Consistency and composite numeraires in joint production input-output analysis; an application of ideas of T.L. Saaty

In this paper we show that Saaty consistency analysis can be applied to problems in joint production input-output analysis. We discuss problems of merging use and make matrices into one matrix of input coefficients, either of commodity × commodity or industry × industry type. The Saaty approach we propose is shown to point to the U.N.'s commodity-technology method as the most appropriate among a number of competing constructs. Some evidence regarding the empirical relevance of the U.N.'s method is discussed

Compilation of input-output data from the national accounts

In this paper, a new method is presented to derive an input-output table from a system of make and use tables. The method, which we call 'activity technology', is mathematically equivalent to the well-known commodity technology, but chooses another unit, i.e. the activity. We will argue that, in the activity technology model, negatives can only arise from causes such as heterogeneity and errors in the data. To apply the activity technology, very detailed make and use matrices are required, as well as additional data on the input structures of certain activities. We will describe a method that can incorporate this additional data within the activity technology framework. Statistics Netherlands has adopted the method

A New Approach to Irreducibility in Multisectoral Models with Joint Production

We present a new approach to irreducibility in multisectoral models, based on an axiom on the vectors of total outputs and inputs. We derive new results in joint production models, including an interpretation of von Neumann's famous condition A + B > 0, where A and B are respectively matrices of input and output coefficients. Also, an application of the axiom to the commodity technology model is presented

Saaty's consistency analysis: An application to problems in static and dynamic input-output models

Saaty's priority analysis has given us a set of rules to assign weights (priorities) to a multiple of objects in a consistent way. The method has been shown to have great potential for economic application, especially in applied input-output work. In this paper we show that much stronger links exist between priority theory and input-output analysis than observed in the literature thus far. As we shall show, application of Saaty's instrumentarium to the Leontief framework opens the way for a new type of consistency analysis. In static models the dual output and price systems are shown to be consistent, in the sense that both can be described in terms of the same pairwise comparison matrix. In dynamic analysis, these dual systems are shown to be generally inconsistent, the only exception being the case of von Neumann growth

Letland in 1992: hoop, vrees en gevaren

De politiek onafhankelijk geworden gebieden van het voormalige Oostblok verwachten veel van de transformatie naar een markteconomie, maar lijken de eigen dynamiek van de in gang gezette processen nog niet te onderkennen

The decentralization of a sales support department in a medium-large company : A quantitative assessment based on ideas of Thomas L. Saaty and Stafford Beer

In this paper we discuss an integration of the Beer cybernetic oriented management theory and Saaty's hierarchical approach to assess management problems in a more quantitative way