# Tag Info

5

National Statistical Institutes do still compile IO tables (see http://ec.europa.eu/eurostat/web/esa-supply-use-input-tables for EU versions, although these are 5-yearly as well). They're generally more interested in producing the Supply and Use tables (which are then transformed into input-output tables) due to their usefulness in balancing the 3 measures ...

5

Quick answer, as I'm on my phone, but product by product input output tables can be obtained from Eurostat for EU countries, and are probably your best bet. Individual countries may have more detail from their own National Statistical Institutes' websites. The production functions in these are derived under some fairly strong assumptions, though, and you'...

2

Something you didn't mention is that $x = Ax + y$ means that to produce one unit of $x$, you use $A$ unit of $x$. E.g. you need electricity to produce electricity. Under the condition that $1>|A|\geq0$ $(1-A)^{-1} = \sum_{k=0}^\infty A^k$ Which allows us to write $x = Ly = \left(\sum_{k=0}^\infty A^k \right)y$ Thus, for one unit of $y$, your (...

2

I am not sure exactly what you divided by what, but suppose your input-output table looks like this: $$A = \left[ \begin{array}{lll} a_{11} & a_{12} & a_{13} \\ a_{21} & a_{22} & a_{23} \\ a_{31} & a_{32} & a_{33} \end{array} \right]$$ If you proceed to divide the first column by $\sum\limits_i a_{i,1}$ the second by $\sum\limits_i ... 1 I`d propose you to follow these steps: Set up the minimization cost problem (i.e. for a given output quantity$yminimize costs): \begin{align} \min_{H,L,K}& \quad sH + wL + rK \tag{1} \label{1}\\ \text{such that} &\quad \min\{H,L\} + \min\{H, K\}\geq y \tag{2} \label{2} \end{align} In principle you have 3 cases, depending on price of factors(s,...

1

Start with definitions: Production (possibilities) set: $Y$ which you know is convex Input requirement set: $V(y)=\{\mathbf{x}:(y,−\mathbf{x})∈Y\}$ On page 7. you can see: $\mathbf{y}\in Y$ and $\mathbf{y'} \in Y$ which then implies $t\mathbf{y}+(1-t)\mathbf{y'} \in Y$. Hint 1: What does it mean that $Y$ is a convex set? Okay, but what does that ...

1

What intuition can the mathematical concept of an inverse (function, matrix) have? In a single-input monotonic production function $F(x) = q \implies x= F^{-1}(q)$ the operator $F^{-1}$ is the transformation mechanism that translates output to required input. A "change of units" calculator if you wish. Isn't this what $(I-A)^{-1}$ does in the case of the ...

1

Quasi-fixed labour costs are typically those associated with the number of workers rather than the number of hours they work, so things like recruitment costs training costs Commonly they are seen as fixed costs in the short run, but marginal costs in the long run. Other non-labour costs which have the same short run / long run distinction can also be ...

1

The key to the answer is good data on Capital. There is a project (KLEMS), which is computing harmonised (i.e. comparable) information on capital, labour, energy, etc for many countries. At the moment it has information mainly on developed countries, but data for more developing countries are coming up. For example, this is a calculation of the capital-...

1

Your conjecture seems unlikely. For example the unit matrix would show an economy where no new goods can be produced (it takes 1 unit of something to make 1 unit of that same thing). Yet the determinant of this matrix is 1. If we were to multiply the $3 \times 3$ unit matrix by say 10, the new determinant would be a 1000. But the economy did not get better, ...

1

All right kids. You gave me the answer when Dismalscience wrote "this is still not a problem as long as the value of the good produced differs from the sum of the value of its inputs" ... actually, one of the branches had a complete set of zeros in the input table exept for one input and a zero in terms of production ... and another one had a complete set ...

1

I didn't divided each column by the sum of the column. This would make no sence since the goal is to produce a technical coefficient matrix that links each input (row) needed by the industry (column) in order to produce their output. I divided each element of the input-output table by the total output of the branch, according to the method presented in ...

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