The problem of negatives in input-output analysis: a review of the solutions

The main models to construct technical coefficients are the industry technology model and the commodity technology model. The former yields nonnegative coefficients and the latter fulfills nice theoretical properties, such as price invariance. Although the models are very different, this paper presents a flexible formula that encompasses both of them. Various solutions to the problem of negatives of the commodity technology model-including replacements by industry technology based coefficients-are reviewed in our framework.Input-output analysis; technical coefficients; use and make matrices

A note on the use of supply-use tables in impact analyses

Little attention has so far been paid to the problems inherent in interpreting the meaning of results from standard impact analyses using symmetric input-output tables. Impacts as well as drivers of these impacts must be either of the product type or of the industry type. Interestingly, since supply-use tables distinguish products and industries, they can cope with product impacts driven by changes in industries, and vice versa. This paper contributes in two ways. Firstly, the demanddriven Leontief quantity model, both for industry-by-industry as well as for product-by-product tables, is formalised on the basis of supply-use tables, thus leading to impact multipliers, both for industries and products. Secondly, we demonstrate how the supply-use formulation can improve the incorporation of disparate satellite data into input-output models, by offering both industry and product representation. Supply-use blocks can accept any mix of industry and product satellite data, as long as these are not overlapping

A use-side trade margins matrix for the Andalusian economy

According to the National Accounting Systems proposed by United Nations (1993) and Eurostat (1996), use and make (or supply) matrices should be measured before goods and services are conveyed to the markets (basic values). Actually, the make table is defined in basic values (excluding trade and transport margins and net commodity taxes) whereas the use table is in purchasers' values (including them). This paper shows how these margins and taxes can be removed from the use table with the purpose of entering both of them in the so-called material balance equation. With respect to trade margins, our approach is based on the use-side procedure from the ESA-95 Input-Output Manual (Eurostat, 2002) and is also being applied to the forthcoming 2000 Andalusian Input-Output Framework.Input-output analysis, use and make matrices, trade margins, National Accounts

Rural-urban social accounting matrixes for modelling the impact of rural development policies in the EU

This report complements previous work and builds NUTS3 SAMs for twelve regions, following a careful approach, that we call the expert approach. This report investigates the results of this approach by running some simple policy simulations and providing the structural descriptions of these regions. Further, this report aims at producing testing a more automatic approach to the construction of NUTS3 SAMs, to a view of reducing the necessary time and data requirements. Using several examples, this report examines whether such automatic approach can provide reliable SAMs at NUTS3 level. It finally draws conclusions as to the usefulness of both approaches in providing tools for further policy analysis in the field of rural development policy analysisJRC.J.4-Agriculture and Life Sciences in the Econom

A multi-regional input-output analysis of ozone precursor emissions embodied in Spanish international trade

Higher levels of ozone in the troposphere is a severe threat to both environment and human health. Many countries are concerned about the effects that critical levels of ozone have on them. Countries pollute to satisfy their domestic and external demand (production perspective) and, at the same time, these countries also generate emissions abroad indirectly via their imports and via their domestic production (consumption perspective). Spain is one of the EU countries with the highest pollution records in the emissions of tropospheric ozone precursor gases. A multiregional input-output model (MRIO) allows us to analyze the total emissions embodied in Spanish international trade in 35 sectors within the EU area and the rest of the world. MRIO models, are commonly chosen as they provide an appropriate methodological framework for complete emissions footprint estimates at the national and supranational level The results show that the most polluting sectors involved in Spanish trade are Agriculture, Basic Metals, Coke and Refined Petroleum Production. Some policy recommendations follow these results; for example, a higher number of environmental regulations focused on the Agricultural sector, such as the introduction of codes of good practices in the use of fertilizers and the promotion of cleaner production technologies might lead to less burden to the environment.Ministerio de economía y competitividad (España) ECO 2014-56399-R. Claves para Desacoplar Crecimiento y Emisiones de Co2 en EspañaCátedra de economía de la energía y del medio ambiente (Universidad de Sevilla)Fundación Roger TornéJunta de Andalucía. SEJ 13

European exports 2000-2007: direct and indirect effects on employment and labour income in the EU-27 and euro area

Between 2000 and 2007 more than two thirds of the embodied employment in European exports was due to manufactured products, while financial and real estate services showed the largest embodied labour income per person employed in exports activities, both in the European Union (EU-27) and in the euro area. At the end of the period (2007), the embodied labour income per person directly or indirectly employed in exports activities was 12 % higher in EA than in EU-27. During 2000-2007, the labour intensity of exports has dropped in both, EU-27 and EA, however to lesser extend in the EA.JRC.J.5-Sustainable Production and Consumptio

A note on the use of supply-use tables in impact analyses

Little attention has so far been paid to the problems inherent in interpreting the meaning of results from standard impact analyses using symmetric input-output tables. Impacts as well as drivers of these impacts must be either of the product type or of the industry type. Interestingly, since supply-use tables distinguish products and industries, they can cope with product impacts driven by changes in industries, and vice versa. This paper contributes in two ways. Firstly, the demanddriven Leontief quantity model, both for industry-by-industry as well as for product-by-product tables, is formalised on the basis of supply-use tables, thus leading to impact multipliers, both for industries and products. Secondly, we demonstrate how the supply-use formulation can improve the incorporation of disparate satellite data into input-output models, by offering both industry and product representation. Supply-use blocks can accept any mix of industry and product satellite data, as long as these are not overlapping