue: 3 Volume: 32 Year: 2020 Month: 7 X-DOI: 10.1080/09535314.2020.1718617 File-URL: http://hdl.handle.net/10.1080/09535314.2020.1718617 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:32:y:2020:i:3:p:428-437 Template-Type: ReDIF-Article 1.0 Author-Name: Bart Los Author-X-Name-First: Bart Author-X-Name-Last: Los Author-Name: Bart Verspagen Author-X-Name-First: Bart Author-X-Name-Last: Verspagen Title: An Introduction to the Analysis of Systems of Innovation: Scientific and Technological Interdependencies Journal: Economic Systems Research Pages: 315-322 Issue: 4 Volume: 14 Year: 2002 Month: 12 X-DOI: 10.1080/0953531022000024815 File-URL: http://hdl.handle.net/10.1080/0953531022000024815 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:14:y:2002:i:4:p:315-322 Template-Type: ReDIF-Article 1.0 Author-Name: Martin Meyer Author-X-Name-First: Martin Author-X-Name-Last: Meyer Title: RETRACTED ARTICLE: Tracing Knowledge Flows in Innovation Systems—an Informetric Perspective on Future Research Science-based Innovation Abstract: We, the Editors and Publisher of Economic Systems Research, have retracted the following article:Martin Meyer, ‘Tracing Knowledge Flows in Innovation Systems—an Informetric Perspective on Future Research Science-based Innovation’, Economic Systems research, 14(4), 2002, Pages 323–344, doi:10.1080/0953531022000024824 This retraction, made in August 2020, is at the request of the author due to significant overlap with the following article:Martin Meyer, ‘Tracing knowledge flows in innovation systems’, Scientometrics, 54 (2), 2002, Pages 193–212, doi:10.1023/A:1016057727209.We note the breach of warranties made by the author with respect to originality, and of our policy on publishing ethics and integrity. We note we received, peer-reviewed, accepted, and published the article in good faith based on these warranties, and censure this action. We have been informed in our decision-making by our policy on publishing ethics and integrity and the COPE guidelines on retractions.The retracted article will remain online to maintain the scholarly record, but it will be digitally watermarked on each page as “Retracted”. Journal: Economic Systems Research Pages: 323-344 Issue: 4 Volume: 14 Year: 2002 Month: 12 X-DOI: 10.1080/0953531022000024824 File-URL: http://hdl.handle.net/10.1080/0953531022000024824 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:14:y:2002:i:4:p:323-344 Template-Type: ReDIF-Article 1.0 Author-Name: Koen Frenken Author-X-Name-First: Koen Author-X-Name-Last: Frenken Title: A New Indicator of European Integration and an Application to Collaboration in Scientific Research Abstract: The goal of this study is to develop a comprehensive indicator of integration among countries within a supranational system. Integration is not analysed in terms of the growth in interactions among countries, but in terms of the matrix distribution of interactions among countries. Integration can then be indicated in terms of interaction biases among countries measured by the difference between the observed matrix distribution and the hypothetical random distribution. The indicator is applied to data on research collaborations among European research institutions (1993-2000). Evidence is found that the European science system has indeed become more integrated. The higher level of integration has resulted exclusively from a more evenly distributed pattern of European collaborations, while the strong bias towards intra-national collaborations persisted. The results point to the persistence of national science systems. A future research agenda and science policy implications are discussed. Journal: Economic Systems Research Pages: 345-361 Issue: 4 Volume: 14 Year: 2002 Month: 12 X-DOI: 10.1080/0953531022000024833 File-URL: http://hdl.handle.net/10.1080/0953531022000024833 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:14:y:2002:i:4:p:345-361 Template-Type: ReDIF-Article 1.0 Author-Name: Finn Valentin Author-X-Name-First: Finn Author-X-Name-Last: Valentin Author-Name: Rasmus Lund Jensen Author-X-Name-First: Rasmus Lund Author-X-Name-Last: Jensen Title: Reaping the Fruits of Science: Comparing Exploitations of a Scientific Breakthrough in European Innovation Systems Abstract: This paper is an attempt to unpack the emergence and dynamics of science-based technologies in conceptual forms that allow us to understand better when and how the social and economic organization of search and problem-solving matters. The evolution over two decades of a specific science-based technology is mapped with data from its 192 patents. For the five European countries generating the majority of patents, we identify the host organizations of all 275 inventors involved in the R&D behind the patents. Using network analysis we then map the evolution of separate innovation systems and their structural and evolutionary characteristics. The best performing system combines a cumulative pattern with frequent and shifting connections to non-system R&D partners while maintaining a small core of almost omnipresent inventor-organizations. The role of multinational corporations in orchestrating innovation systems is apparent. Journal: Economic Systems Research Pages: 363-388 Issue: 4 Volume: 14 Year: 2002 Month: 12 X-DOI: 10.1080/0953531022000024842 File-URL: http://hdl.handle.net/10.1080/0953531022000024842 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:14:y:2002:i:4:p:363-388 Template-Type: ReDIF-Article 1.0 Author-Name: Ina Drejer Author-X-Name-First: Ina Author-X-Name-Last: Drejer Title: Business Services as a Production Factor Abstract: Based on the assumption that business services are influential production factors, an empirical analysis of the relation between business service inputs and production output in user sectors is carried out. Danish data from 52 manufacturing and service sectors covering the period 1970-95 are applied in the analysis. A sectoral dimension is introduced by dividing the 52 sectors into eight sectoral groupings and then allowing the slopes of the different variables included in the model to vary between the eight groups. The empirical analysis offers some support to the assumption that business services can have an effect comparable to traditional production factors, although this only applies to service sectors, and, partly, to low-knowledge manufacturing. Journal: Economic Systems Research Pages: 389-405 Issue: 4 Volume: 14 Year: 2002 Month: 12 X-DOI: 10.1080/0953531022000024851 File-URL: http://hdl.handle.net/10.1080/0953531022000024851 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:14:y:2002:i:4:p:389-405 Template-Type: ReDIF-Article 1.0 Author-Name: Erik Dietzenbacher Author-X-Name-First: Erik Author-X-Name-Last: Dietzenbacher Author-Name: Bart Los Author-X-Name-First: Bart Author-X-Name-Last: Los Title: Externalities of R&D Expenditures Abstract: Innovation is generally recognized as a major source of economic growth. R&D investments explicitly aim at generating innovations and creating knowledge. Since knowledge has certain public good properties, positive externalities are likely to exist. In this paper, we extend well-known concepts from the input-output literature (backward multipliers) to indicate at which commodities stimuli should be targeted to enhance R&D and its positive externalities in the economy as a whole. Next, we argue that there may also be negative externalities of R&D, due to increased prices. This issue can be studied by means of forward multipliers. Both concepts are applied to the United States, 1977-90. Journal: Economic Systems Research Pages: 407-425 Issue: 4 Volume: 14 Year: 2002 Month: 12 X-DOI: 10.1080/0953531022000024860 File-URL: http://hdl.handle.net/10.1080/0953531022000024860 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:14:y:2002:i:4:p:407-425 Template-Type: ReDIF-Article 1.0 Author-Name: The Editors Title: Annual Report of the IIOA, 2001 Journal: Economic Systems Research Pages: 427-430 Issue: 4 Volume: 14 Year: 2002 Month: 12 X-DOI: 10.1080/0953531022000024879 File-URL: http://hdl.handle.net/10.1080/0953531022000024879 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:14:y:2002:i:4:p:427-430 Template-Type: ReDIF-Article 1.0 Author-Name: Albert E. Steenge Author-X-Name-First: Albert E. Author-X-Name-Last: Steenge Author-Name: Rachel C. Reyes Author-X-Name-First: Rachel C. Author-X-Name-Last: Reyes Title: Return of the capital coefficients matrix Abstract: A core ingredient of post-disaster input–output recovery models is the reconstruction of lost production capacity. Therefore, one would expect a set of models endowed with capital coefficients matrices to be available for analysis. However, this is not the case, possibly due to earlier negative experiences with such models. Nevertheless, in this paper, we aim to show that there is a class of problems that can be addressed successfully with a dynamic input–output model with a fully functioning capital coefficients matrix. We put forward that if reconstruction is tightly planned, investment and therewith gross output essentially become pre-determined. This also means that traditional final demand becomes an endogenous residual, with the model being transformed into a distribution and allocation model. We begin with a reordering of variables and equations as proposed in Leontief’s dynamic inverse, and then move on directly to the newly proposed model. Suggestions for further work are given. Journal: Economic Systems Research Pages: 439-450 Issue: 4 Volume: 32 Year: 2020 Month: 10 X-DOI: 10.1080/09535314.2020.1731682 File-URL: http://hdl.handle.net/10.1080/09535314.2020.1731682 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:32:y:2020:i:4:p:439-450 Template-Type: ReDIF-Article 1.0 Author-Name: Carl-Johan H. Södersten Author-X-Name-First: Carl-Johan H. Author-X-Name-Last: Södersten Author-Name: Manfred Lenzen Author-X-Name-First: Manfred Author-X-Name-Last: Lenzen Title: A supply-use approach to capital endogenization in input–output analysis Abstract: Input–output analysis currently treats capital investment as exogenous to the inter-industry system despite capital goods being used further in production processes. Previous studies have applied the Leontief calculus to include impacts of capital in footprint calculations. Here, we adopt a supply-use approach to incorporating capital into footprint calculations, by constructing capital supply-use tables (KSUTs) that enable differentiating capital goods. As the new KSUT formalism is compliant with the Supply-Use formalism in the UN's System of National Accounts, we can keep full transparency throughout the process of calculating impact multipliers. We demonstrate the usefulness of the KSUT framework in a case study of the Australian economy, with environmental extensions from the EXIOBASE3 database. If consumption-based emissions were considered for the UN's Framework Convention on Climate Change, the KSUT framework would provide a consistent and transparent foundation for working out countries’ responsibility for carbon emissions from both current use and capital investment. Journal: Economic Systems Research Pages: 451-475 Issue: 4 Volume: 32 Year: 2020 Month: 10 X-DOI: 10.1080/09535314.2020.1784852 File-URL: http://hdl.handle.net/10.1080/09535314.2020.1784852 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:32:y:2020:i:4:p:451-475 Template-Type: ReDIF-Article 1.0 Author-Name: Nino Mushkudiani Author-X-Name-First: Nino Author-X-Name-Last: Mushkudiani Author-Name: Jeroen Pannekoek Author-X-Name-First: Jeroen Author-X-Name-Last: Pannekoek Author-Name: Li-Chun Zhang Author-X-Name-First: Li-Chun Author-X-Name-Last: Zhang Title: Uncertainty measures for economic accounts Abstract: The problem of adjusting large systems of estimated economic or social accounts such that they fulfill known functional relationships can be quite complex. For such complex systems, evaluating the accuracy of the estimates after the adjustment is difficult since these estimates are defined by unadjusted initial estimates, the accounting equations and the adjustment method. In this paper, we consider such accounting systems as a single entity and develop scalar uncertainty measures that are based on the first two moments of the joint distribution of final adjusted estimates. Scalar measures can help to effectively communicate to the users the relevant uncertainty of disseminated macro-economic accounts and can assist the producer in choosing and improving adjustment method and input estimators. The proposed approach is illustrated both analytically and by simulation. Applications to supply and use tables and to time series data are presented. Journal: Economic Systems Research Pages: 476-501 Issue: 4 Volume: 32 Year: 2020 Month: 10 X-DOI: 10.1080/09535314.2020.1792843 File-URL: http://hdl.handle.net/10.1080/09535314.2020.1792843 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:32:y:2020:i:4:p:476-501 Template-Type: ReDIF-Article 1.0 Author-Name: Francesca Severini Author-X-Name-First: Francesca Author-X-Name-Last: Severini Author-Name: Rosita Pretaroli Author-X-Name-First: Rosita Author-X-Name-Last: Pretaroli Author-Name: Claudio Socci Author-X-Name-First: Claudio Author-X-Name-Last: Socci Author-Name: Jacopo Zotti Author-X-Name-First: Jacopo Author-X-Name-Last: Zotti Author-Name: Giancarlo Infantino Author-X-Name-First: Giancarlo Author-X-Name-Last: Infantino Title: The suggested structure of final demand shock for sectoral labour digital skills Abstract: International data seem to confirm that countries with a relative abundancy of highly-skilled labour with digital competences grow faster than others. For this reason, digital competences and skills in general are progressively assuming a central role in labour market policies. In this article, we show the potential of the disaggregated multisectoral analysis with the macro multipliers approach as a tool of economic policy. Such analyses allow identifying a set of endogenous policies in which specific objectives do not clash with growth objectives. The identification and the quantification of the macro multipliers is based on an extended multi-industry, multi-factor and multi-sector model, which accounts for the representation of the income circular flow as in the social accounting matrix (SAM). The SAM constructed for this exercise allows for a proper disaggregation of the labour factor by formal educational attainment, digital competences and gender for the case of Italy. Journal: Economic Systems Research Pages: 502-520 Issue: 4 Volume: 32 Year: 2020 Month: 10 X-DOI: 10.1080/09535314.2020.1726296 File-URL: http://hdl.handle.net/10.1080/09535314.2020.1726296 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:32:y:2020:i:4:p:502-520 Template-Type: ReDIF-Article 1.0 Author-Name: Julio Gustavo Fournier Gabela Author-X-Name-First: Julio Gustavo Author-X-Name-Last: Fournier Gabela Title: On the accuracy of gravity-RAS approaches used for inter-regional trade estimation: evidence using the 2005 inter-regional input–output table of Japan Abstract: In contrast to international trade, it is still difficult to find regional trade statistics within a nation. Given that the gravity model continues to be very popular, we test two gravity-RAS approaches used for interregional trade estimation: a standard one and an extended version, which additionally estimates intra-regional flows. We assess the accuracy with the help of two measures and for different sectoral aggregation levels. For that, we use the survey-based 2005 interregional input–output table of Japan as a benchmark. Results show high overall accuracy levels for the standard approach, better than when using international data, albeit with heterogeneous errors for sectors and regions. We further find that the results of a multiregional input-output model are highly sensitive to the trade estimation approach and that errors slightly increase for increasing sectoral disaggregation levels. Results from an experiment based on a random number generator show how RAS influences results. Journal: Economic Systems Research Pages: 521-539 Issue: 4 Volume: 32 Year: 2020 Month: 10 X-DOI: 10.1080/09535314.2020.1753662 File-URL: http://hdl.handle.net/10.1080/09535314.2020.1753662 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:32:y:2020:i:4:p:521-539 Template-Type: ReDIF-Article 1.0 Author-Name: Hao Xiao Author-X-Name-First: Hao Author-X-Name-Last: Xiao Author-Name: Bo Meng Author-X-Name-First: Bo Author-X-Name-Last: Meng Author-Name: Jiabai Ye Author-X-Name-First: Jiabai Author-X-Name-Last: Ye Author-Name: Shantong Li Author-X-Name-First: Shantong Author-X-Name-Last: Li Title: Are global value chains truly global? Abstract: Are global value chains (GVCs) truly global or are they more of a regional phenomenon? We provide a new perspective on this issue using network analysis based on the measure of trade in value added. We first show that GVC activities can be consistently identified and grouped into three types of networks, i.e. traditional, simple, and complex trade networks, according to the number of times that factor contents cross national borders in global production sharing. Further investigation on the changes in topology and structure of various networks reveals that, GVCs are more likely organized regionally and dominated by large countries, like the US, China, and Germany. However, at the sector level, what GVCs look like largely depends on the perspective (supply or demand) and the type of networks adopted. This can help better understand the possible structural change of GVCs brought by the US–China trade war and the COVID-19 pandemic. Journal: Economic Systems Research Pages: 540-564 Issue: 4 Volume: 32 Year: 2020 Month: 10 X-DOI: 10.1080/09535314.2020.1783643 File-URL: http://hdl.handle.net/10.1080/09535314.2020.1783643 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:32:y:2020:i:4:p:540-564 Template-Type: ReDIF-Article 1.0 Author-Name: Eduardo A. Haddad Author-X-Name-First: Eduardo A. Author-X-Name-Last: Haddad Author-Name: Fatima Ezzahra Mengoub Author-X-Name-First: Fatima Ezzahra Author-X-Name-Last: Mengoub Author-Name: Vinicius A. Vale Author-X-Name-First: Vinicius A. Author-X-Name-Last: Vale Title: Water content in trade: a regional analysis for Morocco Abstract: This paper aims at evaluating the virtual water content in trade in an intra-country perspective and discussing potential tradeoffs between the use of natural resources and value added creation. We develop a trade-based index that reveals the relative water use intensities associated with specific interregional and international trade flows. The index is calculated considering the measures of water and value added embedded in trade flows associated with each regional origin-destination pair using an interregional input-output matrix for Morocco together with information on sectorial water use. We add to the literature on virtual water by encompassing the subnational perspective in a country that shows a clear ‘climate divide’. Furthermore, we contribute to the literature by proposing an index that may be applied to different economies to evaluate multidimensional trade-offs associated with the pressure of specific economic flows to the use of natural resources relative to its economic relevance. Journal: Economic Systems Research Pages: 565-584 Issue: 4 Volume: 32 Year: 2020 Month: 10 X-DOI: 10.1080/09535314.2020.1756228 File-URL: http://hdl.handle.net/10.1080/09535314.2020.1756228 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:32:y:2020:i:4:p:565-584 Template-Type: ReDIF-Article 1.0 Author-Name: The Editors Title: Retraction: Tracing Knowledge Flows in Innovation Systems—an Informetric Perspective on Future Research Science-based Innovation Journal: Economic Systems Research Pages: 585-585 Issue: 4 Volume: 32 Year: 2020 Month: 10 X-DOI: 10.1080/09535314.2020.1804704 File-URL: http://hdl.handle.net/10.1080/09535314.2020.1804704 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:32:y:2020:i:4:p:585-585 Template-Type: ReDIF-Article 1.0 Author-Name: Lei Zhou Author-X-Name-First: Lei Author-X-Name-Last: Zhou Author-Name: Zhenhua Chen Author-X-Name-First: Zhenhua Author-X-Name-Last: Chen Title: Are CGE models reliable for disaster impact analyses? Abstract: This study investigates a fundamental issue of computable general equilibrium (CGE) modeling: are CGE models reliable for measuring the economic consequence analysis of disasters? We assess the outputs of CGE analyses after controlling for various modeling factors such as data, type of model, and modeling mechanisms via a meta-analysis of 253 CGE simulations in 57 empirical studies. Our study arrives at three major findings. First, we confirm that resilience significantly reduces business disruptions from disasters. Second, results using either real-world or hypothetical data tend to vary substantially by hazard type. Third, results are quite sensitive to model assumptions and modeling structure. Overall, we suggest that future impact assessments of disasters should be conducted more cautiously in terms of adopting appropriate data, models, and shock scenarios, in order to improve the validity of CGE modeling outcomes. Journal: Economic Systems Research Pages: 20-46 Issue: 1 Volume: 33 Year: 2021 Month: 01 X-DOI: 10.1080/09535314.2020.1780566 File-URL: http://hdl.handle.net/10.1080/09535314.2020.1780566 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:33:y:2021:i:1:p:20-46 Template-Type: ReDIF-Article 1.0 Author-Name: Pablo Moya-Martínez Author-X-Name-First: Pablo Author-X-Name-Last: Moya-Martínez Author-Name: Fernando Bermejo Author-X-Name-First: Fernando Author-X-Name-Last: Bermejo Author-Name: Raúl del Pozo-Rubio Author-X-Name-First: Raúl Author-X-Name-Last: del Pozo-Rubio Title: Hard times for long-term care systems? Spillover effects on the Spanish economy Abstract: Since the end of the last century, demographic aging has led to an increased demand for new social protection services. Universalizing these to meet the needs of the most vulnerable requires the design of policies that ensure the sustainability of the system. Consequently, the economic structure of a country and its productive fabric are affected. Assessing the impact of this growing demand is not an easy task, although extended input-output models can help. With this aim, we determine the spillover effects of the demand shocks arising from the increase in public spending allocated for the implementation of the Spanish long-term care system. The results reveal that such spending proves efficient in sustaining 116,000 jobs, most of which are in social work activities, entailing a large amount of direct but low-skilled employment. In addition, 5,000 million euros are generated in value added, including a fiscal return of 1,400 million euros. Journal: Economic Systems Research Pages: 1-19 Issue: 1 Volume: 33 Year: 2021 Month: 1 X-DOI: 10.1080/09535314.2020.1752627 File-URL: http://hdl.handle.net/10.1080/09535314.2020.1752627 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:33:y:2021:i:1:p:1-19 Template-Type: ReDIF-Article 1.0 Author-Name: Yuwan Duan Author-X-Name-First: Yuwan Author-X-Name-Last: Duan Author-Name: Ting Ji Author-X-Name-First: Ting Author-X-Name-Last: Ji Author-Name: Dongzhou Mei Author-X-Name-First: Dongzhou Author-X-Name-Last: Mei Title: Tariff costs embodied in product prices: a dynamic analysis from global value chain perspective Abstract: The present study examines a measure, the embodied tariff, which is defined as the sum of all tariffs imposed on intermediate inputs at various stages of productions. It captures the total tariff costs in products in the context of the global value chain. We estimate the embodied tariff for 44 economies and 56 sectors, decompose it by tariff source, and also decompose its temporal changes using structural decomposition analysis. The embodied tariff is more than twice the size of the traditional direct input tariff, indicating a non-negligible value chain effect. This demonstrates an overall declining pattern over time, which reflects a dominating effect of decreasing customs tariffs over increasing international production fragmentation. Since 2011, however, the decline in international production fragmentation has also decreased embodied tariffs. A country’s customs tariff is sizably translated into the embodied tariff of its own products, creating a competitive disadvantage for domestic producers. Journal: Economic Systems Research Pages: 88-113 Issue: 1 Volume: 33 Year: 2021 Month: 1 X-DOI: 10.1080/09535314.2020.1769562 File-URL: http://hdl.handle.net/10.1080/09535314.2020.1769562 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:33:y:2021:i:1:p:88-113 Template-Type: ReDIF-Article 1.0 Author-Name: Fidel Aroche Reyes Author-X-Name-First: Fidel Author-X-Name-Last: Aroche Reyes Title: On growth regimes, structural change and input coefficients Abstract: The Input-Output model assumes that the technical coefficient matrix changes as an economic system develops, following either of two tendencies; one, the entries of the matrix shrink, due to increased efficiency on the production lines; two, they expand, while productivity gains concentrate in the use of factors. Further, the economic structure grows more complex, as industries become more tightly (vertically) integrated and the development process evolves. Both phenomena have seldom been analysed together, despite the apparent connections they may have with the evolution of economic structures and the development opportunities countries may face. This paper intends to examine the implications of these tendencies for the evolution of economic systems in regards to the dynamics the growth process may adopt. Two indicators are presented here useful to characterise such dynamics, later tested on the Mexican IO data. Journal: Economic Systems Research Pages: 114-131 Issue: 1 Volume: 33 Year: 2021 Month: 1 X-DOI: 10.1080/09535314.2020.1730769 File-URL: http://hdl.handle.net/10.1080/09535314.2020.1730769 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:33:y:2021:i:1:p:114-131 Template-Type: ReDIF-Article 1.0 Author-Name: Grant J Allan Author-X-Name-First: Grant J Author-X-Name-Last: Allan Author-Name: Kevin Connolly Author-X-Name-First: Kevin Author-X-Name-Last: Connolly Author-Name: Stuart G McIntyre Author-X-Name-First: Stuart G Author-X-Name-Last: McIntyre Title: Developing an electricity satellite account (ELSA): an application to Scotland, UK Abstract: Within the system of national accounts the electricity sector is typically reported as a single entry representing generation, transmission, distribution and trade. The ways in which these components interact with the economy differ greatly, a feature lost within the standard accounting framework. In this paper we propose an Electricity Satellite Account (ELSA) approach to better understand the linkages between the electricity sector and economy, with a particular focus on generation technologies. In developing this framework, we draw parallels with Tourism Satellite Accounts (TSAs). To illustrate the practical steps in constructing ELSAs, we develop an ELSA for Scotland for 2012, and show how the ELSA framework gives an improved understanding of the economic contribution of the electricity sector, which is critical in improving the usefulness of such accounts for climate, energy, and economic policy. Journal: Economic Systems Research Pages: 47-66 Issue: 1 Volume: 33 Year: 2021 Month: 1 X-DOI: 10.1080/09535314.2020.1754166 File-URL: http://hdl.handle.net/10.1080/09535314.2020.1754166 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:33:y:2021:i:1:p:47-66 Template-Type: ReDIF-Article 1.0 Author-Name: Sébastien Miroudot Author-X-Name-First: Sébastien Author-X-Name-Last: Miroudot Author-Name: Ming Ye Author-X-Name-First: Ming Author-X-Name-Last: Ye Title: Decomposing value added in gross exports Abstract: Several papers using intercountry IO tables have developed frameworks to decompose value added in gross exports and to remove potential double-counting in intermediate inputs. But these papers rely on different definitions for the domestic value added, foreign value added and double-counting terms, depending in particular on the perspective from which gross exports are decomposed (world level, country level or bilateral level). At this stage, it is very difficult for any user of value-added trade statistics to know what is calculated and which type of decomposition should be used. In this paper, we provide a general framework that relies on extraction matrices to unambiguously and consistently define domestic and foreign value-added terms in the world, country and bilateral perspective. This framework allows us to classify existing decompositions based on the perspective taken and their definition of double-counting. We also indicate the most relevant decompositions for different types of trade analysis. Journal: Economic Systems Research Pages: 67-87 Issue: 1 Volume: 33 Year: 2021 Month: 1 X-DOI: 10.1080/09535314.2020.1730308 File-URL: http://hdl.handle.net/10.1080/09535314.2020.1730308 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:33:y:2021:i:1:p:67-87 Template-Type: ReDIF-Article 1.0 Author-Name: José Francisco Cubells Author-X-Name-First: José Francisco Author-X-Name-Last: Cubells Author-Name: Maria C. Latorre Author-X-Name-First: Maria C. Author-X-Name-Last: Latorre Title: Brexit deal done! A detailed micro- and macroeconomic analysis of its fallout Abstract: We offer a rich set of macroeconomic and sectoral effects of Brexit in France, together with macroeconomic ones for the UK, the rest of the EU and the rest of the world. We explain the intuition for the impact on production and trade across the 21 sectors that underlie our macroeconomic estimations (national imports and exports, output, GDP, welfare, wages and rental rate of capital). Our comprehensive technique captures the direct and indirect effects of Brexit on trade. Four types of withdrawal are analysed, including the finally agreed between the EU and the UK on December 2020. This will avoid tariffs, but other medium size (non-tariff) barriers will emerge. The UK, France and the rest of the EU will be harmed by Brexit, although asymmetrically. While Brexit will substantially harm the UK economy, the negative impact on France and the rest of the EU will be limited and similar. Journal: Economic Systems Research Pages: 171-196 Issue: 2 Volume: 33 Year: 2021 Month: 04 X-DOI: 10.1080/09535314.2021.1887089 File-URL: http://hdl.handle.net/10.1080/09535314.2021.1887089 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:33:y:2021:i:2:p:171-196 Template-Type: ReDIF-Article 1.0 Author-Name: Juan Manuel Valderas-Jaramillo Author-X-Name-First: Juan Manuel Author-X-Name-Last: Valderas-Jaramillo Author-Name: José Manuel Rueda-Cantuche Author-X-Name-First: José Manuel Author-X-Name-Last: Rueda-Cantuche Author-Name: Joerg Beutel Author-X-Name-First: Joerg Author-X-Name-Last: Beutel Title: The Euro and SUT-RAS methods: some further considerations Abstract: The main objective of this paper is to revisit the Euro method in a critical and constructive way. We have analysed some arguments against the Euro method published recently in the literature as well as some other relevant aspects of the SUT-Euro and SUT-RAS methods not covered before. Although not being the Euro method perfect, we believe that there is still space for the use of the Euro method in updating/regionalizing Supply and Use tables. Journal: Economic Systems Research Pages: 276-286 Issue: 2 Volume: 33 Year: 2021 Month: 04 X-DOI: 10.1080/09535314.2021.1883553 File-URL: http://hdl.handle.net/10.1080/09535314.2021.1883553 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:33:y:2021:i:2:p:276-286 Template-Type: ReDIF-Article 1.0 Author-Name: Umed Temursho Author-X-Name-First: Umed Author-X-Name-Last: Temursho Title: On the Euro method Abstract: This paper critically examines the Euro method usage for the purposes of updating supply and use tables (SUTs) and/or input–output tables. Its known restricted applicability to only unnecessarily aggregated and symmetric SUTs (and not their underlying rectangular versions) is already an issue of concern. However, by studying analytically the nature of Euro's adjustments of the SUT elements and empirically assessing some of its underlying assumptions, including newly revealed ones, it is concluded that the Euro method is a largely ad hoc updating procedure. Its recently claimed superiority over the generalized RAS approach (GRAS, or SUT-RAS) in the absence of industry output is challenged. It is shown that applying the standard GRAS with exogenously given estimates of industry outputs under such restricted data-availability environment still outperforms the Euro method. Journal: Economic Systems Research Pages: 250-275 Issue: 2 Volume: 33 Year: 2021 Month: 04 X-DOI: 10.1080/09535314.2020.1772727 File-URL: http://hdl.handle.net/10.1080/09535314.2020.1772727 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:33:y:2021:i:2:p:250-275 Template-Type: ReDIF-Article 1.0 Author-Name: Clio Ciaschini Author-X-Name-First: Clio Author-X-Name-Last: Ciaschini Author-Name: Francesco Maria Chelli Author-X-Name-First: Francesco Maria Author-X-Name-Last: Chelli Title: Evaluating the impact of violence against women in the macroeconomic Input–Output framework Abstract: Violence against women and girls (VAW&G) has progressively become an emergency issue in many European countries and a relevant topic of public discussion. In this paper, we attempt to insert this theme within a model for macroeconomic policy design and evaluation. Special attention is devoted to the assessment of distortions in the allocation of public expenditure generated by VAW&G, in terms of gains and losses in aggregate total output. We adopt a macroeconomic input–output approach by adding to the framework an industry that produces care services to victims of VAW&G. The resulting model is integrated with the public expenditure reallocations that emerge as a result of the progressive elimination of violence. It is, thus, a simulation tool for determining total output gains or losses that emerge from the reallocation of public expenditures as VAW&G fades. Journal: Economic Systems Research Pages: 214-249 Issue: 2 Volume: 33 Year: 2021 Month: 04 X-DOI: 10.1080/09535314.2020.1790505 File-URL: http://hdl.handle.net/10.1080/09535314.2020.1790505 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:33:y:2021:i:2:p:214-249 Template-Type: ReDIF-Article 1.0 Author-Name: Wei-Hong Hong Author-X-Name-First: Wei-Hong Author-X-Name-Last: Hong Author-Name: Hui-Chih Chai Author-X-Name-First: Hui-Chih Author-X-Name-Last: Chai Author-Name: Y.-H. Henry Chen Author-X-Name-First: Y.-H. Henry Author-X-Name-Last: Chen Author-Name: John M. Reilly Author-X-Name-First: John M. Author-X-Name-Last: Reilly Author-Name: Sergey Paltsev Author-X-Name-First: Sergey Author-X-Name-Last: Paltsev Title: Will using newer input–output data for general equilibrium modeling provide a better estimate for the CO2 mitigation cost? Abstract: We provide a critical evaluation about how updating the input–output data of a computable generation equilibrium model can affect policy results, an assessment that is rarely done in existing literature. Specifically, we explore how datasets with different fossil energy cost shares alter results of policy simulations that aim at reducing CO2 emissions. We prove analytically that a sudden fossil fuel price surge, which provides little time for adjustment through input substitution, can lead to a higher CO2 mitigation cost. The finding is demonstrated empirically in a full-scale economy-wide model for a base year with lower fossil fuel prices, contrasted with results from a base year when fossil fuel prices spiked. We then propose an adjustment to resolve the issues of using input–output data that embed abrupt fossil fuel price hikes. Journal: Economic Systems Research Pages: 157-170 Issue: 2 Volume: 33 Year: 2021 Month: 04 X-DOI: 10.1080/09535314.2020.1784098 File-URL: http://hdl.handle.net/10.1080/09535314.2020.1784098 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:33:y:2021:i:2:p:157-170 Template-Type: ReDIF-Article 1.0 Author-Name: Alfredo J. Mainar-Causapé Author-X-Name-First: Alfredo J. Author-X-Name-Last: Mainar-Causapé Author-Name: George Philippidis Author-X-Name-First: George Author-X-Name-Last: Philippidis Author-Name: Ana I. Sanjuán-López Author-X-Name-First: Ana I. Author-X-Name-Last: Sanjuán-López Title: Constructing an open access economy-wide database for bioeconomy impact assessment in the European Union member states Abstract: The bioeconomy encompasses the extraction, processing and transformation of renewable biological resources and waste streams, connected to activities as diverse as food, feed, energy and manufacturing. Under the auspices of the European Union’s ‘Green Deal' strategy, this broad collective of sectors is promoted as a cornerstone for achieving sustainable growth. Progress in developing ex-ante tools of economy-wide modelling analysis to assess its performance is, however, hindered by a paucity of consistent and comprehensive data. To overcome this shortcoming, the construction steps for a new set of open access social accounting matrices (dubbed ‘BioSAMs’) is described for a detailed and comprehensive selection of traditional and contemporary bio-based accounts for each of the EU member states. To illustrate its potential, a structural analysis based on three different and complementary methods (Rasmussen-Jones, hypothetical extraction method and eigenvector) is performed to classify bio-based sector wealth generating properties and to identify high performance (‘key') sectors. Journal: Economic Systems Research Pages: 133-156 Issue: 2 Volume: 33 Year: 2021 Month: 04 X-DOI: 10.1080/09535314.2020.1785848 File-URL: http://hdl.handle.net/10.1080/09535314.2020.1785848 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:33:y:2021:i:2:p:133-156 Template-Type: ReDIF-Article 1.0 Author-Name: Terciane Sabadini Carvalho Author-X-Name-First: Terciane Sabadini Author-X-Name-Last: Carvalho Author-Name: Flaviane Souza Santiago Author-X-Name-First: Flaviane Souza Author-X-Name-Last: Santiago Author-Name: Fernando Salgueiro Perobelli Author-X-Name-First: Fernando Salgueiro Author-X-Name-Last: Perobelli Title: Demographic change in Brazil and its impacts on CO2 emissions Abstract: In recent years, the debate about demographic changes and its impacts on the economy has increased. The growth in the relative share of elderly people in the age pyramid may occur in the coming decades in many parts of the world, and their effects on the composition of consumption, notably on energy demand and emissions, are not yet known. This article estimates the changes in the pattern of consumption in Brazil due to the changes projected in the age pyramid in 2050 and the consequences of these changes on CO2 emissions. For this, projections will be made using an input–output model for the Brazilian economy for the year 2010 considering 67 productive sectors and six age groups. The results suggest that emissions grow less than proportionally to population growth and that the participation of sectors such as fuels and transport shows a small decrease in the consumption vector for 2050. Journal: Economic Systems Research Pages: 197-213 Issue: 2 Volume: 33 Year: 2021 Month: 04 X-DOI: 10.1080/09535314.2020.1783210 File-URL: http://hdl.handle.net/10.1080/09535314.2020.1783210 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:33:y:2021:i:2:p:197-213 Template-Type: ReDIF-Article 1.0 Author-Name: Zhenguo Wang Author-X-Name-First: Zhenguo Author-X-Name-Last: Wang Author-Name: Yabin Zhang Author-X-Name-First: Yabin Author-X-Name-Last: Zhang Author-Name: Meng Niu Author-X-Name-First: Meng Author-X-Name-Last: Niu Author-Name: Zijie Fan Author-X-Name-First: Zijie Author-X-Name-Last: Fan Title: How important is domestic and foreign demand for China’s income growth by business function? Abstract: This paper explores the contribution of domestic and foreign demand to China’s income growth by business function. To this end, we extend a single country input–output approach to a global multi-country setting, and further redefine the measure via forward linkages. We also propose chaining structural decomposition analysis to identify the role of domestic and foreign demand in functional income changes over 1999–2011. Using the World Input–Output Database combined with Labor Occupations Database, we distinguish functional activities in production, management, marketing and R&D. This enables us to find that domestic and foreign final demands, especially the former, jointly lead to China’s income growth by business function. Dynamically, the generally upward trends in China’s income hold in the aggregate as well as by industry and business function. We also find that China’s income growth is quite heterogeneous across industries and business functions. Journal: Economic Systems Research Pages: 316-335 Issue: 3 Volume: 33 Year: 2021 Month: 07 X-DOI: 10.1080/09535314.2020.1792417 File-URL: http://hdl.handle.net/10.1080/09535314.2020.1792417 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:33:y:2021:i:3:p:316-335 Template-Type: ReDIF-Article 1.0 Author-Name: Carlos Llano Author-X-Name-First: Carlos Author-X-Name-Last: Llano Author-Name: Julián Pérez Author-X-Name-First: Julián Author-X-Name-Last: Pérez Author-Name: Fatima El Khatabi Author-X-Name-First: Fatima Author-X-Name-Last: El Khatabi Author-Name: Federico Steinberg Author-X-Name-First: Federico Author-X-Name-Last: Steinberg Title: Weaponized trade policy: the impact of US tariffs on the European automobile sector Abstract: With trade tensions running high, the Trump Administration is considering new tariffs on imported automobiles, and the main target would be the European Union, traditionally America’s closest ally. In this paper we combine disaggregated models to estimate the impact of these tariffs worldwide, and especially on Spain. First, a trade-policy simulation model computes the potential effects worldwide. Then we plug these into the World Input–Output Database, obtaining the inter-sectoral effects of the tariffs on Europe and the rest of the world. Finally, we insert these results into the Spanish inter-regional Input–Output Tables, obtaining final effects for Spanish regions via their inter-sectoral relations with the European Union and the rest of the world. By our calculation, the new US auto tariffs could end up destroying 10,400 jobs in Spain alone and 567,000 jobs worldwide. Moreover, they might have unexpected consequences, affecting, Spanish regions and sectors that just indirectly depend on the automobile industry. Journal: Economic Systems Research Pages: 287-315 Issue: 3 Volume: 33 Year: 2021 Month: 07 X-DOI: 10.1080/09535314.2020.1804330 File-URL: http://hdl.handle.net/10.1080/09535314.2020.1804330 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:33:y:2021:i:3:p:287-315 Template-Type: ReDIF-Article 1.0 Author-Name: Łukasz Lach Author-X-Name-First: Łukasz Author-X-Name-Last: Lach Title: On the plausibility of using linear programming to trace important input–output coefficients in the framework of tolerable limits Abstract: Recent input–output (IO) literature offers original proposals on using linear programming (LP) to make ‘tolerable limits’ approach suitable for measuring the importance of IO coefficients to an economy. In this paper, I focus on one of such influential proposals presented in Tarancón et al. [(2008). A revision of the tolerable limits approach: searching for the important coefficients. Economic Systems Research, 20, 75–95]. In the theoretical part of this paper, I provide exact analytical solutions to the LP problems formulated in Tarancón et al. The main result proves that the classification of IO coefficients with respect to their importance in the sense of the LP-based indicators of Tarancón et al. does not depend on the benchmark welfare measure of interest. This fact, in turn, severely reduces practical applicability of the discussed LP-based approach to tracing important IO coefficients. Journal: Economic Systems Research Pages: 417-426 Issue: 3 Volume: 33 Year: 2021 Month: 07 X-DOI: 10.1080/09535314.2021.1919603 File-URL: http://hdl.handle.net/10.1080/09535314.2021.1919603 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:33:y:2021:i:3:p:417-426 Template-Type: ReDIF-Article 1.0 Author-Name: Masako Tsujimura Author-X-Name-First: Masako Author-X-Name-Last: Tsujimura Author-Name: Kazusuke Tsujimura Author-X-Name-First: Kazusuke Author-X-Name-Last: Tsujimura Title: Flow-of-funds structure of the U.S. economy 2001–2018 Abstract: Great inventions and substantial productivity growth of the Roaring Twenties brought unprecedented prosperity to the United States. After Black Thursday in the fall of 1929 however, the U.S. economic landscape changed dramatically. To ensure that the bitter experience of the Great Depression does not recur, Wesley Mitchell and Morris Copeland, the architects of flow-of-funds analysis, urged a better understanding of the circulation of funds, the means of payment. The new century has so far brought us many technological innovations and new ways of doing business. The objective of the paper is to find out if and how well the funds have been flowing in the U.S. economy over the past two decades, using the flow-of-funds matrix (payer-payee matrix) proposed by Tsujimura and Tsujimura ([2018]. A flow of funds analysis of the U.S. quantitative easing. Economic Systems Research, 30(2), 137–177. https://doi.org/10.1080/09535314.2018.1443908). The industrial revolution of the new century does not seem to have enough momentum circulating funds, the lifeblood of the economy. Journal: Economic Systems Research Pages: 385-416 Issue: 3 Volume: 33 Year: 2021 Month: 07 X-DOI: 10.1080/09535314.2020.1795629 File-URL: http://hdl.handle.net/10.1080/09535314.2020.1795629 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:33:y:2021:i:3:p:385-416 Template-Type: ReDIF-Article 1.0 Author-Name: Juan F. Fung Author-X-Name-First: Juan F. Author-X-Name-Last: Fung Author-Name: Jennifer F. Helgeson Author-X-Name-First: Jennifer F. Author-X-Name-Last: Helgeson Author-Name: David H. Webb Author-X-Name-First: David H. Author-X-Name-Last: Webb Author-Name: Cheyney M. O'Fallon Author-X-Name-First: Cheyney M. Author-X-Name-Last: O'Fallon Author-Name: Harvey Cutler Author-X-Name-First: Harvey Author-X-Name-Last: Cutler Title: Does resilience yield dividends? Co-benefits of investing in increased resilience in Cedar Rapids Abstract: Cedar Rapids, IA, offers a unique case study in planning for increased resilience. In 2008, Cedar Rapids experienced severe flooding. Rather than simply rebuilding, the city of Cedar Rapids began to invest in a resilient flood control system and in the revitalization of its Downtown neighborhood. This paper develops a Computable General Equilibrium (CGE) model for the regional economy of Cedar Rapids to quantify ‘resilience dividends’: net co-benefits of investing in increased resilience. A resilience dividend includes benefits to the community even if another disaster does not occur. We build a CGE model of Cedar Rapids at two different time periods: one in 2007, before the flooding, and one in 2015, after the flooding and initial investment in resilience. We show that a positive economic shock to the economy results in larger co-benefits for key economic indicators in 2015 than in 2007. Our approach illustrates how co-benefits are distributed throughout the economy. Journal: Economic Systems Research Pages: 336-362 Issue: 3 Volume: 33 Year: 2021 Month: 07 X-DOI: 10.1080/09535314.2020.1798359 File-URL: http://hdl.handle.net/10.1080/09535314.2020.1798359 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:33:y:2021:i:3:p:336-362 Template-Type: ReDIF-Article 1.0 Author-Name: Wilfried Parys Author-X-Name-First: Wilfried Author-X-Name-Last: Parys Title: David Hawkins and the making of the Hawkins-Simon conditions Abstract: The Hawkins-Simon conditions, which are necessary and sufficient for the viability of input–output systems, are described in many encyclopedias, textbooks and papers, but always without historical details about the philosopher David Hawkins. The rich literature on the history of input–output economics has neglected Hawkins, probably because he spent only a few years among the economists. My paper fills this gap. By using the relevant archival material on Hawkins, Simon, and Leontief, I correct and expand some scarce remarks on Hawkins by Simon and Samuelson. I discuss Hawkins’s three remarkable contributions to economics. First, Hawkins’s dynamic input–output model in Econometrica in 1948 scooped Leontief. Second, I show how the correspondence between Hawkins and Simon created their famous joint note in Econometrica in 1949. Third, an overlooked chapter in Hawkins’s 1964 book The Language of Nature discussed the commodity values of commodities, generalizing Marx’s labour values and the Technocrats's energy values. Journal: Economic Systems Research Pages: 363-384 Issue: 3 Volume: 33 Year: 2021 Month: 07 X-DOI: 10.1080/09535314.2020.1794799 File-URL: http://hdl.handle.net/10.1080/09535314.2020.1794799 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:33:y:2021:i:3:p:363-384 Template-Type: ReDIF-Article 1.0 Author-Name: The Editors Title: A GRAS variant solving for minimum information loss: An erratum Journal: Economic Systems Research Pages: 427-427 Issue: 3 Volume: 33 Year: 2021 Month: 07 X-DOI: 10.1080/09535314.2021.1897780 File-URL: http://hdl.handle.net/10.1080/09535314.2021.1897780 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:33:y:2021:i:3:p:427-427 Template-Type: ReDIF-Article 1.0 Author-Name: Bartlomiej Rokicki Author-X-Name-First: Bartlomiej Author-X-Name-Last: Rokicki Author-Name: Oliver Fritz Author-X-Name-First: Oliver Author-X-Name-Last: Fritz Author-Name: Jonathan M. Horridge Author-X-Name-First: Jonathan M. Author-X-Name-Last: Horridge Author-Name: Geoffrey J. D. Hewings Author-X-Name-First: Geoffrey J. D. Author-X-Name-Last: Hewings Title: Survey-based versus algorithm-based multi-regional input–output tables within the CGE framework – the case of Austria Abstract: Spatial CGE models rely on detailed multiregional input–output (MRIO) tables. This paper compares two different approaches to compiling MRIO tables for Austria – an algorithm-based approach that regionalizes national input–output tables (IOT) and generates trade estimates using a predefined set of regional variables (i.e. Horridge’s algorithm), and a hybrid approach that uses as much regional and interregional data as possible. We investigate whether we observe differences in CGE simulation results that use them. Results from an aggregate simulation are surprisingly similar. So the algorithmic approach is, in fact, effective in making an MRIO from a national IOT. But noticeable differences appear at the sectoral level. They seem mainly due to differences in calibration rather than in regionalization. Journal: Economic Systems Research Pages: 470-491 Issue: 4 Volume: 33 Year: 2021 Month: 10 X-DOI: 10.1080/09535314.2020.1839385 File-URL: http://hdl.handle.net/10.1080/09535314.2020.1839385 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:33:y:2021:i:4:p:470-491 Template-Type: ReDIF-Article 1.0 Author-Name: Jorge A. Garcia-Hernandez Author-X-Name-First: Jorge A. Author-X-Name-Last: Garcia-Hernandez Author-Name: Roy Brouwer Author-X-Name-First: Roy Author-X-Name-Last: Brouwer Title: A multiregional input–output optimization model to assess impacts of water supply disruptions under climate change on the Great Lakes economy Abstract: This paper presents a water-restricted multi-regional input–output model to evaluate the economic impacts of water supply reductions in the Canadian Great Lakes Basin (GLB), one of the largest freshwater reservoirs in the world. The proposed model, first of its kind applied to the GLB, aims to minimize the impact of water supply disruptions on the GLB-economy, measured by the loss of GDP. A new flexible economic optimization procedure is introduced, capable of imposing resource constraints and ensuring minimal supply levels for intermediate and final consumption at the same time. The model accounts for inter-regional trade between different lake regions. The impacts of two climate change scenarios on water security and the economy are investigated, with and without additional food and energy security restrictions. The proposed economic optimization model holds promise as a new tool for resource-restricted Input–Output analyses. Journal: Economic Systems Research Pages: 509-535 Issue: 4 Volume: 33 Year: 2021 Month: 10 X-DOI: 10.1080/09535314.2020.1805414 File-URL: http://hdl.handle.net/10.1080/09535314.2020.1805414 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:33:y:2021:i:4:p:509-535 Template-Type: ReDIF-Article 1.0 Author-Name: Tobias Emonts-Holley Author-X-Name-First: Tobias Author-X-Name-Last: Emonts-Holley Author-Name: Andrew Ross Author-X-Name-First: Andrew Author-X-Name-Last: Ross Author-Name: Kim Swales Author-X-Name-First: Kim Author-X-Name-Last: Swales Title: Estimating induced effects in IO impact analysis: variation in the methods for calculating the Type II Leontief multipliers Abstract: Type II input–output (IO) multipliers are frequently used for impact analysis. Unfortunately, there is no standard way to calculate these. The fundamental issue is that these multiplier methods endogenise household consumption but all have drawbacks because the IO accounts are missing key information required to consistently link household income and consumption to domestic economic activity. Using compatible regional and national data sets, we evaluate the values for various IO Type II multipliers to a benchmark value calculated with the aid of social accounting matrix data. The results suggest that the variation in Type II IO multiplier values generated by these alternative methods is an empirically non-trivial issue. Journal: Economic Systems Research Pages: 429-445 Issue: 4 Volume: 33 Year: 2021 Month: 10 X-DOI: 10.1080/09535314.2020.1837741 File-URL: http://hdl.handle.net/10.1080/09535314.2020.1837741 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:33:y:2021:i:4:p:429-445 Template-Type: ReDIF-Article 1.0 Author-Name: Cristian Mardones Author-X-Name-First: Cristian Author-X-Name-Last: Mardones Author-Name: Claudio Brevis Author-X-Name-First: Claudio Author-X-Name-Last: Brevis Title: Constructing a SAMEA to analyze energy and environmental policies in Chile Abstract: In this study, a social accounting matrix with environmental accounts (SAMEA) for Chile is built based on the 2016 input-output tables, socioeconomic household survey, expenditure survey, among other information sources. The SAMEA has high disaggregation of the electricity sector that is not currently available in national accounts. Complementary information on the operating costs of different electricity subsectors (thermoelectric, solar, wind, hydro, and biomass) from national and international studies are obtained. Then, intersectoral indicators, accounting multipliers, and simulations of shocks (subsidy on the non-conventional renewable energy subsectors and environmental taxes) are calculated. The main findings of the study show that each electricity subsector has different production technology and emission intensity. In consequence, energy and environmental policies simulated with intersectoral models that do not disaggregate the electricity sector would produce significant biases in the results. Journal: Economic Systems Research Pages: 576-602 Issue: 4 Volume: 33 Year: 2021 Month: 10 X-DOI: 10.1080/09535314.2020.1839386 File-URL: http://hdl.handle.net/10.1080/09535314.2020.1839386 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:33:y:2021:i:4:p:576-602 Template-Type: ReDIF-Article 1.0 Author-Name: Andrea Bonfiglio Author-X-Name-First: Andrea Author-X-Name-Last: Bonfiglio Author-Name: Silvia Coderoni Author-X-Name-First: Silvia Author-X-Name-Last: Coderoni Author-Name: Roberto Esposti Author-X-Name-First: Roberto Author-X-Name-Last: Esposti Author-Name: Edoardo Baldoni Author-X-Name-First: Edoardo Author-X-Name-Last: Baldoni Title: The role of rurality in determining the economy-wide impacts of a natural disaster Abstract: Rural areas may be highly vulnerable to natural disasters because of their lower economic diversification and a higher incidence of sectors that may suffer from a larger impact produced by these adverse events. In addition, because of their trade dependence, local effects can be transmitted to neighbouring regions more diffusely so amplifying total impacts. This paper aims to quantify the economy-wide impacts generated by the earthquake sequence that mostly hit a markedly rural area of Central Italy in 2016–2017. To this purpose, a non-linear programming model based on a multi-regional IO table with a mixed territorial scale is adopted. Results indicate that some negative effects are transmitted outside the seismic area and a few positive effects are also produced. Moreover, they confirm that rural areas are more vulnerable to disasters and that the effects of disasters in these areas are more likely to be transmitted to the neighbouring space. Journal: Economic Systems Research Pages: 446-469 Issue: 4 Volume: 33 Year: 2021 Month: 10 X-DOI: 10.1080/09535314.2020.1814206 File-URL: http://hdl.handle.net/10.1080/09535314.2020.1814206 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:33:y:2021:i:4:p:446-469 Template-Type: ReDIF-Article 1.0 Author-Name: José Firmino de Sousa Filho Author-X-Name-First: José Firmino de Author-X-Name-Last: Sousa Filho Author-Name: Gervásio Ferreira dos Santos Author-X-Name-First: Gervásio Ferreira dos Author-X-Name-Last: Santos Author-Name: Luiz Carlos de Santana Ribeiro Author-X-Name-First: Luiz Carlos Author-X-Name-Last: de Santana Ribeiro Title: Structural changes in the Brazilian economy 1990–2015 Abstract: This paper analyses the structural changes in the Brazilian economy from 1990 to 2015 by applying structural decomposition analysis (SDA). The production structure of emerging economies is an important field of research because it enables the assessment of sectoral policies and technological progress to support sustained economic growth in the long-term. The investigation described here was conducted using input–output matrices for a short and long-term analysis which enabled us to verify the importance of twelve aggregate sectors regarding changes in production, final demand and technological coefficients. This topic could be used for such analyses in any other country. The results indicate that the production structure of Brazilian economy remains fragile and dependent on demand shocks for its growth. Furthermore, manufacturing industry remains the major sector capable of promoting structural changes in production. Journal: Economic Systems Research Pages: 555-575 Issue: 4 Volume: 33 Year: 2021 Month: 10 X-DOI: 10.1080/09535314.2020.1802234 File-URL: http://hdl.handle.net/10.1080/09535314.2020.1802234 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:33:y:2021:i:4:p:555-575 Template-Type: ReDIF-Article 1.0 Author-Name: Ángela García-Alaminos Author-X-Name-First: Ángela Author-X-Name-Last: García-Alaminos Author-Name: Mateo Ortiz Author-X-Name-First: Mateo Author-X-Name-Last: Ortiz Author-Name: Guadalupe Arce Author-X-Name-First: Guadalupe Author-X-Name-Last: Arce Author-Name: Jorge Zafrilla Author-X-Name-First: Jorge Author-X-Name-Last: Zafrilla Title: Reassembling social defragmented responsibilities: the indecent labour footprint of US multinationals overseas Abstract: Multinational corporations (MNEs) have been at the forefront of the geographical disintegration of production chains in search of lower salaries, among other reasons, which led to a global race to the bottom in labour standards. Therefore, significant amounts of indecent work are currently embodied in MNEs’ global value chains, compromising not only the brands’ corporative image but also the achievement of the Sustainable Development Goals. In this work, we shed light on this matter by estimating the indecent-work-conditions related impacts linked to the foreign activities of MNEs from the United States. Using a socially extended MRIO model that integrates three social indicators (forced labour, fatal and nonfatal occupational injuries), we found that these activities show increasing trends between 2009 and 2013 on indecent labour, contributing with 1.1%–1.3% of the global cases. United States affiliates located in India, China and Brazil, show the highest ratios per unit of value-added. Journal: Economic Systems Research Pages: 536-554 Issue: 4 Volume: 33 Year: 2021 Month: 10 X-DOI: 10.1080/09535314.2020.1827224 File-URL: http://hdl.handle.net/10.1080/09535314.2020.1827224 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:33:y:2021:i:4:p:536-554 Template-Type: ReDIF-Article 1.0 Author-Name: Maria Llop Author-X-Name-First: Maria Author-X-Name-Last: Llop Title: Defining prices in an inter-regional SAM system Abstract: The literature of inter-regional social accounting matrices (SAM) focuses on quantity-oriented models that determine the transmission of income impacts. This paper develops a price version to identify the channels of price transmission at the inter-regional (or inter-country) level. The method proposed divides the total multiplier effects into intra-regional price multipliers (i.e. the cost impacts within a region), open loop inter-regional price multipliers (i.e. the cost impacts from one region on another by quantifying all the within-region impacts), and closed loop inter-regional price multipliers (i.e. the circular cost impacts transiting through the accounts in the other region and returning to the starting region). In addition, the intra-regional multipliers are divided into the intra-account, the inter-account and the cross-account (circular) effects. The empirical application, which uses a bi-regional SAM that distinguishes the United States (USA) and China (CHN), highlights the importance of the within-region interdependences for explaining price impacts. Journal: Economic Systems Research Pages: 492-508 Issue: 4 Volume: 33 Year: 2021 Month: 10 X-DOI: 10.1080/09535314.2020.1804331 File-URL: http://hdl.handle.net/10.1080/09535314.2020.1804331 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:33:y:2021:i:4:p:492-508 Template-Type: ReDIF-Article 1.0 Author-Name: Óscar Dejuán Author-X-Name-First: Óscar Author-X-Name-Last: Dejuán Author-Name: Ferran Portella-Carbó Author-X-Name-First: Ferran Author-X-Name-Last: Portella-Carbó Author-Name: Mateo Ortiz Author-X-Name-First: Mateo Author-X-Name-Last: Ortiz Title: Economic and environmental impacts of decarbonisation through a hybrid MRIO multiplier-accelerator model Abstract: This paper analyses the impacts of decarbonisation in three energy-intensive sectors/institutions (electricity generation, road transport, and household consumption) on four economic and environmental variables (value added, employment, energy consumption, and emissions). In our basic scenario, the EU is supposed to complete the decarbonisation of the selected sectors in 30 years, whereas in the rest of the world these sectors will be 30% decarbonised. We hypothesise that emissions and employment will fall once renewable sources of energy replace fossil fuels. Yet, in the meanwhile, massive investments are needed to build the required infrastructure. To compute the full impact, we apply a multiplier-accelerator model to a global multiregional hybrid input–output table derived from EXIOBASE3. In the EU, such a decarbonisation reduces yearly energy consumption, CO2 emissions, and employment by 22%, 19%, and 4%, respectively. Thus, additional measures are necessary to avoid global warming and absorb unemployment. Journal: Economic Systems Research Pages: 1-21 Issue: 1 Volume: 34 Year: 2022 Month: 01 X-DOI: 10.1080/09535314.2020.1848808 File-URL: http://hdl.handle.net/10.1080/09535314.2020.1848808 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:34:y:2022:i:1:p:1-21 Template-Type: ReDIF-Article 1.0 Author-Name: Ana-Isabel Guerra Author-X-Name-First: Ana-Isabel Author-X-Name-Last: Guerra Author-Name: Laura Varela-Candamio Author-X-Name-First: Laura Author-X-Name-Last: Varela-Candamio Author-Name: Jesús López-Rodríguez Author-X-Name-First: Jesús Author-X-Name-Last: López-Rodríguez Title: Tax reforms in Spain: efficiency levels and distributional patterns Abstract: This paper approximates the efficiency levels of the most relevant tax categories and their distributional patterns for a European country considering Spain as an illustrative example. This is done computing the ‘marginal’ excess burden of these taxes, taking into account the structure of the Spanish tax system before and after the major tax reforms undertaken since 2010. In doing so we use a static applied general equilibrium model, which features heterogeneous households classified according to their taxable income. In addition, and in identical terms, another alternative tax reform is evaluated: a flat value-added tax system and a reduction in employers’ social security contributions. Our results indicate that the alternative tax reform would have slightly improved the degree of efficiency of these taxes while implying a lower negative impact on aggregate income. Regarding distributive effects, we do not find significant differences between the actual and the alternative tax policies. Journal: Economic Systems Research Pages: 41-68 Issue: 1 Volume: 34 Year: 2022 Month: 01 X-DOI: 10.1080/09535314.2020.1848806 File-URL: http://hdl.handle.net/10.1080/09535314.2020.1848806 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:34:y:2022:i:1:p:41-68 Template-Type: ReDIF-Article 1.0 Author-Name: Sabina Szymczak Author-X-Name-First: Sabina Author-X-Name-Last: Szymczak Author-Name: Joanna Wolszczak-Derlacz Author-X-Name-First: Joanna Author-X-Name-Last: Wolszczak-Derlacz Title: Global value chains and labour markets – simultaneous analysis of wages and employment Abstract: This study examines the overall effect of global value chains (GVCs) on wages and labour demand. It exploits the World Input–Output Database to measure GVC involvement via recently developed participation indices (using both backward and forward linkages) and the relative GVC position using three-stage least squares regression. We find that the relative GVC position is negatively correlated with wages and employment and that the GVC participation effect depends on whether backward or forward linkages are considered. Moreover, we find heterogeneity across both countries (middle- vs high-income) and sectors (manufacturing versus services). Notably, the effect of GVC involvement on the labour market differs from that produced by traditional domestic trade. Journal: Economic Systems Research Pages: 69-96 Issue: 1 Volume: 34 Year: 2022 Month: 01 X-DOI: 10.1080/09535314.2021.1982678 File-URL: http://hdl.handle.net/10.1080/09535314.2021.1982678 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:34:y:2022:i:1:p:69-96 Template-Type: ReDIF-Article 1.0 Author-Name: Ignacio Cazcarro Author-X-Name-First: Ignacio Author-X-Name-Last: Cazcarro Author-Name: Antonio F. Amores Author-X-Name-First: Antonio F. Author-X-Name-Last: Amores Author-Name: Inaki Arto Author-X-Name-First: Inaki Author-X-Name-Last: Arto Author-Name: Kurt Kratena Author-X-Name-First: Kurt Author-X-Name-Last: Kratena Title: Linking multisectoral economic models and consumption surveys for the European Union Abstract: Multisectoral models usually have a single representative household. However, more diversity of household types is needed to analyse the effects of multiple phenomena (i.e. ageing, gender inequality, distributional income impact, etc.). Household consumption surveys’ microdata is a rich data source for these types of analysis. However, feeding multisectoral models with this type of information is not simple and recent studies show how even slightly inaccurate procedures might result in significantly biased results. This paper presents the full procedure for feeding household consumption microdata into macroeconomic models and for the first time provides in a systematic way an estimation of the bridge matrices needed to link European Union Household Budget Surveys’ microdata with the most popular multi-regional input–output frameworks (e.g. Eurostat, WIOD, EORA, OECD). Journal: Economic Systems Research Pages: 22-40 Issue: 1 Volume: 34 Year: 2022 Month: 01 X-DOI: 10.1080/09535314.2020.1856044 File-URL: http://hdl.handle.net/10.1080/09535314.2020.1856044 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:34:y:2022:i:1:p:22-40 Template-Type: ReDIF-Article 1.0 Author-Name: Radomír Mach Author-X-Name-First: Radomír Author-X-Name-Last: Mach Author-Name: Milan Ščasný Author-X-Name-First: Milan Author-X-Name-Last: Ščasný Author-Name: Jan Weinzettel Author-X-Name-First: Jan Author-X-Name-Last: Weinzettel Title: The role of allocation of retail trade margins across household segments on their carbon footprint calculation Abstract: The homogeneity assumption, inherent to input–output (IO) analysis, implies that every euro spent within one product group is assigned the same environmental burden. We address this assumption applied to price conversion of household expenditures from purchasers’ to basic prices when the carbon footprint of consumption is calculated for specific household segments by linking the IO table and micro-level household consumption data. We perform a sensitivity analysis of the different allocations of the retail trade margin of two consumption groups (Food and Goods) across household expenditure deciles. While a differently allocated retail trade margin influences the carbon footprint of household segments, it does not challenge the general finding that households with higher expenditures are responsible for higher footprints. This finding holds also for different emission intensities of retail trade margins. Journal: Economic Systems Research Pages: 97-110 Issue: 1 Volume: 34 Year: 2022 Month: 01 X-DOI: 10.1080/09535314.2020.1855418 File-URL: http://hdl.handle.net/10.1080/09535314.2020.1855418 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:34:y:2022:i:1:p:97-110 Template-Type: ReDIF-Article 1.0 Author-Name: Shohei Tokito Author-X-Name-First: Shohei Author-X-Name-Last: Tokito Author-Name: Shigemi Kagawa Author-X-Name-First: Shigemi Author-X-Name-Last: Kagawa Author-Name: Tesshu Hanaka Author-X-Name-First: Tesshu Author-X-Name-Last: Hanaka Title: Hypothetical extraction, betweenness centrality, and supply chain complexity Abstract: Two frameworks, hypothetical extraction and betweenness centrality analysis, can be used to identify environmentally important sectors in complex supply chains. This study derives an analytic expression for the relationship between hypothetical extraction and betweenness centrality analysis. Second, using the Eora and WIOD, this study analyzes the degree of difference in ‘important’ sectors identified by hypothetical extraction and betweenness centrality analysis. While the results obtained by rank correlation yield similarities, both methods have advantages. This study demonstrates that estimating betweenness centrality is meaningful and less computationally expensive, and can help us to understand the structural positions in the global supply chain network. The hypothetical extraction indicators can be easily computed using the betweenness centrality indicators’ mathematical relationship. We conclude that the implementation of effective CO2-reduction polices through greener global supply chain engagement center around two key sectors, chemical and metal products from China, and their higher betweenness centrality should be strengthened. Journal: Economic Systems Research Pages: 111-128 Issue: 1 Volume: 34 Year: 2022 Month: 01 X-DOI: 10.1080/09535314.2020.1848807 File-URL: http://hdl.handle.net/10.1080/09535314.2020.1848807 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:34:y:2022:i:1:p:111-128 Template-Type: ReDIF-Article 1.0 Author-Name: Tesshu Hanaka Author-X-Name-First: Tesshu Author-X-Name-Last: Hanaka Author-Name: Keiichiro Kanemoto Author-X-Name-First: Keiichiro Author-X-Name-Last: Kanemoto Author-Name: Shigemi Kagawa Author-X-Name-First: Shigemi Author-X-Name-Last: Kagawa Title: Multi-perspective structural analysis of supply chain networks Abstract: Determining the structural positions and characteristics of multi-role sectors is critical for understanding supply chain networks. Thus, in this study, we developed an attribution analysis framework to assess the structure of sectors with multiple roles in a supply chain. Subsequently, we applied the framework in a case study, where the top-ranking Japanese sectors were identified for production-oriented, betweenness-oriented, and consumption-oriented carbon dioxide emission scores. Additionally, these attribution indicators were utilized to identify/visualize the structural positions of sectors. Using company-level data, we also evaluated the structural positions of Japanese companies in relation to their carbon disclosure project (CDP) reporting practices. The results demonstrate that a company's role in the supply chain is unlikely to be related to CDP reporting. Journal: Economic Systems Research Pages: 199-214 Issue: 2 Volume: 34 Year: 2022 Month: 04 X-DOI: 10.1080/09535314.2021.1883552 File-URL: http://hdl.handle.net/10.1080/09535314.2021.1883552 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:34:y:2022:i:2:p:199-214 Template-Type: ReDIF-Article 1.0 Author-Name: Bernhard Michel Author-X-Name-First: Bernhard Author-X-Name-Last: Michel Author-Name: Caroline Hambÿe Author-X-Name-First: Caroline Author-X-Name-Last: Hambÿe Title: Export-sustained employment: accounting for exporter-heterogeneity in input–output tables Abstract: Exports matter for domestic employment in both export-producing firms and upstream suppliers. Their total effect can be captured through an input–output-based indicator of export-sustained employment. However, as industry classifications used in regular input–output tables are based on product similarity, they fail to account for within-industry technological heterogeneity between exporters and other firms, which may lead to a bias in results for export-sustained employment. In this paper, we describe the breakdown of manufacturing industries into export-oriented and domestic-oriented firms in Belgian input–output tables and employment data based on detailed firm-level data for industry totals and input–output structures. Based on the resulting export-heterogeneous tables, we find that 585,000 jobs or 13% of economy-wide employment in Belgium is sustained by manufacturing exports. This is overestimated by 4% with regular tables. Moreover, we identify who contributes to and who gains from exports for groups of firms rather than aggregated industries. Journal: Economic Systems Research Pages: 215-233 Issue: 2 Volume: 34 Year: 2022 Month: 04 X-DOI: 10.1080/09535314.2020.1869701 File-URL: http://hdl.handle.net/10.1080/09535314.2020.1869701 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:34:y:2022:i:2:p:215-233 Template-Type: ReDIF-Article 1.0 Author-Name: Claudia V. Montanía Author-X-Name-First: Claudia V. Author-X-Name-Last: Montanía Author-Name: Sandy Dall’erba Author-X-Name-First: Sandy Author-X-Name-Last: Dall’erba Title: Multi-dynamic interregional input-output shift-share: model, theory and application Abstract: Shift-share decomposition has been extensively used to identify the key drivers of sectoral and regional economic growth. Traditionally, shift-share does not pay attention to any form of interregional externalities and the rare exceptions define them based on geographical proximity only. However, given the increasing role of global value chains in economic growth, this paper introduces the Multi-dynamic interregional input-output shift-share decomposition in order to capture the dynamic intersectoral relationships between a spatial unit and any other unit it trades with. The methodology is illustrated on 35 productive sectors of 15 European Union countries over 1995–2006. The results show that the most important driver of output growth in these countries are their sectoral linkages with other European countries, followed by the domestic sectoral linkages. Journal: Economic Systems Research Pages: 234-251 Issue: 2 Volume: 34 Year: 2022 Month: 04 X-DOI: 10.1080/09535314.2020.1867078 File-URL: http://hdl.handle.net/10.1080/09535314.2020.1867078 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:34:y:2022:i:2:p:234-251 Template-Type: ReDIF-Article 1.0 Author-Name: Julio Sánchez Chóliz Author-X-Name-First: Julio Author-X-Name-Last: Sánchez Chóliz Author-Name: Rosa Duarte Author-X-Name-First: Rosa Author-X-Name-Last: Duarte Author-Name: Sofía Jiménez Author-X-Name-First: Sofía Author-X-Name-Last: Jiménez Title: Structural components of income growth: an application to the evolution of the Spanish economy, 1980–2014 Abstract: This paper analyses the structural and technical changes in Spain since the 1980s, using annual input–output tables. Specifically, a differential structural decomposition analysis (SDA) is applied to shifts in value-added, revealing eight different components and allowing the estimation of the impacts of technical change on the process of economic transformation on a sector-by-sector basis. We conclude that growth in the Spanish economy in recent decades was a mix of technological modernization and general economic expansion, although with some heterogeneity among sectors over time. High-technology services played a key role in modernization in the late 1980s and 1990s. In fact, the growth of High-technology, Medium-high-technology, Energy and Construction sectors accelerated through the 2008 crisis. Labour compensation and returns from capital followed different trends both during expansions and recessions, intensifying income inequality in Spain. Journal: Economic Systems Research Pages: 151-166 Issue: 2 Volume: 34 Year: 2022 Month: 04 X-DOI: 10.1080/09535314.2021.1974353 File-URL: http://hdl.handle.net/10.1080/09535314.2021.1974353 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:34:y:2022:i:2:p:151-166 Template-Type: ReDIF-Article 1.0 Author-Name: Hong-Dian Jiang Author-X-Name-First: Hong-Dian Author-X-Name-Last: Jiang Author-Name: Mei-Mei Xue Author-X-Name-First: Mei-Mei Author-X-Name-Last: Xue Author-Name: Kang-Yin Dong Author-X-Name-First: Kang-Yin Author-X-Name-Last: Dong Author-Name: Qiao-Mei Liang Author-X-Name-First: Qiao-Mei Author-X-Name-Last: Liang Title: How will natural gas market reforms affect carbon marginal abatement costs? Evidence from China Abstract: Having recognised the significant role of natural gas in reducing carbon abatement costs, China is rapidly promoting its growth. However, obvious distortions exist in China’s natural gas market, and it is unclear how these may affect abatement policies going forward. Therefore, to assess the effects of energy market distortions on the carbon marginal abatement costs (MACs) in China, this study proposes a computable general equilibrium model for China’s natural gas sector, which considers the monopoly market structure, price regulation, and import restrictions. Results show that deregulation of gas prices will lead to an effective decrease in China’s MACs. China’s MACs are insensitive to liberalisation of the market monopoly or gas import restrictions. When all three distortions are fully deregulated, China’s MACs show an obvious upward trend. Finally, this study uses China's carbon trading policies as an example to propose policy implications under different scenarios of natural gas market reform. Journal: Economic Systems Research Pages: 129-150 Issue: 2 Volume: 34 Year: 2022 Month: 04 X-DOI: 10.1080/09535314.2020.1868410 File-URL: http://hdl.handle.net/10.1080/09535314.2020.1868410 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:34:y:2022:i:2:p:129-150 Template-Type: ReDIF-Article 1.0 Author-Name: María T. Álvarez-Martínez Author-X-Name-First: María T. Author-X-Name-Last: Álvarez-Martínez Author-Name: Salvador Barrios Author-X-Name-First: Salvador Author-X-Name-Last: Barrios Author-Name: Diego d'Andria Author-X-Name-First: Diego Author-X-Name-Last: d'Andria Author-Name: Maria Gesualdo Author-X-Name-First: Maria Author-X-Name-Last: Gesualdo Author-Name: Gaetan Nicodeme Author-X-Name-First: Gaetan Author-X-Name-Last: Nicodeme Author-Name: Jonathan Pycroft Author-X-Name-First: Jonathan Author-X-Name-Last: Pycroft Title: How large is the corporate tax base erosion and profit shifting? A general equilibrium approach Abstract: The paper uses the computable general equilibrium model CORTAX to analyse the extent of base erosion and profit shifting (BEPS) in the EU, Japan and the US. Our approach estimates the direct fiscal losses of BEPS and accounts for the second round effects, in particular on the cost of capital and corporate investment. Our central estimates show that the net corporate tax revenue losses in the EU are €36.0 billion per year (7.7% of CIT revenues), €24.0 billion in Japan and €100.8 billion in the US (in both cases representing 10.7% of corporate tax revenues). Our estimates are comparable in size to the global tax revenue losses found using newly reported statistics on foreign affiliates. Our macroeconomic results suggest that eliminating profit shifting would slightly reduce investment and GDP and rise corporate tax revenues, which would positively affect welfare. Journal: Economic Systems Research Pages: 167-198 Issue: 2 Volume: 34 Year: 2022 Month: 04 X-DOI: 10.1080/09535314.2020.1865882 File-URL: http://hdl.handle.net/10.1080/09535314.2020.1865882 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:34:y:2022:i:2:p:167-198 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_1947782_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Jan Weinzettel Author-X-Name-First: Jan Author-X-Name-Last: Weinzettel Title: Aggregation error of the material footprint: the case of the EU Abstract: The material footprint (raw material consumption) was proposed as a basis for monitoring SDGs 8.4 and 12.2. However, there is no institutionalized procedure providing globally consistent national material footprints. The OECD aims to institutionalize the material footprint through the development of one official inter-country input–output (ICIO) database applicable for its calculation. Inherent to input–output analysis is the aggregation error, which may impair the results. Therefore, in the case of the EU I analyze the aggregation error which can be expected if NACE rev2 classification is utilized for this ICIO database, and investigate the most important disaggregations, depending on the desired focus of the results. I conclude that the disaggregation level should reflect the intended purpose of the RME indicators. For their deeper analysis, and determination of strategies for their decrease, I conclude that NACE rev2 classification is inappropriate, and recommend high disaggregation and utilization of hybrid units. Journal: Economic Systems Research Pages: 320-342 Issue: 3 Volume: 34 Year: 2022 Month: 07 X-DOI: 10.1080/09535314.2021.1947782 File-URL: http://hdl.handle.net/10.1080/09535314.2021.1947782 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:34:y:2022:i:3:p:320-342 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_1937953_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Christian Lutz Author-X-Name-First: Christian Author-X-Name-Last: Lutz Author-Name: Maximilian Banning Author-X-Name-First: Maximilian Author-X-Name-Last: Banning Author-Name: Lara Ahmann Author-X-Name-First: Lara Author-X-Name-Last: Ahmann Author-Name: Markus Flaute Author-X-Name-First: Markus Author-X-Name-Last: Flaute Title: Energy efficiency and rebound effects in German industry – evidence from macroeconometric modeling Abstract: Increases in energy efficiency are reduced by the rebound effect. Efficiency gains on the micro level do not lead to proportionate reductions of energy consumption on the macro level. The German energy-economy model PANTA RHEI is applied to better understand the rebound effect. To get more robust estimates micro data from a cost structure survey of the German manufacturing sector was used to derive price elasticities of energy demand. The mesoeconomic rebound effect of an autonomous increase in energy efficiency at the industry level in manufacturing is between 7% in 2021 and 12% in 2030. The macroeconomic rebound effect lies between 12% in 2021 and 18% in 2030. Inclusion of necessary investment and assumptions of higher elasticities of substitution increase the effects. Rebound effects limit the scope of technology-driven efficiency improvements and must be considered in the design of ambitious energy efficiency programs and climate policies. Journal: Economic Systems Research Pages: 253-272 Issue: 3 Volume: 34 Year: 2022 Month: 07 X-DOI: 10.1080/09535314.2021.1937953 File-URL: http://hdl.handle.net/10.1080/09535314.2021.1937953 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:34:y:2022:i:3:p:253-272 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_1926934_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Anton Pichler Author-X-Name-First: Anton Author-X-Name-Last: Pichler Author-Name: J. Doyne Farmer Author-X-Name-First: J. Doyne Author-X-Name-Last: Farmer Title: Simultaneous supply and demand constraints in input–output networks: the case of Covid-19 in Germany, Italy, and Spain Abstract: Natural and anthropogenic disasters frequently affect both the supply and demand sides of an economy. A striking recent example is the Covid-19 pandemic which has created severe disruptions to economic output in most countries. These direct shocks to supply and demand will propagate downstream and upstream through production networks. Given the exogenous shocks, we derive a lower bound on total shock propagation. We find that even in this best case scenario network effects substantially amplify the initial shocks. To obtain more realistic model predictions, we study the propagation of shocks bottom-up by imposing different rationing rules on industries if they are not able to satisfy incoming demand. Our results show that economic impacts depend strongly on the emergence of input bottlenecks, making the rationing assumption a key variable in predicting adverse economic impacts. We further establish that the magnitude of initial shocks and network density heavily influence model predictions. Journal: Economic Systems Research Pages: 273-293 Issue: 3 Volume: 34 Year: 2022 Month: 07 X-DOI: 10.1080/09535314.2021.1926934 File-URL: http://hdl.handle.net/10.1080/09535314.2021.1926934 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:34:y:2022:i:3:p:273-293 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_1971947_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Makiko Tsukui Author-X-Name-First: Makiko Author-X-Name-Last: Tsukui Author-Name: Chen Lin Author-X-Name-First: Chen Author-X-Name-Last: Lin Author-Name: Kaiyan Ji Author-X-Name-First: Kaiyan Author-X-Name-Last: Ji Author-Name: Xiaoliang Lang Author-X-Name-First: Xiaoliang Author-X-Name-Last: Lang Title: The true cost of trade among neighbors: the role of Japanese imports in waste generation in China Abstract: China’s rapid economic development has caused considerable environmental problems in waste generation and treatment. One important reason for this is China’s manufacturing exports to other countries such as Japan, a major trading partner. However, the contribution of such importing countries has not yet been fully explored. This study quantitatively examined how final demand in trade between China and Japan affects both countries’ economies and waste generation. The results show that imports of final consumption goods from China to Japan induced enormous waste generation in China, while the wastes induced in Japan were negligible. Even if final demand exports from China to Japan are significantly economically beneficial to China, the cost to China from addressing the induced waste generation seems too much to make these exports worthwhile. To encourage constructive discussions, improvement of reliability and transparency of waste statistics in China that allows comparison with other countries would be significant. Journal: Economic Systems Research Pages: 343-366 Issue: 3 Volume: 34 Year: 2022 Month: 07 X-DOI: 10.1080/09535314.2021.1971947 File-URL: http://hdl.handle.net/10.1080/09535314.2021.1971947 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:34:y:2022:i:3:p:343-366 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_1974354_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Ning Chang Author-X-Name-First: Ning Author-X-Name-Last: Chang Author-Name: Chaohui Han Author-X-Name-First: Chaohui Author-X-Name-Last: Han Title: Regional CO2 emissions and cross-boundary mitigation potential in China Abstract: This paper presents a new framework for investigating regional CO2 emissions from the perspective of the domestic supply chain, with a combination of linkage analysis and structural decomposition analysis (SDA), which allows for a better understanding of spatial emission distributions and cross-boundary potential for CO2 mitigation. Based on the multi-regional input–output (MRIO) tables of 2007 and 2012, Chinese provinces (cities) are categorised into three groups according to linkage characteristics, among which, Group I is suggested to be given priority in formulating mitigation policies due to their stronger regional CO2 influence characteristics. Moreover, regions in Group I have been more affected by inter-regional trade than other groups with regard to their local CO2 emissions. Therefore, turning Group I into a low-carbon production pattern could help construct greener domestic supply chains. The results emphasise that regional analysis on CO2 emissions should go beyond the local factors, and that regional mitigation polices should consider the position and participation degree of different regions in domestic supply chains. Journal: Economic Systems Research Pages: 367-382 Issue: 3 Volume: 34 Year: 2022 Month: 07 X-DOI: 10.1080/09535314.2021.1974354 File-URL: http://hdl.handle.net/10.1080/09535314.2021.1974354 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:34:y:2022:i:3:p:367-382 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_1964941_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Syeda Tasnia Hasan Author-X-Name-First: Syeda Tasnia Author-X-Name-Last: Hasan Author-Name: Michael O. Wood Author-X-Name-First: Michael O. Author-X-Name-Last: Wood Author-Name: Simron Singh Author-X-Name-First: Simron Author-X-Name-Last: Singh Title: Revealing embedded carbon emissions within the Comprehensive and Progressive Agreement for Trans-Pacific Partnership Abstract: The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), representing approximately USD 13.5 trillion of the global GDP, is one of the largest free-trade agreements in the world. This trade agreement considers many important issues yet fails to address climate change or carbon dioxide (CO2) emissions. CO2 emissions in trade are critical as all CPTPP parties have made significant carbon emissions reduction commitments of between 8-36% through the COP21- Paris Agreement. Herein lies a paradox. This study assesses the amount of embedded CO2 emissions in the CPTPP through an input-output analysis of consumption-based emissions in ten carbon-intensive sectors, under three scenarios. The results reveal that as trade between partners increases, so will CO2 emissions across those sectors. These findings are essential for policymakers who are striving to grow Partnerships (Sustainable Development Goal 17) while seeking to address Climate Action (Sustainable Development Goal 13), which appear to be conflicting goals. Journal: Economic Systems Research Pages: 294-319 Issue: 3 Volume: 34 Year: 2022 Month: 07 X-DOI: 10.1080/09535314.2021.1964941 File-URL: http://hdl.handle.net/10.1080/09535314.2021.1964941 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:34:y:2022:i:3:p:294-319 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_1952404_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Timothé Beaufils Author-X-Name-First: Timothé Author-X-Name-Last: Beaufils Author-Name: Leonie Wenz Author-X-Name-First: Leonie Author-X-Name-Last: Wenz Title: A scenario-based method for projecting multi-regional input–output tables Abstract: Multi-regional input–output (MRIO) data are a powerful tool to analyze complex interdependencies in the international trade and supply network. Their field of application is however limited by the fact that MRIO datasets are only available for past years whereas the structure of the international trade network has been found to change profoundly over time. We here propose the SPIN method, a simple and flexible algorithm that can project MRIO tables into the future based on transparent scenarios of how gross domestic product and trade relations may evolve in that time. By combining well-established input–output techniques, namely the Leontief quantity model and an RAS-type algorithm, our method provides a straightforward mean to convert quantitative scenarios of the world economy into consistent MRIO tables. We illustrate the functioning of the SPIN method by projecting the evolution of the trade network after the 2008 financial crisis under different alternative scenarios of recovery. Journal: Economic Systems Research Pages: 440-468 Issue: 4 Volume: 34 Year: 2022 Month: 10 X-DOI: 10.1080/09535314.2021.1952404 File-URL: http://hdl.handle.net/10.1080/09535314.2021.1952404 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:34:y:2022:i:4:p:440-468 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_1935219_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Timon Bohn Author-X-Name-First: Timon Author-X-Name-Last: Bohn Author-Name: Steven Brakman Author-X-Name-First: Steven Author-X-Name-Last: Brakman Author-Name: Erik Dietzenbacher Author-X-Name-First: Erik Author-X-Name-Last: Dietzenbacher Title: Who’s afraid of Virginia Wu? US employment footprints and self-sufficiency Abstract: Globalization has brought about concerns of domestic job losses due to outsourcing to countries like China. The ‘employment footprint’ concept provides new insights into the implications of trade for employment. Using this approach for the period of 1995–2008, we analyze the relation of US jobs with international trade, particularly with China. Furthermore, we compare the US employment footprint with its labor endowment to assess if the country could be self-sufficient in terms of labor. We find that the US’s consumption increasingly depends on foreign workers. The country ‘consumes’ more labor than is nationally available; thus, self-sufficiency is not possible under realistic assumptions. Moreover, the US has benefited from jobs – especially in services – generated by the world economy. Referring to Albee’s famous play about living in illusions, we use ‘Virginia Wu’ as a Chinese version of ‘Virginia Woolf’ to argue that the perceived threat of China (Virginia Wu) is only an illusion. Journal: Economic Systems Research Pages: 469-490 Issue: 4 Volume: 34 Year: 2022 Month: 10 X-DOI: 10.1080/09535314.2021.1935219 File-URL: http://hdl.handle.net/10.1080/09535314.2021.1935219 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:34:y:2022:i:4:p:469-490 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_1932764_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Heran Zheng Author-X-Name-First: Heran Author-X-Name-Last: Zheng Author-Name: Johannes Többen Author-X-Name-First: Johannes Author-X-Name-Last: Többen Author-Name: Erik Dietzenbacher Author-X-Name-First: Erik Author-X-Name-Last: Dietzenbacher Author-Name: Daniel Moran Author-X-Name-First: Daniel Author-X-Name-Last: Moran Author-Name: Jing Meng Author-X-Name-First: Jing Author-X-Name-Last: Meng Author-Name: Daoping Wang Author-X-Name-First: Daoping Author-X-Name-Last: Wang Author-Name: Dabo Guan Author-X-Name-First: Dabo Author-X-Name-Last: Guan Title: Entropy-based Chinese city-level MRIO table framework Abstract: Cities are pivotal hubs of socioeconomic activities, and consumption in cities contributes to global environmental pressures. Compiling city-level multi-regional input-output (MRIO) tables is challenging due to the scarcity of city-level data. Here we propose an entropy-based framework to construct city-level MRIO tables. We demonstrate the new construction method and present an analysis of the carbon footprint of cities in China's Hebei province. A sensitivity analysis is conducted by introducing a weight reflecting the heterogeneity between city and province data, as an important source of uncertainty is the degree to which cities and provinces have an identical ratio of intermediate demand to total demand. We compare consumption-based emissions generated from the new MRIO to results of the MRIO based on individual city input-output tables. The findings reveal a large discrepancy in consumption-based emissions between the two MRIO tables but this is due to conflicting benchmark data used in the two tables. Journal: Economic Systems Research Pages: 519-544 Issue: 4 Volume: 34 Year: 2022 Month: 10 X-DOI: 10.1080/09535314.2021.1932764 File-URL: http://hdl.handle.net/10.1080/09535314.2021.1932764 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:34:y:2022:i:4:p:519-544 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_1949267_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Rossella Bardazzi Author-X-Name-First: Rossella Author-X-Name-Last: Bardazzi Author-Name: Leonardo Ghezzi Author-X-Name-First: Leonardo Author-X-Name-Last: Ghezzi Title: Large-scale multinational shocks and international trade: a non-zero-sum game Abstract: International trade has improved living standards but has also become a major channel for spreading shocks on a global scale. The increasing relevance of intersectoral linkages and trade in intermediates renewed interest in input–output techniques. This paper enriches the literature on empirical trade models with an input–output/econometric approach including substitution effects and price spillovers. Our model shows that (a) trade elasticities and bilateral shares are not constant in time and differ across sectors and countries; (b) international price changes alter the relative competitiveness between competitors; (c) final demand components such as consumption and investment react to changes in international prices. Large multi-country shocks produce feedback effects in national economies as they adapt by import substitution across exporters, by changing the import content of domestic production and by adjusting final demand. These feedbacks affect the global demand producing an asymmetric non-zero-sum game. Journal: Economic Systems Research Pages: 383-409 Issue: 4 Volume: 34 Year: 2022 Month: 10 X-DOI: 10.1080/09535314.2021.1949267 File-URL: http://hdl.handle.net/10.1080/09535314.2021.1949267 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:34:y:2022:i:4:p:383-409 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_1963684_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Arndt Feuerbacher Author-X-Name-First: Arndt Author-X-Name-Last: Feuerbacher Author-Name: Scott McDonald Author-X-Name-First: Scott Author-X-Name-Last: McDonald Author-Name: Karen Thierfelder Author-X-Name-First: Karen Author-X-Name-Last: Thierfelder Title: Peasant farmers and pandemics: the role of seasonality and labor-leisure trade-off decisions in economy-wide models Abstract: Pandemics attack the primary asset (labor) of peasant households and the rural poor. Peasant households must simultaneously allocate labor between farm and household activities, where the demand for agricultural labor is seasonal, which limits intra-temporal substitution, without perfect foresight. A pandemic reduces the supply of labor, through deaths and morbidity, with the scale of reductions in labor supply depending on the seasons in which a pandemic occurs. The analyses, using a recursive dynamic economy-wide model for Bhutan, demonstrate that outbreaks in high labor demand seasons cause increases in wage rates almost three times as high as for outbreaks in low labor demand seasons. Increases in wage rates induce peasant households to reallocate labor time between farm and household activities through the labor-leisure trade-off mechanism. Such changes in the allocation of labor time are important elements of peasants’ mitigation responses, and can reduce the negative economic implications of a pandemic. Journal: Economic Systems Research Pages: 491-518 Issue: 4 Volume: 34 Year: 2022 Month: 10 X-DOI: 10.1080/09535314.2021.1963684 File-URL: http://hdl.handle.net/10.1080/09535314.2021.1963684 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:34:y:2022:i:4:p:491-518 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_1958764_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Yoshihiro Hashiguchi Author-X-Name-First: Yoshihiro Author-X-Name-Last: Hashiguchi Author-Name: Norihiko Yamano Author-X-Name-First: Norihiko Author-X-Name-Last: Yamano Author-Name: Colin Webb Author-X-Name-First: Colin Author-X-Name-Last: Webb Title: How thick is your armour? Measuring economic resilience to shocks in global production networks Abstract: When economic shocks occur, whether at home or abroad, economic agents are expected to react to reduce the negative impact or amplify the positive effects. The ability of a country to contain economic losses can be defined as the resilience to economic shocks. Using the OECD’s annual Inter-Country Input–Output (ICIO) tables from 1995 to 2011, this paper investigates the relationship between changes in final demand and production structures for 61 economies. We found that, during economic downturns, countries that are able to prop up the economy through the domestic service sectors instead of domestic goods and foreign sectors are more resilient to negative shocks. Therefore, understanding the substitutability between goods and service sectors and between domestic and foreign sectors is crucial for gauging the potential risk to a country’s domestic economy from shocks abroad – whether economic, environmental, health-related or political. Journal: Economic Systems Research Pages: 410-439 Issue: 4 Volume: 34 Year: 2022 Month: 10 X-DOI: 10.1080/09535314.2021.1958764 File-URL: http://hdl.handle.net/10.1080/09535314.2021.1958764 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:34:y:2022:i:4:p:410-439 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_2106418_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Anwar Shaikh Author-X-Name-First: Anwar Author-X-Name-Last: Shaikh Author-Name: Luiza Nassif-Pires Author-X-Name-First: Luiza Author-X-Name-Last: Nassif-Pires Author-Name: José Alejandro Coronado Author-X-Name-First: José Alejandro Author-X-Name-Last: Coronado Title: A new empirical contribution to an old theoretical puzzle: what input–output matrix properties tells us about equilibrium prices and quantities Abstract: Eigenvalues of input-output matrices have significant implications for the structures of equilibrium prices and quantities. According to the Bródy Conjecture (BC), all subdominant eigenvalues of matrix would approach zero as matrix size approached infinity. Thus, any given initial quantity or price vector would converge to the corresponding equilibrium one in a single step. This paper adds significant empirical evidence to this theoretical discussion. We create a database of 307 different sizes matrices ranging over 30 years. Contrary to BC, we find that: the coefficient of variation and the subdominant eigenvalue moduli rise with matrix size; there’s a universal rank-size curve of eigenvalue moduli, but it is smooth and convex rather than L-shaped; the distribution of eigenvalue moduli is best fit by a Weibull probability distribution; the Weibull quantile function in turn yields a power law for eigenvalue moduli which is a better fit than a previously proposed exponential function. Journal: Economic Systems Research Pages: 118-135 Issue: 1 Volume: 35 Year: 2023 Month: 01 X-DOI: 10.1080/09535314.2022.2106418 File-URL: http://hdl.handle.net/10.1080/09535314.2022.2106418 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:35:y:2023:i:1:p:118-135 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_2091978_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Vladimír Holý Author-X-Name-First: Vladimír Author-X-Name-Last: Holý Author-Name: Karel Šafr Author-X-Name-First: Karel Author-X-Name-Last: Šafr Title: Disaggregating input–output tables by the multidimensional RAS method: a case study of the Czech Republic Abstract: The RAS method is an iterative procedure that bi-proportionally scales an input–output table to be consistent with given row and column sums. It can be used to disaggregate an annual national table to more detailed tables, such as regional, quarterly, and domestic/imported tables. However, the regular two-dimensional RAS method does not ensure the consistency of the disaggregated tables with the original table. For this problem, we use the multidimensional RAS method, which besides input and output totals, also ensures regional, quarterly, and domestic/imported totals. Our analysis of Czech industries shows that the multidimensional RAS method increases the accuracy of table estimation as well as the accuracy of the Leontief inverse, the quarterly value added, and (to some degree) the regional Isard's model. We also rigorously demonstrate its relation to the cross-entropy model. Journal: Economic Systems Research Pages: 95-117 Issue: 1 Volume: 35 Year: 2023 Month: 01 X-DOI: 10.1080/09535314.2022.2091978 File-URL: http://hdl.handle.net/10.1080/09535314.2022.2091978 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:35:y:2023:i:1:p:95-117 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_1971629_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Markus Simbürger Author-X-Name-First: Markus Author-X-Name-Last: Simbürger Title: Filter methods for MRIO tables: an evaluation Abstract: Researchers who deal with network analysis based on multi-regional input–output (MRIO) tables cannot avoid the intensively discussed issue of filtering, which means identification of the most important and significant trade connections. The question of what is an appropriate filter method remains. This paper expands the existing discussion and brings new insight based on the evaluation of existing filter methods for MRIO tables. Six filter methods from the prevailing literature are identified as relevant and tested on the published MRIO tables: EORA26 and EXIOBASE. The results are verified by a case study. The evaluation shows that the Tolerable Limit approach and filter based on the Weaver–Thomas Index are the most restrictive. The Leontief filter and the filter based on holistic accuracy can be partially recommended. The filter on absolute trade values and average transactions can be recommended as ‘good’ methods. Journal: Economic Systems Research Pages: 136-155 Issue: 1 Volume: 35 Year: 2023 Month: 01 X-DOI: 10.1080/09535314.2021.1971629 File-URL: http://hdl.handle.net/10.1080/09535314.2021.1971629 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:35:y:2023:i:1:p:136-155 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_2068407_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Ryo Itoh Author-X-Name-First: Ryo Author-X-Name-Last: Itoh Author-Name: Kiyoshi Yonemoto Author-X-Name-First: Kiyoshi Author-X-Name-Last: Yonemoto Title: An interregional input–output analysis with the Eaton–Kortum model Abstract: This study proposes a multi-regional input–output (I–O) model obtained from comparative statics analysis and a linear approximation of Eaton and Kortum's (2002). [Technology, geography, and trade. Econometrica, 70(5), 1741–1779. https://doi.org/10.1111/ecta.2002.70.issue-5] general equilibrium trade model. The derived reduced form, which represents the effect of a final demand shock, is equivalent to the Leontief inverse, which means that our model is a straightforward extension of the conventional I–O framework. In addition, supply-side shocks, such as a decrease in transport costs, and the corresponding welfare gains are also calculated without setting any structural parameters. The linear reduced forms also enable us to decompose the welfare gains into various ripple channels, such as by sector, region, or the time that the gain arrives. A Japanese multi-regional I–O table is used as a numerical example to derive the effect of a reduction in transport costs (for the links around the northern region). The results indicate that more than half of the welfare gains in the southwest region are delivered through indirect channels, and their time to arrival is more than twice of that in the northern region, which is close to the shock. Journal: Economic Systems Research Pages: 49-74 Issue: 1 Volume: 35 Year: 2023 Month: 01 X-DOI: 10.1080/09535314.2022.2068407 File-URL: http://hdl.handle.net/10.1080/09535314.2022.2068407 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:35:y:2023:i:1:p:49-74 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_2045258_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Davit Stepanyan Author-X-Name-First: Davit Author-X-Name-Last: Stepanyan Author-Name: Georg Zimmermann Author-X-Name-First: Georg Author-X-Name-Last: Zimmermann Author-Name: Harald Grethe Author-X-Name-First: Harald Author-X-Name-Last: Grethe Title: Stochastic simulation with informed rotations of Gaussian quadratures Abstract: Given the fast growth of available computational capacities and the increasing complexity of simulation models addressing agro-environmental issues, uncertainty analysis using stochastic techniques has become a standard modeling practice. However, conventional uncertainty/sensitivity analysis methods are either computationally demanding (Monte Carlo-based methods) or produce results with varying quality (Gaussian quadratures). In this article, we present a computationally inexpensive and reliable uncertainty analysis method for simulation models called informed rotations of Gaussian quadratures (IRGQ). We also provide an R script that generates IRGQ points based on the required input data. The results demonstrate that this method is able to produce approximations that are close to the estimated benchmarks at low computational costs. The method is tested in three different simulation models using different input data in order to demonstrate the independence of the proposed method on specific model types and data structures. This is a methodological paper for practitioners rather than theorists. Journal: Economic Systems Research Pages: 30-48 Issue: 1 Volume: 35 Year: 2023 Month: 01 X-DOI: 10.1080/09535314.2022.2045258 File-URL: http://hdl.handle.net/10.1080/09535314.2022.2045258 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:35:y:2023:i:1:p:30-48 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_1990869_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Muhammad Daaniyall Abd Rahman Author-X-Name-First: Muhammad Daaniyall Author-X-Name-Last: Abd Rahman Author-Name: Bart Los Author-X-Name-First: Bart Author-X-Name-Last: Los Author-Name: Anne Owen Author-X-Name-First: Anne Author-X-Name-Last: Owen Author-Name: Manfred Lenzen Author-X-Name-First: Manfred Author-X-Name-Last: Lenzen Title: Multi-level comparisons of input–output tables using cross-entropy indicators Abstract: We introduce a cross-entropy (CE) indicator to quantify the extent to which two input–output tables or two tables with results based on input–output analysis differ from each other. Our work deploys a unique feature of the CE indicator: it can be decomposed, allowing for matrix comparisons at various levels within one coherent framework. To illustrate the power of this approach, we apply the technique to five multi-region input–output (MRIO) tables for 2011, derived from the Eora, EXIOBASE, GTAP, OECD and WIOD databases. We make pairwise comparisons between MRIOs and between global value chain (GVC) computations based on these MRIOs. We find that answers to questions related to broader aggregates are generally quite similar, but that answers to questions at the level of single industries can be rather different across MRIOs. Journal: Economic Systems Research Pages: 75-94 Issue: 1 Volume: 35 Year: 2023 Month: 01 X-DOI: 10.1080/09535314.2021.1990869 File-URL: http://hdl.handle.net/10.1080/09535314.2021.1990869 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:35:y:2023:i:1:p:75-94 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_1964440_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Paul de Boer Author-X-Name-First: Paul Author-X-Name-Last: de Boer Author-Name: Jan van Daal Author-X-Name-First: Jan Author-X-Name-Last: van Daal Author-Name: João F. D. Rodrigues Author-X-Name-First: João F. D. Author-X-Name-Last: Rodrigues Title: Consumer preferences in CGE models when data are scarce: comparing the linear expenditure and the indirect addilog systems Abstract: The linear expenditure system (LES) is a popular option for modeling consumer preferences in computable general equilibrium (CGE) models when data are scarce, since its underlying functional form is parsimonious in parameters. The goal of this paper is to compare the performance of LES against the indirect addilog system (IAS), a hardly known alternative, in terms of their theoretical properties and in a case study. Both systems are equally easy to implement and require the same information for parameter calibration. IAS, however, offers a richer description of consumer preferences. On the basis of an expenditure survey of Statistics Palestine in 1998, we find overwhelming statistical evidence that the IAS demand equations perform better than those of the LES. Simulations with a CGE model developed for disaster impact analysis applied to the intifada of the early 2000s show that the absolute value of the equivalent variation is larger for IAS than for LES. Journal: Economic Systems Research Pages: 1-29 Issue: 1 Volume: 35 Year: 2023 Month: 01 X-DOI: 10.1080/09535314.2021.1964440 File-URL: http://hdl.handle.net/10.1080/09535314.2021.1964440 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:35:y:2023:i:1:p:1-29 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_1965549_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Arianto A. Patunru Author-X-Name-First: Arianto A. Author-X-Name-Last: Patunru Author-Name: Prema-chandra Athukorala Author-X-Name-First: Prema-chandra Author-X-Name-Last: Athukorala Title: Measuring trade in value added: how valid is the proportionality assumption? Abstract: For countries that have only aggregate (‘competitive type’) input–output (IO) tables, value added in exports is commonly estimated using the ‘proportionality assumption’ to separate imported-inputs from domestically procured inputs. We test the validity of this assumption using non-competitive type IO tables, which contain separately compiled domestic- and imported-input matrices, for Indonesia, Thailand, Malaysia, Taiwan, and Australia. The results show that the proportionality assumption leads to an overestimation of domestic value-added in exports, and that the magnitude of the bias becomes amplified when the export composition of a country shifts from primary products to manufactured goods through integration into global production networks. Journal: Economic Systems Research Pages: 292-300 Issue: 2 Volume: 35 Year: 2023 Month: 04 X-DOI: 10.1080/09535314.2021.1965549 File-URL: http://hdl.handle.net/10.1080/09535314.2021.1965549 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:35:y:2023:i:2:p:292-300 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_1951178_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: José L. Zofío Author-X-Name-First: José L. Author-X-Name-Last: Zofío Author-Name: Julio González Author-X-Name-First: Julio Author-X-Name-Last: González Author-Name: Angel Prieto Author-X-Name-First: Angel Author-X-Name-Last: Prieto Author-Name: Juan Vicente Author-X-Name-First: Juan Author-X-Name-Last: Vicente Title: Modelling the spatial and sectoral benefits of productivity enhancing innovations using a transport oriented multiregional IO framework: the ‘megatruck’ in Spain Abstract: We render operational the model outlined by Carter (1990) via the introduction of the research methods necessary for studying the spatial and sectoral (upstream and downstream) benefits of productivity-enhancing innovations within a real interregional input–output framework. As case study we examine the reduction in production costs derived from the adoption of longer and heavier vehicles in freight road transportation. We exploit a new Spanish regional table including a detailed disaggregation of the transportation sector. The productivity gains at the national level, resulting from a 30% reduction in transport costs, amount to 2.95% of the GVA at market prices. Results show that firms operating in this niche market appropriate most of the gross operation surplus (which increases by 10%), consistent with the existence of market power. The remaining transportation sectors see profits slightly worsened, suggesting limited substitution effects. A high regional heterogeneity exists because of the different input–output structures. Journal: Economic Systems Research Pages: 228-264 Issue: 2 Volume: 35 Year: 2023 Month: 04 X-DOI: 10.1080/09535314.2021.1951178 File-URL: http://hdl.handle.net/10.1080/09535314.2021.1951178 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:35:y:2023:i:2:p:228-264 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_2047011_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Aleksandra Kordalska Author-X-Name-First: Aleksandra Author-X-Name-Last: Kordalska Author-Name: Magdalena Olczyk Author-X-Name-First: Magdalena Author-X-Name-Last: Olczyk Title: Upgrading low value-added activities in global value chains: a functional specialisation approach Abstract: This paper aims to identify patterns of functional specialisation (FS) in global value chains (GVCs) and determinants of upgrading them for selected Central Eastern European (CEE) economies. By combing the World Input-Output Database with data on occupations, we reveal a new FS pattern among subgroups of CEEs. Poland and Slovakia have an unfavourable GVC position and specialise in low value-added fabrication function. In contrast, other CEEs have competitive advantages in high value-added tasks: the Baltic countries and Slovenia in management services, the Czech Republic and Slovenia in R&D. We identify upgrading factors for different types of FS in GVCs. The wages convergence of CEEs with developed economies, and strong GVC backward linkages support the path to higher value-added in almost all business functions. Higher GDP per capita and lower economic distance to Germany allow CEEs to escape from ‘factory economies' status and also generate higher value-added in R&D activities. Journal: Economic Systems Research Pages: 265-291 Issue: 2 Volume: 35 Year: 2023 Month: 04 X-DOI: 10.1080/09535314.2022.2047011 File-URL: http://hdl.handle.net/10.1080/09535314.2022.2047011 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:35:y:2023:i:2:p:265-291 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_2026894_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Daniel Herrero Author-X-Name-First: Daniel Author-X-Name-Last: Herrero Author-Name: Adrián Rial Author-X-Name-First: Adrián Author-X-Name-Last: Rial Title: Productive linkages in a segmented economy: the role of services in the export performance of German manufacturing Abstract: This article analyzes the causes that affect the export performance of the German manufacturing sector. By applying a subsystem approach to input–output analysis, we take into account the interlinkages between manufacturing and services. In particular, we consider two types of relationships that influence manufacturing competitiveness: the wage squeeze in services due to institutional factors and outsourcing; and the role played by knowledge-intensive business services (KIBS) as innovation drivers. Taking vertically integrated sectors as units of analysis, an export model is estimated. We find that labor costs play only a minor role for international competitiveness, while non-price factors are the main drivers of German exports. Therefore, although the wage squeeze in services is the centerpiece in the unit labor costs and export prices moderation, it is of minor importance for export growth. Conversely, the growing integration of KIBS provides a strong stimulus for non-price competitiveness and export growth. Journal: Economic Systems Research Pages: 183-210 Issue: 2 Volume: 35 Year: 2023 Month: 04 X-DOI: 10.1080/09535314.2022.2026894 File-URL: http://hdl.handle.net/10.1080/09535314.2022.2026894 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:35:y:2023:i:2:p:183-210 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_2062301_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Enrique Gilles Author-X-Name-First: Enrique Author-X-Name-Last: Gilles Author-Name: Javier Deaza Author-X-Name-First: Javier Author-X-Name-Last: Deaza Author-Name: Alejandro Vivas Author-X-Name-First: Alejandro Author-X-Name-Last: Vivas Title: The role of imported intermediates in productivity change Abstract: We address the role of imported intermediates in productivity by applying a methodology that proposes an equivalence between input–output analysis and data envelopment analysis, and decomposes sectoral productivity gains into two factors: efficiency change and technical change. We illustrate this by using data for Spain in the 2008–2015 period with three levels of labor skills, capital, and twenty-eight industries, and compare the results of two different settings: one including only domestic intermediates and the other incorporating total (i.e. both domestic and imported) inputs. We find differential results regarding productivity, efficiency, and technical changes that are attributable to imported intermediates. We also find that the main drivers of productivity change are high-skilled labor and the manufacturing sector. Our results suggest the importance of both trade and educational policies that respectively foster international economic complementarities and promote higher qualification of labor. Journal: Economic Systems Research Pages: 211-227 Issue: 2 Volume: 35 Year: 2023 Month: 04 X-DOI: 10.1080/09535314.2022.2062301 File-URL: http://hdl.handle.net/10.1080/09535314.2022.2062301 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:35:y:2023:i:2:p:211-227 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_1975098_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Rayan Wolf Author-X-Name-First: Rayan Author-X-Name-Last: Wolf Author-Name: Angelo C. Gurgel Author-X-Name-First: Angelo C. Author-X-Name-Last: Gurgel Author-Name: Leonardo C. B. Cardoso Author-X-Name-First: Leonardo C. B. Author-X-Name-Last: Cardoso Author-Name: Ian M. Trotter Author-X-Name-First: Ian M. Author-X-Name-Last: Trotter Author-Name: Marcos S. Nazareth Author-X-Name-First: Marcos S. Author-X-Name-Last: Nazareth Author-Name: Erly C. Teixeira Author-X-Name-First: Erly C. Author-X-Name-Last: Teixeira Title: Welfare impacts of a negative income tax on regions of Brazil Abstract: This paper aims to analyze the effects of a public policy based on negative income tax (NIT) ideals as an alternative to the current social programs of income transfer in Brazil. A multiregional applied computable general equilibrium model of Brazil's economy is used to analyze the impacts on households' welfare, split into 10 income classes, and 2 factors (capital and labor) for each of 5 major regions. By analyzing two scenarios for the proposed policy, we show that the NIT could be more effective than the current social programs as well as resulting in longer lasting outcomes. Journal: Economic Systems Research Pages: 301-323 Issue: 2 Volume: 35 Year: 2023 Month: 04 X-DOI: 10.1080/09535314.2021.1975098 File-URL: http://hdl.handle.net/10.1080/09535314.2021.1975098 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:35:y:2023:i:2:p:301-323 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_2048294_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Maureen Lankhuizen Author-X-Name-First: Maureen Author-X-Name-Last: Lankhuizen Author-Name: Dario Diodato Author-X-Name-First: Dario Author-X-Name-Last: Diodato Author-Name: Anet Weterings Author-X-Name-First: Anet Author-X-Name-Last: Weterings Author-Name: Olga Ivanova Author-X-Name-First: Olga Author-X-Name-Last: Ivanova Author-Name: Mark Thissen Author-X-Name-First: Mark Author-X-Name-Last: Thissen Title: Identifying labour market bottlenecks in the energy transition: a combined IO-matching analysis Abstract: This paper combines an input–output model and a novel regional labour market matching model in order to identify potential bottlenecks in regional labour markets resulting from shocks in demand caused by the energy transition. Identifying these bottlenecks provides relevant information for policymakers to determine in which regions and industries policy intervention in labour markets may be needed to ensure a smooth transformation. We analyse the effects of a shock that is illustrative for the energy transition in the Netherlands. Our results indicate that the aim of the Dutch government to substantially reduce greenhouse gas emissions may, at least in the short run, be hampered by bottlenecks in labour markets. Journal: Economic Systems Research Pages: 157-182 Issue: 2 Volume: 35 Year: 2023 Month: 04 X-DOI: 10.1080/09535314.2022.2048294 File-URL: http://hdl.handle.net/10.1080/09535314.2022.2048294 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:35:y:2023:i:2:p:157-182 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_2164483_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Ruoqi Li Author-X-Name-First: Ruoqi Author-X-Name-Last: Li Author-Name: Wenjun Wu Author-X-Name-First: Wenjun Author-X-Name-Last: Wu Author-Name: Wei Zhang Author-X-Name-First: Wei Author-X-Name-Last: Zhang Author-Name: Yuanchun Zhou Author-X-Name-First: Yuanchun Author-X-Name-Last: Zhou Author-Name: Hongqiang Jiang Author-X-Name-First: Hongqiang Author-X-Name-Last: Jiang Author-Name: Yaling Lu Author-X-Name-First: Yaling Author-X-Name-Last: Lu Author-Name: Cuiyang Feng Author-X-Name-First: Cuiyang Author-X-Name-Last: Feng Author-Name: Jinnan Wang Author-X-Name-First: Jinnan Author-X-Name-Last: Wang Author-Name: Miaomiao Liu Author-X-Name-First: Miaomiao Author-X-Name-Last: Liu Author-Name: Jun Bi Author-X-Name-First: Jun Author-X-Name-Last: Bi Author-Name: Yu Liu Author-X-Name-First: Yu Author-X-Name-Last: Liu Author-Name: Hongkuan Zang Author-X-Name-First: Hongkuan Author-X-Name-Last: Zang Author-Name: Yuli Shan Author-X-Name-First: Yuli Author-X-Name-Last: Shan Title: Managing lead (Pb) emissions in China from the perspective of final demand Abstract: Lead (Pb) pollution is a serious environmental and health risk and remains a major challenge for China. This study analyzes China’s atmospheric Pb emissions from the dual perspectives of production and final demand, by integrating localized emission factors and a Multi-Regional Input – Output model. Our results show that Shandong, Hebei, and Hubei directly contribute over 36% of the national emissions. However, from the final demand perspective, some developed provinces, such as Jiangsu, Guangdong, and Zhejiang, induce a considerable proportion (29%) of the national emissions by relocating emissions to other provinces through inter-provincial trade. Trade-embodied emissions typically flow from interior regions to more affluent coastal regions (e.g. Henan-Jiangsu, Anhui-Jiangsu, Hunan-Guangdong). Considering both production and final demand, we identify different roles for provinces in Pb emission management. Prosperous beneficiary provinces should take more responsibilities by transferring advanced technologies, especially those in industries such as coal dressing, to sacrificial provinces. Journal: Economic Systems Research Pages: 417-437 Issue: 3 Volume: 35 Year: 2023 Month: 07 X-DOI: 10.1080/09535314.2022.2164483 File-URL: http://hdl.handle.net/10.1080/09535314.2022.2164483 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:35:y:2023:i:3:p:417-437 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_2174003_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Timothé Beaufils Author-X-Name-First: Timothé Author-X-Name-Last: Beaufils Author-Name: Etienne Berthet Author-X-Name-First: Etienne Author-X-Name-Last: Berthet Author-Name: Hauke Ward Author-X-Name-First: Hauke Author-X-Name-Last: Ward Author-Name: Leonie Wenz Author-X-Name-First: Leonie Author-X-Name-Last: Wenz Title: Beyond production and consumption: using throughflows to untangle the virtual trade of externalities Abstract: Understanding how countries contribute to the generation of externalities globally is important for designing sustainable policies aimed at reducing negative externalities such as carbon emissions. Commonly used approaches focus on either producers or consumers, thereby neglecting the role of intermediates. We here introduce the concept of throughflow to comprehensively quantify upstream externalities generated by the supply chains originating from, passing through or ending in a given country. We define the Throughflow Based Accounting (TBA) framework as the decomposition of the throughflow into local, imported, exported and traversing externalities. We illustrate the strength of the TBA by identifying the CO2 emissions caused by supply chains involving the German economy. We show that Germany could use its position in global value chains to help reduce two times more CO2 emissions than measured with usual production- or consumption-based accounting frameworks. Journal: Economic Systems Research Pages: 376-396 Issue: 3 Volume: 35 Year: 2023 Month: 07 X-DOI: 10.1080/09535314.2023.2174003 File-URL: http://hdl.handle.net/10.1080/09535314.2023.2174003 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:35:y:2023:i:3:p:376-396 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_2034139_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Lena Kilian Author-X-Name-First: Lena Author-X-Name-Last: Kilian Author-Name: Anne Owen Author-X-Name-First: Anne Author-X-Name-Last: Owen Author-Name: Andy Newing Author-X-Name-First: Andy Author-X-Name-Last: Newing Author-Name: Diana Ivanova Author-X-Name-First: Diana Author-X-Name-Last: Ivanova Title: Microdata selection for estimating household consumption-based emissions Abstract: To estimate household emissions from a consumption-perspective, national accounts are typically disaggregated to a sub-national level using household expenditure data. While limitations around using expenditure data are frequently discussed, differences in emission estimates generated from seemingly comparable expenditure microdata are not well-known. We compare UK neighbourhood greenhouse gas emission estimates derived from three such microdatasets: the Output Area Classification, the Living Costs and Food Survey, and a dataset produced by the credit reference agency TransUnion. Findings indicate moderate similarity between emission estimates from all datasets, even at detailed product and spatial levels; importantly, similarity increases for higher-emission products. Nevertheless, levels of similarity vary by products and geographies, highlighting the impact microdata selection can have on emission estimates. We focus our discussion on how uncertainty from microdata selection can be reduced in other UK and international contexts by selecting data based on the data generation process, the level of disaggregation needed, physical unit availability and research implications. Journal: Economic Systems Research Pages: 325-353 Issue: 3 Volume: 35 Year: 2023 Month: 07 X-DOI: 10.1080/09535314.2022.2034139 File-URL: http://hdl.handle.net/10.1080/09535314.2022.2034139 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:35:y:2023:i:3:p:325-353 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_2133598_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Joel Bruneau Author-X-Name-First: Joel Author-X-Name-Last: Bruneau Author-Name: Madanmohan Ghosh Author-X-Name-First: Madanmohan Author-X-Name-Last: Ghosh Author-Name: Deming Luo Author-X-Name-First: Deming Author-X-Name-Last: Luo Author-Name: Yunfa Zhu Author-X-Name-First: Yunfa Author-X-Name-Last: Zhu Title: Income and investment, not energy policy, are driving GHG emission intensities Abstract: Global greenhouse gas (GHG) emissions continue to rise but, at the same time, emission intensities associated with domestic consumption and territorial production have declined albeit at vastly different rates across economies. To identify the socioeconomic factors that drive this cross-country variation, we combine input–output modelling with panel data analysis. Using the World Input–Output Database, we estimate GHG intensities separately for domestic consumption and for territorial production. For the regression analysis, we consider several socioeconomic factors that capture development features, exposure to international trade, as well as energy prices and GHG-relevant programmes. Our results show that development-type factors, such as per capita income, capital-labour ratios, and investments, are the primary drivers of cross-country differences. Energy prices and domestic GHG policies are not major drivers. We also find that reductions in intensities are primarily through changes in techniques rather than compositional changes in the structure of economies. Journal: Economic Systems Research Pages: 438-457 Issue: 3 Volume: 35 Year: 2023 Month: 07 X-DOI: 10.1080/09535314.2022.2133598 File-URL: http://hdl.handle.net/10.1080/09535314.2022.2133598 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:35:y:2023:i:3:p:438-457 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_2035689_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Huiwen Liu Author-X-Name-First: Huiwen Author-X-Name-Last: Liu Author-Name: Huibin Du Author-X-Name-First: Huibin Author-X-Name-Last: Du Author-Name: Zengkai Zhang Author-X-Name-First: Zengkai Author-X-Name-Last: Zhang Author-Name: Huimin Wang Author-X-Name-First: Huimin Author-X-Name-Last: Wang Author-Name: Kunfu Zhu Author-X-Name-First: Kunfu Author-X-Name-Last: Zhu Author-Name: Yaling Lu Author-X-Name-First: Yaling Author-X-Name-Last: Lu Author-Name: Xi Liu Author-X-Name-First: Xi Author-X-Name-Last: Liu Title: Trade heterogeneity and virtual water exports of China Abstract: China is facing serious water scarcity, and the effects of international trade on its water resources have been widely examined. Processing exports account for nearly half of China’s gross exports. Adopting China’s multi-regional input–output table that captures processing exports, we enrich the literature on virtual water exports by accounting for trade heterogeneity. The results show that China’s virtual water exports show a significant trade heterogeneity. Normal and processing exports are attributed to 86.7% and 13.3% of the Agriculture sector’s water use induced by exports respectively. Conversely, normal and processing exports are attributed to 31.8% and 68.3% of the Communications Equipment, Computers sector’s water use induced by exports respectively. In addition, a cross-regional compensation is needed to deal with the unequal regional distribution of water uses and economic benefits related to exports. Journal: Economic Systems Research Pages: 397-416 Issue: 3 Volume: 35 Year: 2023 Month: 07 X-DOI: 10.1080/09535314.2022.2035689 File-URL: http://hdl.handle.net/10.1080/09535314.2022.2035689 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:35:y:2023:i:3:p:397-416 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_2142528_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Meihui Jiang Author-X-Name-First: Meihui Author-X-Name-Last: Jiang Author-Name: Cai Suo Author-X-Name-First: Cai Author-X-Name-Last: Suo Author-Name: Liangpeng Wu Author-X-Name-First: Liangpeng Author-X-Name-Last: Wu Author-Name: Peter Berrill Author-X-Name-First: Peter Author-X-Name-Last: Berrill Title: Consumption structure optimization for reducing energy footprint Abstract: To investigate how to obtain the optimal balance between energy consumption and economic development, this paper proposes a multifactor optimization model (MFOM). Different from previous input–output optimization models, our proposed MFOM comprehensively considers the direct and indirect impacts of sectoral consumption activities on total energy consumption. The results show that MFOM achieves higher energy-saving goals by smaller adjustment to consumption activities than the previous input–output optimization models do. The results also show that the consumption of some products should be limited to achieve the energy-saving and economic growth goals, such as Non-ferrous Metal Ore Mining, Chemical Products and Ferrous Metal Ore Processing. Furthermore, the results indicate that the share of some sectors, especially high-level manufacturing sectors, significantly decreases in the consumption structure after optimization. To maintain the sustainable development of these sectors, the dependence of their production activities on energy-intensive products should be reduced. Journal: Economic Systems Research Pages: 458-477 Issue: 3 Volume: 35 Year: 2023 Month: 07 X-DOI: 10.1080/09535314.2022.2142528 File-URL: http://hdl.handle.net/10.1080/09535314.2022.2142528 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:35:y:2023:i:3:p:458-477 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_2174002_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Ershad Ostadzadeh Author-X-Name-First: Ershad Author-X-Name-Last: Ostadzadeh Author-Name: Amin Elshorbagy Author-X-Name-First: Amin Author-X-Name-Last: Elshorbagy Author-Name: Marta Tuninetti Author-X-Name-First: Marta Author-X-Name-Last: Tuninetti Author-Name: Francesco Laio Author-X-Name-First: Francesco Author-X-Name-Last: Laio Author-Name: Ahmed Abdelkader Author-X-Name-First: Ahmed Author-X-Name-Last: Abdelkader Title: Who will dominate the global fossil fuel trade? Abstract: Fossil fuels are not distributed evenly throughout the world, and hence the countries rely heavily on international trade to secure energy supply. Characterization of the energy trade network is needed to conduct long-term assessments of energy security. This study proposes a modeling framework to assess the evolution of energy trade under current conditions as well as under future scenarios up to 2050. The total trade of each country is estimated with trade predictive models (TPMs) using key variables. Subsequently, a matrix-balancing method (RAS) is used to estimate the annual bilateral trades. The projected energy trade network in 2050 varies under each shared socioeconomic pathway (SSP) of the future, with annual fossil fuel global trades among countries ranging between 538 and 215 EJ. Canada, USA, Venezuela, and China are projected to dominate the global trade network, with Canada-USA remaining the most dominant fossil fuel trade link up to 2050. Journal: Economic Systems Research Pages: 354-375 Issue: 3 Volume: 35 Year: 2023 Month: 07 X-DOI: 10.1080/09535314.2023.2174002 File-URL: http://hdl.handle.net/10.1080/09535314.2023.2174002 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:35:y:2023:i:3:p:354-375 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_2012430_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yuwan Duan Author-X-Name-First: Yuwan Author-X-Name-Last: Duan Author-Name: Erik Dietzenbacher Author-X-Name-First: Erik Author-X-Name-Last: Dietzenbacher Author-Name: Bart Los Author-X-Name-First: Bart Author-X-Name-Last: Los Author-Name: Cuihong Yang Author-X-Name-First: Cuihong Author-X-Name-Last: Yang Title: Processing trade in Chinese interregional input–output tables: construction and application Abstract: We construct new interregional input–output tables for China, which can be used to analyze changes in the interindustry linkages within and between eight Chinese regions, and their consequences. We claim that analyses based on these tables yield more accurate results than analyses using existing interregional input–output tables for China, because our tables explicitly account for a typical feature of the Chinse economy: the importance of processing exports activities. These activities rely heavily on imported inputs and much less on inputs sourced from domestic regions. Accounting for such differences between processing exports and other production activities reduces aggregation biases. We illustrate the usefulness of the tables by computing supply chain fragmentation indices for China and quantifying the biases that are avoided by using our input–output tables instead of conventional ones. We make our tables (for 2002, 2007 and 2012) publicly available. Journal: Economic Systems Research Pages: 566-585 Issue: 4 Volume: 35 Year: 2023 Month: 10 X-DOI: 10.1080/09535314.2021.2012430 File-URL: http://hdl.handle.net/10.1080/09535314.2021.2012430 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:35:y:2023:i:4:p:566-585 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_2065466_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Marina Yegorovna Anokhina Author-X-Name-First: Marina Yegorovna Author-X-Name-Last: Anokhina Title: Fuzzy cognitive model of agricultural economic growth Abstract: Agrarian growth is becoming increasingly important to many countries as the global demand for food rises, natural resources become scarcer, and environmental problems deepen. Herein, I propose a mechanism for designing agricultural growth management strategies that is based on fuzzy cognitive logic. The research presented is built on three main findings. First, it integrates established theories of economic growth, economic cyclicality, and sectoral market theories into a model of agricultural growth management. This enables the identification of main growth factors and the determination of the nature of their effects on agricultural dynamics. Second, I develop an algorithm for cognitive analysis of agricultural growth management and justify both this mathematical apparatus and the tools it uses. And third, I conduct a computational experiment that applies cognitive technologies to generate what I believe is the best agricultural economic growth strategy for Russia. Journal: Economic Systems Research Pages: 658-680 Issue: 4 Volume: 35 Year: 2023 Month: 10 X-DOI: 10.1080/09535314.2022.2065466 File-URL: http://hdl.handle.net/10.1080/09535314.2022.2065466 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:35:y:2023:i:4:p:658-680 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_2067029_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Tânia Moreira Alberti Author-X-Name-First: Tânia Moreira Author-X-Name-Last: Alberti Author-Name: Kênia de Souza Author-X-Name-First: Kênia Author-X-Name-Last: de Souza Author-Name: Alexandre Porsse Author-X-Name-First: Alexandre Author-X-Name-Last: Porsse Title: Poverty and the functional distribution of income in the input–output framework: in pursuit of strategies for inclusive growth Abstract: The eradication of poverty as proposed by the first Sustainable Development Goal is one of the main challenges faced by all countries, especially the underdeveloped and developing nations. In this paper, we develop an approach for integrating the input–output framework with a microsimulation model where consumption and income data are highly disaggregated and along with Miyazawa linkages. This allows us to identify how sectoral economic structure affects income distribution. This, in turn, provides information relevant to the inclusive growth policies that can create work opportunities for the low-income population and, thereby eliminating poverty. Results show how labor-intensive sectors might be important in ending poverty and in reducing inequality. They even show the set of activities that could best contribute to this goal via changes in the productive structure. Journal: Economic Systems Research Pages: 614-633 Issue: 4 Volume: 35 Year: 2023 Month: 10 X-DOI: 10.1080/09535314.2022.2067029 File-URL: http://hdl.handle.net/10.1080/09535314.2022.2067029 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:35:y:2023:i:4:p:614-633 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_2062302_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Casiano A. Manrique-de-Lara-Peñate Author-X-Name-First: Casiano A. Author-X-Name-Last: Manrique-de-Lara-Peñate Author-Name: José J. Déniz-Mayor Author-X-Name-First: José J. Author-X-Name-Last: Déniz-Mayor Title: The business accounting matrix: a proposal with an application Abstract: National accounting matrices (NAM) perfectly describe the economic structure of a national economy, summarising the whole process of generation of primary income and its distribution among the different institutional sectors of the economy. It is not just a way to represent the main economic statistics of an economy but it also serves as the basis for most macroeconomic modelling efforts. The business accounting matrix (BAM) presents the most relevant information for the firm in a similar way, adapted to the descriptive potential of financial accounting, what we believe can be useful both for economic modellers and for decision makers at the firm level. Our intention is not to convince business administrators to change their accounting paradigm but to help analysts and researchers to obtain a comprehensive description of the activity of a firm aligned to well recognised economic statistical standards. Journal: Economic Systems Research Pages: 516-540 Issue: 4 Volume: 35 Year: 2023 Month: 10 X-DOI: 10.1080/09535314.2022.2062302 File-URL: http://hdl.handle.net/10.1080/09535314.2022.2062302 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:35:y:2023:i:4:p:516-540 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_2091427_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Raúl Vázquez-López Author-X-Name-First: Raúl Author-X-Name-Last: Vázquez-López Title: Assessing employment benefits from trade: US-Mexico trade under NAFTA Abstract: Recent tendencies in the operation of Global Value Chains (GVC) have indicated an increasingly asymmetric distribution of benefits in terms of the participating countries and different layers of workers. This paper employs the World Input–Output Database to calculate the working hours and wages embodied in manufacturing exports between the US and Mexico, by country of origin and skill level, from 1995 to 2008. In purchasing power, the increase in total wages paid in the US, generated by the bilateral trade, was significantly higher than that of wages paid in Mexico, even though the additional number of hours worked in Mexico was seven times higher. For the US, the results ratify the loss of jobs after 2001, but with an upgrade of the skill structure. We conclude that the trend towards replacement of low-skilled labour by more capital-intensive systems occurs within GVC to the detriment of the incomes of low-skilled workers. Journal: Economic Systems Research Pages: 541-565 Issue: 4 Volume: 35 Year: 2023 Month: 10 X-DOI: 10.1080/09535314.2022.2091427 File-URL: http://hdl.handle.net/10.1080/09535314.2022.2091427 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:35:y:2023:i:4:p:541-565 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_1981830_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Luis Enrique Pedauga Author-X-Name-First: Luis Enrique Author-X-Name-Last: Pedauga Author-Name: Agustin Velazquez Author-X-Name-First: Agustin Author-X-Name-Last: Velazquez Author-Name: Elvis Hernández-Perdomo Author-X-Name-First: Elvis Author-X-Name-Last: Hernández-Perdomo Title: Systemic risk and macro-financial interconnectedness using an FSAM framework Abstract: We provide a general framework to assess the traceability of systemic risk and macro interconnectedness to understand the financial risk transmissions channels. Our contribution help address the information need established in the DGI-2 in a FSAM-based model that fully captures the interconnectedness between real and financial sectors. Recent developments in the field of IO and SAM evaluations have led to a renewed interest in the usage of linkage analysis to measure the role that a sector play within the economy. Focusing on the backward and forward linkage, hypothetical extraction method, and structural path analysis, we show how feasible it is to include heterogeneous financial institutions to study risk interactions effects on macroeconomic outcomes. This paper’s proposal may be useful for thinking about how micro-data and macro-aggregates can be incorporated into the set of financial soundness indicators, allowing to obtain an idea of the vulnerabilities of the financial sector. Journal: Economic Systems Research Pages: 479-515 Issue: 4 Volume: 35 Year: 2023 Month: 10 X-DOI: 10.1080/09535314.2021.1981830 File-URL: http://hdl.handle.net/10.1080/09535314.2021.1981830 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:35:y:2023:i:4:p:479-515 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_2153221_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Alessandro Borin Author-X-Name-First: Alessandro Author-X-Name-Last: Borin Author-Name: Michele Mancini Author-X-Name-First: Michele Author-X-Name-Last: Mancini Title: Measuring what matters in value-added trade Abstract: The spread of global value chains (GVCs) has given rise to new statistical tools, the inter-country input–output tables, and new analytical frameworks aimed at properly identifying production linkages between and within economies. However, several important questions remain unaddressed. This paper proposes a new toolkit for value-added accounting of trade flows at the aggregate, bilateral, and sectoral levels. The paper shows how different empirical issues require distinct accounting perspectives and maps these methodologies onto the economic questions they are best suited to address. We provide novel accounting perspectives that allow us to properly address important empirical issues. With respect to other accounting methodologies previously proposed in the literature, we offer more accurate or, in some cases, more exhaustive value-added decompositions of trade flows (e.g. by covering both domestic and foreign value-added). In addition, the paper gathers a significant amount of the related literature under one comprehensive framework. Journal: Economic Systems Research Pages: 586-613 Issue: 4 Volume: 35 Year: 2023 Month: 10 X-DOI: 10.1080/09535314.2022.2153221 File-URL: http://hdl.handle.net/10.1080/09535314.2022.2153221 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:35:y:2023:i:4:p:586-613 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_2135091_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Pablo R. Liboreiro Author-X-Name-First: Pablo R. Author-X-Name-Last: Liboreiro Title: Estimating disguised unemployment in major middle-income countries by means of non-linear input–output analysis, 2000–2014 Abstract: According to the disguised-unemployment hypothesis, significant wage differences between sectors in less-developed countries result from segmented labour markets and overcrowding of the flexible market segment. So stated, this hypothesis implies a way to measure non-open unemployment: by the amount of labour that must be withdrawn from the market for relative wages to change. Indeed, it is possible to undertake the exercise of comparing the actual employment of a country with a simulated ‘non-dualistic’ employment by means of a non-linear input-output model and taking the US wage structure as a benchmark. This simulation experiment was carried out for seven middle-income countries (Brazil, China, Indonesia, India, Russia, Mexico, and Turkey) using data from the 2016 Release of the World Input–Output Database. The results of the study are consistent with the disguised-unemployment hypothesis, as well as with related literature. Journal: Economic Systems Research Pages: 634-657 Issue: 4 Volume: 35 Year: 2023 Month: 10 X-DOI: 10.1080/09535314.2022.2135091 File-URL: http://hdl.handle.net/10.1080/09535314.2022.2135091 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:35:y:2023:i:4:p:634-657 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_2122407_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Volkan Recai Cetin Author-X-Name-First: Volkan Recai Author-X-Name-Last: Cetin Title: When do public transport investments really matter? A CGE analysis for Türkiye Abstract: In this study, the economic impact of public transport investments which have been extensively used as an investment policy tool in Türkiye is analysed from different fiscal policy and financing perspectives by employing a dynamic computable general equilibrium (CGE) model. The impact of public transport investments on key economic performance indicators of real GDP growth and unemployment and macroeconomic vulnerability indicators were investigated in alternative scenarios involving such different financing mechanisms as tax revenues, external borrowing, and public–private partnerships. The results assert that public transport investments stimulate economic growth and employment. Nevertheless, the financing mechanism is an essential factor that determines the level of the impact, its sustainability and in some cases its direction. Journal: Economic Systems Research Pages: 1-23 Issue: 1 Volume: 36 Year: 2024 Month: 01 X-DOI: 10.1080/09535314.2022.2122407 File-URL: http://hdl.handle.net/10.1080/09535314.2022.2122407 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:36:y:2024:i:1:p:1-23 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_2272213_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Naci Dilekli Author-X-Name-First: Naci Author-X-Name-Last: Dilekli Author-Name: Ignacio Cazcarro Author-X-Name-First: Ignacio Author-X-Name-Last: Cazcarro Author-Name: Julio Sánchez-Chóliz Author-X-Name-First: Julio Author-X-Name-Last: Sánchez-Chóliz Title: Regions may share factors of production, too: Implementation of topologies within the World Trade Model Abstract: The World Trade Model (WTM), which incorporates input - output data and minimizes global factor costs subject to satisfying demands while being constrained by each region's factor endowments, is one of models based on the principle of comparative advantage. These factor endowments are not necessarily fixed in each region as traditionally posed in most theories, but rather can or de facto be shared across regions. We highlight the importance of this feature for economic modeling, and then introduce an extension for the integration of topological rules into WTM to facilitate the sharing of factors with directionality (one-way or two-way) across regions. A series of numerical examples illustrating a range of sharing scenarios is demonstrated to facilitate an examination of this extension's features. Finally, we discuss the most interesting cases in which this topology can be used, as well as the additional challenges or implementations that can be derived from this work. Journal: Economic Systems Research Pages: 46-69 Issue: 1 Volume: 36 Year: 2024 Month: 01 X-DOI: 10.1080/09535314.2023.2272213 File-URL: http://hdl.handle.net/10.1080/09535314.2023.2272213 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:36:y:2024:i:1:p:46-69 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_2213394_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Severin Reissl Author-X-Name-First: Severin Author-X-Name-Last: Reissl Author-Name: Alessandro Caiani Author-X-Name-First: Alessandro Author-X-Name-Last: Caiani Author-Name: Francesco Lamperti Author-X-Name-First: Francesco Author-X-Name-Last: Lamperti Author-Name: Tommaso Ferraresi Author-X-Name-First: Tommaso Author-X-Name-Last: Ferraresi Author-Name: Leonardo Ghezzi Author-X-Name-First: Leonardo Author-X-Name-Last: Ghezzi Title: A regional input-output model of the COVID-19 crisis in Italy: decomposing demand and supply factors Abstract: We propose an empirically estimated inter-regional input-output model of the Italian economy designed for COVID-19 impact assessment, intended as a tool for public authorities facing comparable adverse events and requiring timely estimates of sectoral and regional economic impacts. We evaluate the contributions of demand- and supply-side factors to output losses in Italy during the pandemic, providing insights on the suitability of demand- and supply-side policies. Supply-side shocks, as a consequence of mandated closures, are the primary driver of output losses only during the nationwide lockdown of spring 2020. During the following stages, changes in final demand due to income losses and changes in mobility play a pivotal role at the aggregate, regional, and sectoral levels. While this result supports demand-side policies, the efficacy of such policies may be hampered when final consumption demand is low chiefly due to reduced mobility rather than income losses. Journal: Economic Systems Research Pages: 100-130 Issue: 1 Volume: 36 Year: 2024 Month: 01 X-DOI: 10.1080/09535314.2023.2213394 File-URL: http://hdl.handle.net/10.1080/09535314.2023.2213394 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:36:y:2024:i:1:p:100-130 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_2138271_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Mohammad Masudur Rahman Author-X-Name-First: Mohammad Masudur Author-X-Name-Last: Rahman Author-Name: Anna Strutt Author-X-Name-First: Anna Author-X-Name-Last: Strutt Title: Costs of LDC graduation on market access: evidence from emerging Bangladesh Abstract: We empirically estimate the costs of LDC graduation on market access for Bangladesh using a computable general equilibrium modelling framework. If developed countries impose standard generalized system of preferences (GSP) tariffs while importing from Bangladesh and at the same time Bangladesh eliminates its export subsidies, our modelling suggests that real gross domestic product (GDP) may drop by about 0.38 per cent and exports could fall by about six percent for Bangladesh. The ready-made garment sector could be affected severely, with results suggesting exports could decline by about 14 per cent. Our analysis indicates that the income of urban households could decrease by three per cent, and household consumption may shrink by about four per cent. To minimize these potentially adverse impacts, Bangladesh should aim to ensure market access continues through signing preferential trade agreements. In addition, streamlined subsidy policies, enhanced domestic productivity, export diversification, and increased foreign investment, are likely to be important areas of focus for a smooth LDC graduation. Journal: Economic Systems Research Pages: 24-45 Issue: 1 Volume: 36 Year: 2024 Month: 01 X-DOI: 10.1080/09535314.2022.2138271 File-URL: http://hdl.handle.net/10.1080/09535314.2022.2138271 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:36:y:2024:i:1:p:24-45 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_2188436_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Claudio Socci Author-X-Name-First: Claudio Author-X-Name-Last: Socci Author-Name: Marcello Signorelli Author-X-Name-First: Marcello Author-X-Name-Last: Signorelli Author-Name: Silvia D’Andrea Author-X-Name-First: Silvia Author-X-Name-Last: D’Andrea Author-Name: Stefano Deriu Author-X-Name-First: Stefano Author-X-Name-Last: Deriu Author-Name: Francesca Severini Author-X-Name-First: Francesca Author-X-Name-Last: Severini Title: The three plans by Biden: effects on economic growth and income inequality Abstract: The three budgetary plans under Biden’s presidency—the American Rescue Plan, the American Families Plan, and the American Job Plan–encompass a set of measures meant to expand investments, support production processes, stimulate private consumption, and protect the labor market through transfers, tax credits, production subsidies, and federal unemployment benefits. Thus, besides relieving the economic system, these plans aim to drastically reduce poverty. This study attempts to disentangle the direct, indirect, and induced economic effects generated by these plans in a well-defined time-lapse through a dynamic computable general equilibrium model based on the social accounting matrix for the US. This approach enables the simulation of shocks from both the demand and supply sides, as well as policies for income redistribution. The simulation scenarios’ results prove the plans’ effectiveness vis-à-vis economic growth and support to households, as well as the peculiar effects on income inequality. Journal: Economic Systems Research Pages: 70-99 Issue: 1 Volume: 36 Year: 2024 Month: 01 X-DOI: 10.1080/09535314.2023.2188436 File-URL: http://hdl.handle.net/10.1080/09535314.2023.2188436 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:36:y:2024:i:1:p:70-99 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_2272211_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Nina Knittel Author-X-Name-First: Nina Author-X-Name-Last: Knittel Author-Name: Max Tesselaar Author-X-Name-First: Max Author-X-Name-Last: Tesselaar Author-Name: W. J. Wouter Botzen Author-X-Name-First: W. J. Author-X-Name-Last: Wouter Botzen Author-Name: Gabriel Bachner Author-X-Name-First: Gabriel Author-X-Name-Last: Bachner Author-Name: Timothy Tiggeloven Author-X-Name-First: Timothy Author-X-Name-Last: Tiggeloven Title: Who bears the indirect costs of flood risk? An economy-wide assessment of different insurance systems in Europe under climate change Abstract: Anticipated increase in future river flood risk highlights the need for effective flood insurance, as it enables hedging against this risk. However, its design varies significantly across countries. This study contributes to the debate on designing flood insurance mechanisms from an economy-wide perspective, considering both socioeconomic and climate changes. We apply a multi-regional computable general equilibrium (CGE) model for 2050 and find that, under current insurance market systems, flood risk causes regional GDP losses of up to −0.5%, societal welfare losses of up to −1%, and private and public consumption losses of up to −0.5% and −2.4%, respectively. These estimates are all relative to a scenario without flood risk. Our results indicate that flood risk intensifies pressure on public budgets. We find that insurance market reforms, including a higher degree of risk-sharing, mandatory purchase requirements, and public reinsurance, can alleviate adverse welfare effects and the burden on public budgets. Journal: Economic Systems Research Pages: 131-160 Issue: 1 Volume: 36 Year: 2024 Month: 01 X-DOI: 10.1080/09535314.2023.2272211 File-URL: http://hdl.handle.net/10.1080/09535314.2023.2272211 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:36:y:2024:i:1:p:131-160 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_2215909_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Ran Huang Author-X-Name-First: Ran Author-X-Name-Last: Huang Author-Name: Haixin Wang Author-X-Name-First: Haixin Author-X-Name-Last: Wang Title: Asymmetric tail risk contagion across China’s automotive industrial chain: a study based on input–output network Abstract: The input-output network of an industrial chain provides a channel for risk transmission. Using Smooth-Transition Vector Autoregression model (STVAR) and Diebold-Yilmaz directional connectedness measures, we explore tail risk (extreme risk) contagion across China’s automotive industrial chain. We find significant spillover effects that are asymmetric in different phases of China’s business cycle, monetary cycle, and policy uncertainty. When China’s economy is in a recession, under a monetary expansion, or at a high level of policy uncertainty, the total risk spillover across the chain is higher. We also find apparent risk spillover from the financial services industries to the automotive industrial chain as China’s economy is in a recession or a monetary expansion period. Still, a reverse spillover is found as policy uncertainty is at a high level. Meanwhile, the direction of risk propagation across the automotive industrial chain may change with the transition in the economic state or policy uncertainty state. Journal: Economic Systems Research Pages: 161-190 Issue: 1 Volume: 36 Year: 2024 Month: 01 X-DOI: 10.1080/09535314.2023.2215909 File-URL: http://hdl.handle.net/10.1080/09535314.2023.2215909 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:36:y:2024:i:1:p:161-190 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_2159792_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Jan Oosterhaven Author-X-Name-First: Jan Author-X-Name-Last: Oosterhaven Title: Price re-interpretations of the basic IO quantity models result in the ultimate input-output equations Abstract: This note shows that Leontief's well-known demand-driven input–output (IO) quantity model may also be interpreted as the almost unknown revenue-pull IO price model, but measured in value terms instead of in prices. It is also shown how these two demand-driven models may be combined into a single ultimate demand-driven IO equation. An analogous result holds for the supply-driven quantity model and the cost-push price model, which results in a single ultimate supply-driven IO equation. The new price interpretation of the Leontief quantity model opens up hitherto unused possibilities to simulate interindustry demand-driven inflation processes, just as the price interpretation of the Ghosh quantity model enables simulations of supply-driven inflation processes. Journal: Economic Systems Research Pages: 191-200 Issue: 2 Volume: 36 Year: 2024 Month: 04 X-DOI: 10.1080/09535314.2022.2159792 File-URL: http://hdl.handle.net/10.1080/09535314.2022.2159792 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:36:y:2024:i:2:p:191-200 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_2213392_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Ana-Isabel Guerra Author-X-Name-First: Ana-Isabel Author-X-Name-Last: Guerra Author-Name: Ferran Sancho Author-X-Name-First: Ferran Author-X-Name-Last: Sancho Title: An extension of the hypothetical extraction method: endogenous consumption and the armington treatment of imports Abstract: The hypothetical extraction method (HEM) is the tool of choice for identifying underlying economic interdependencies. It provides critical information to policymakers regarding the strategic role of different sectors. However, the standard implementation of the HEM does not include the impact that falls on the price structure as a result of the substitution between domestic and imported products that takes place after the extraction of a sector or industry, in this case. We propose to overcome this limitation by extending the HEM using an Armington-Leontief model with endogenous consumption. Unlike the perfect substitution assumption typical of the standard HEM, the Armington assumption with endogenous consumption implies that the shift from domestic inputs to imports affects the cost functions. Therefore, both quantities and prices become endogenous in the ‘post-extraction' equilibrium. We also argue that HEM indicators should be expanded beyond the typical output-related indicators, i.e. value-added, employment, or pollutant levels, so that summary indices of the type more commonly used in economics, such as welfare indicators, are used. We implement this novel approach using the latest input–output data for Spain in 2016. Journal: Economic Systems Research Pages: 319-335 Issue: 2 Volume: 36 Year: 2024 Month: 04 X-DOI: 10.1080/09535314.2023.2213392 File-URL: http://hdl.handle.net/10.1080/09535314.2023.2213392 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:36:y:2024:i:2:p:319-335 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_2204393_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Kurt Kratena Author-X-Name-First: Kurt Author-X-Name-Last: Kratena Title: Effective demand, wages and prices, and the multiplier Abstract: The calculation of multipliers is the core of impact analysis with input–output (IO) models. Given this focus of IO modeling on the multiplier, it is remarkable that IO analysis has not contributed to the recent macroeconomic debate on fiscal multiplier heterogeneity. This heterogeneity stems from differences in consumption reactions to income shocks and from downward wage rigidity. Both features are absent in most IO models. In this paper, a macroeconomic IO model with a wage function is set up, where at high unemployment rates, downward wage rigidity allows for large real income and multiplier effects. At full employment, demand shocks mainly induce price adjustments. The model reveals GDP multiplier heterogeneity in line with the recent macroeconomic literature, ranging from 0.3 (boom) to 1.4 (recession). The GDP multiplier result of the standard type II model even outperforms the multiplier in the recession case and therefore is most probably biased. Journal: Economic Systems Research Pages: 226-248 Issue: 2 Volume: 36 Year: 2024 Month: 04 X-DOI: 10.1080/09535314.2023.2204393 File-URL: http://hdl.handle.net/10.1080/09535314.2023.2204393 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:36:y:2024:i:2:p:226-248 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_2157249_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Luis Tormo García Author-X-Name-First: Luis Author-X-Name-Last: Tormo García Author-Name: Paz Rico Belda Author-X-Name-First: Paz Rico Author-X-Name-Last: Belda Author-Name: Francisco Morillas Jurado Author-X-Name-First: Francisco Author-X-Name-Last: Morillas Jurado Author-Name: Bernardí Cabrer-Borrás Author-X-Name-First: Bernardí Author-X-Name-Last: Cabrer-Borrás Title: A new approach to the hypothetical extraction method: regional full extraction Abstract: This paper proposes a generalisation of the regional extraction method used by Dietzenbacher at el. [(1993). The regional extraction method: EC input–output comparisons. Economic System Research, 5(2), 185–206. https://doi.org/10.1080/0953-5319300000017]. The production system represented by an input–output table is broken down into three flow matrices: intermediate input, final demand, and value added. The approach of Dietzenbacher et al. (1993) focuses on the input matrix to obtain both the backward and forward dependencies. The present paper, offers an alternative approach includes the final demand matrix to calculate the backward dependencies, while the value-added matrix is included for the forward dependencies. These two approaches are then compared by applying them to the empirical data based on the EUREGIO database. The results indicate that the Dietzenbacher et al. approach underestimates the dependencies, and the difference between these two approaches could lead to a different ranking of the dependence of the regions. Journal: Economic Systems Research Pages: 292-318 Issue: 2 Volume: 36 Year: 2024 Month: 04 X-DOI: 10.1080/09535314.2022.2157249 File-URL: http://hdl.handle.net/10.1080/09535314.2022.2157249 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:36:y:2024:i:2:p:292-318 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_2137008_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Aleix Altimiras-Martin Author-X-Name-First: Aleix Author-X-Name-Last: Altimiras-Martin Title: A supply-driven model consuming simultaneously all primary inputs: unfolding analytical potential beyond the Ghosh model Abstract: The Ghosh model fails to endogenise the simultaneous consumption of primary inputs and, consequently, is unused. It is argued that this limitation stems from being specified mirroring the Leontief model. In particular, primary inputs are considered homogeneous and independent despite being heterogeneous and (intersectorally) dependent. A new supply-driven model endogenising the consumption of all primary inputs except the one driving the model is developed. It displays new features: structural linearity and structural variability. An input multiplier analysis illustrates that the new model's total requirements matrix represents the actual structure of the economy, overcoming the Ghosh model's ‘limitation’. Also, it is exemplified how to use complementary information from the Ghosh model to deepen structural analyses. Thus, this paper solves a long-lasting theoretical inconsistency in IO modelling and unfolds new analytical potential, hopefully rekindling the interest in supply-driven analyses. Journal: Economic Systems Research Pages: 249-264 Issue: 2 Volume: 36 Year: 2024 Month: 04 X-DOI: 10.1080/09535314.2022.2137008 File-URL: http://hdl.handle.net/10.1080/09535314.2022.2137008 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:36:y:2024:i:2:p:249-264 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_2170217_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Fernando de la Torre Cuevas Author-X-Name-First: Fernando Author-X-Name-Last: de la Torre Cuevas Author-Name: Xesús Pereira Author-X-Name-First: Xesús Author-X-Name-Last: Pereira Author-Name: Edelmiro López-Iglesias Author-X-Name-First: Edelmiro Author-X-Name-Last: López-Iglesias Title: A new alternative for matrix balancing under conflicting information Abstract: Balancing input–output tables using iterative proportional fitting techniques can be prevented due to conflicting information. What is to be done in such cases? Literature suggests a wide variety of alternative methods. Within iterative proportional fitting techniques, modifying the constraint set to circumvent conflicting information problems has been suggested as a promising avenue. Following this approach, we identify some opportunities for improvement not yet been addressed. As a result of this research, we present an iterative proportional fitting variant. Our algorithm uses information contained in the matrix to be balanced for dynamically modifying our constraint set. We ensure economically meaningful solutions, avoiding unsought sign flips. We also respect all macroeconomic aggregates. To illustrate our findings, we provide an empirical example based on the supply-use tables for the region of Galicia (Northwest Spain). Results suggest that our methodological proposal can yield estimates almost as accurate as other alternatives while avoiding undesired outcomes. Journal: Economic Systems Research Pages: 265-291 Issue: 2 Volume: 36 Year: 2024 Month: 04 X-DOI: 10.1080/09535314.2023.2170217 File-URL: http://hdl.handle.net/10.1080/09535314.2023.2170217 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:36:y:2024:i:2:p:265-291 Template-Type: ReDIF-Article 1.0 # input file: CESR_A_2164179_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Louis de Mesnard Author-X-Name-First: Louis Author-X-Name-Last: de Mesnard Title: Input-output price indexes: forgoing the Leontief and Ghosh models Abstract: In input-output analysis, the Leontief and Ghosh models can be used to determine the price indexes of goods, which is convenient for analyzing inter-industry inflation. Their respective merits are debated, but both provide the same solution. We demonstrate that, contrary to common belief, it is superfluous to use the Leontief or Ghosh model to calculate price indexes: the price index vector alone satisfies the accounting identities without assuming constant coefficients. So, in contrast to the Leontief and Ghosh models, price indexes can be derived ‘instantly’, without a round-by-round process. Conducting research on price indexes deduce from the Leontief or Ghosh model becomes pointless: it suffices to study price indexes deduced from the data. We illustrate these findings with an application for France 2018. The same is demonstrated for prices with the data given in physical quantities. Journal: Economic Systems Research Pages: 201-225 Issue: 2 Volume: 36 Year: 2024 Month: 04 X-DOI: 10.1080/09535314.2022.2164179 File-URL: http://hdl.handle.net/10.1080/09535314.2022.2164179 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:ecsysr:v:36:y:2024:i:2:p:201-225