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

Abstract

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