Social and Behavioral Sciences Commons^™

Commodities Are Not Industries! A Value Chain Example, Randall W. Jackson, Patricio Aroca

Regional Research Institute Working Papers

Leontief and Stone both received Nobel Prizes in Economics for development and extension of input-output (IO) analysis, a framework that has gained little traction in mainstream U.S. economics. Although IO modeling has gained renewed focus in several problem domains, many contemporary economists eschew Stone's enhancements, resulting in inconsistent analytics, even in top economics journals. In this paper, we use an increasingly common approach to value chain analysis as one example that demonstrates such conceptual misunderstandings and by presenting properly formulated alternatives, we demonstrate the extent of the consequences of neglecting the Stone enhancements and important role of reproducing results.

Value Chains: Production Upstreamness And Downstreamness Revisited, Patricio Aroca, Randall Jackson

Regional Research Institute Working Papers

Measures devised to quantify value chain position have been used increasingly in recent years. While the constructs underlying these measures are meaningful, this paper identifies an overlooked implementation problem. Proposed algorithms have been applied as though the underlying data represent flows. Implementation data are drawn from modern input-output accounting frameworks that recognize secondary production explicitly. Unadjusted Use matrices are not conventional flows matrices because they do not identify the industries from which commodities originate. We demonstrate logical inconsistencies that arise, provide correct flow matrix formulations for upstreamness and downstreamness measures, and present empirical comparisons of correct and incorrect formulations.

Disaggregating Input-Output Models, Xueting Zhao

Regional Research Institute Technical Documents

This Technical Document describes the steps to disaggregate an industry sector in an I-O table using Python. A disaggregation method that based on weight factors is used in this document. The calculation has three parts. The first part is to calculate the disaggregated input matrix DIM, which represents all the input from common sectors into the new sectors. The second part is to calculate the disaggregated output matrix DOM, which represents all possible output weights of new sectors into common sectors. The last part is to calculate the intra matrix DINM, which represents the allocation of intra-industry sales in the …

Estimation Of China Sectoral Emission Intensity: Based On Input-Output Model, Xueting Zhao

Regional Research Institute Resource Documents

No abstract provided.

An Aggregation Matrix Matlab Function, Caleb Stair

Regional Research Institute Technical Documents

This Technical Document describes the foundations for an aggregation matrix function implemented in MATLAB, including the format and structure of the required aggregation vector used as an argument to the function. The function is passed with the Ndimensional aggregation vector as an argument. The aggregation vector contains N values ranging from 1 to M, each of which is the aggregate index corresponding to the N preaggregation indices. The function returns an aggregation matrix with M rows and N columns. Pre-multiplying an existing matrix with N rows by the aggregation matrix reduces the row dimensionality from N to M by adding …

Composite Input-Output Production Functions, Randall Jackson

Regional Research Institute Technical Documents

This document describes the algorithm used for creating an aggregated linear production function for an industry by weighting subsector production functions. The result can be used as a column in an interindustry (I ×I) coefficients table or in a standard Use table (C × I) depending on the units (C or I) of the input data.

Time Dynamics And The Introduction Of New Technologies Within Io Analysis, Christa D. Jensen, Randall Jackson

Regional Research Institute Working Papers

Although Input-Output (IO) models are widely accepted tools for regional scientists and economists alike, there are still many issues to confront during their application, including estimating impacts relative to future years, dynamic impacts, and the introduction of new technologies within economic systems. Oftentimes, especially within energy and environmental subject areas, applications call for not only the introduction of new technologies but also for forecasts of economic impacts that may take years, or even decades, to fully implement. Despite the static nature of the IO modeling framework, these types of situations can be handled successfully and in ways fully consistent with …

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The Impacts Of Walter Isard On Geography, Randall Jackson

Regional Research Institute Working Papers

In the course of preparing this paper, which initially focused solely on identifying the impacts of input-output analysis on geography, a much broader perspective on the impacts of Walter Isard on geography ultimately emerged. In the tradition of input-output analysis, these impacts are grouped into direct, indirect, and induced effects, and summarized under the heading of influence. Walter Isard touched the lives of many through personal relationships, books and articles, and an energetic devotion to and enthusiasm for the creation of a regional science association. The Regional Science Association and its publications supported something of a greenhouse environment in which …