scholarly journals Structural decomposition analysis with disaggregate factors within the Leontief inverse

2020 ◽  
Author(s):  
Kirill Muradov
Keyword(s):  
Ad Hoc ◽  
Numerical Test ◽  
Decomposition Analysis ◽  
Index Number ◽  
Structural Decomposition Analysis ◽  
Structural Decomposition ◽  
Index Number Theory ◽  
Leontief Inverse ◽  
Biased Estimates ◽  
Technical Coefficients

Abstract A trivial case in input-output structural decomposition analysis is a decomposition of a product of variables, or factors, where one factor is an inverse -- typically Leontief inverse -- of a sum of other factors. There may be dozens and hundreds of such factors that describe the changes in subsets of technical coefficients. The existing literature offers ambiguous guidance in this case. The solution that is consistent with the index number theory may be virtually infeasible. The simplified ad hoc solutions require the researcher to make arbitrary choices, lead to biased estimates and do not ensure the consistency-in-aggregation of factors. This paper reviews the ad hoc solutions to the said problem and describes a numerical test to identify the best-performing solution. It is found that calculating the average of the two polar decomposition forms for each factor is superior to other approximations in terms of minimising the errors.

scholarly journals Structural decomposition analysis with disaggregate factors within the Leontief inverse

2021 ◽  
Vol 10 (1) ◽  
Author(s):  
Kirill Muradov
Keyword(s):  
Ad Hoc ◽  
Numerical Test ◽  
Decomposition Analysis ◽  
Index Number ◽  
Structural Decomposition Analysis ◽  
Structural Decomposition ◽  
Index Number Theory ◽  
Leontief Inverse ◽  
Biased Estimates ◽  
Technical Coefficients

AbstractA trivial case in input–output structural decomposition analysis is a decomposition of a product of variables, or factors, where one factor is an inverse—typically, Leontief inverse—of a sum of other factors. There may be dozens and hundreds of such factors that describe the changes in subsets of technical coefficients. The existing literature offers ambiguous guidance in this case. The solution that is consistent with the index number theory may be virtually infeasible. The simplified ad hoc solutions require the researcher to make arbitrary choices, lead to biased estimates and do not ensure the consistency-in-aggregation of factors. This paper reviews the ad hoc solutions to the said problem and describes a numerical test to identify the best-performing solution. It is found that calculating the average of the two polar decomposition forms for each factor is superior to other approximations in terms of minimising the errors.

scholarly journals Measuring Technological Change through an Extended Structural Decomposition Analysis: An Application to EU-28 Primary Sectors (2010–2015)

Economies ◽  
2022 ◽  
Vol 10 (1) ◽  
pp. 15
Author(s):  
Xesús Pereira-López ◽  
Małgorzata Anna Węgrzyńska ◽  
Napoleón Guillermo Sánchez-Chóez
Keyword(s):  
Technological Change ◽  
Decomposition Analysis ◽  
Typical Characteristic ◽  
Input Output ◽  
Structural Decomposition Analysis ◽  
Structural Decomposition ◽  
Analysis Techniques ◽  
Factors Associated ◽  
Leontief Inverse ◽  
Satisfactory Manner

This paper addresses the input–output structural decomposition for an economic analysis. The objective is to determine the causes of changes in production in these sectors with a particular focus on disaggregating the technological change by distribution factors associated with a specific normalization of the Leontief inverse. In calculating the net multipliers, an attempt was made to exclude each sectors’ own consumption in a satisfactory manner. However, the treatment of own consumption when introducing a time factor requires further investigation to avoid questionable measurements. An empirical application is presented regarding agriculture, forestry, and fishing sectors in six EU-28 countries (Austria, Belgium, France, Germany, Italy, and Spain) over the 2010–2015 period. In general, a typical characteristic of primary sectors is the accumulation of a significant amount of their own consumption, facilitated by the design of their own symmetric accounting methods. Therefore, attention is focused on these sectors so as to reveal possible analysis techniques that will provide nuance or validate existing techniques.

scholarly journals Research on China’s embodied carbon import and export trade from the perspective of value-added trade

PLoS ONE ◽  
2021 ◽  
Vol 16 (11) ◽  
pp. e0258902
Author(s):  
Guangyao Deng ◽  
Fengying Lu ◽  
Xiaofang Yue
Keyword(s):  
Emission Reduction ◽  
Decomposition Analysis ◽  
Value Added ◽  
The United States ◽  
Export Trade ◽  
Structural Decomposition Analysis ◽  
Structural Decomposition ◽  
Embodied Carbon ◽  
Production And Consumption ◽  
Import And Export

The development of globalization has separated the production and consumption of products spatially, and the international trade of products has become a carrier of embodied carbon trade. This paper adopted the perspective of value-added trade to calculate the amount of embodied carbon trade of China from 2006 to 2015 and perform a structural decomposition analysis of the changes in China’s embodied carbon trade. This study found that: (1) China’s embodied carbon exports are much larger than its embodied carbon imports, and there are differences between countries. China imported the largest amount of embodied carbon from South Korea, and it exported the largest amount of embodied carbon to the United States. (2) The structural decomposition analysis shows that changes in the value-added carbon emission coefficient during the study period would have caused China’s embodied carbon trade to decrease, and changes in value-added trade would have caused China’s embodied carbon trade to increase. Therefore, countries trading with China need to strengthen their cooperation with China in energy conservation, emission reduction, and product trade. In order to accurately reflect China’s embodied carbon trade, it is necessary to calculate embodied carbon trade from the perspective of value-added trade.

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