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

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.

Structural decomposition analysis with disaggregate factors within the Leontief inverse

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.

Economic impact of ischemic heart diseases in Brazil: comparison through the input-output matrix to the years 2006 and 2014

The purpose of the article was to measure the impacts caused by Ischemic Heart Diseases (IHD) on Brazilian GDP in 2006 and 2014. The effects of IHD were assessed by applying shocks applied to 56 sectors, in current values of the impact on income. The method used included information on the Disability Adjusted Life Years (DALY), developed by the World Health Organization (WHO) through the study of Global Illness Burden; and Leontief Inverse. The results showed that the direct impacts of the IHD on GDP in 2006 were approximately US$ 166 million and US$ 362 million in 2014, and direct and indirect impacts were US$ 800 million in 2006 and US$ 1.3 billion in 2014. The total economic impact exceeded those of US$ 919 million in 2006 and US$ 1.7 billion in 2014.

Applying the Virtual Input-Output Method to the Identification of Key Nodes in Busy Traffic Network

How to identify the key nodes effectively in urban traffic networks to achieve the equitable resource allocation face to the complex traffic network? This issue needs to be solved in current traffic management. This study considered the urban traffic network topology and network traffic status, put forward an improved model based on the economics of the input-output method by introducing a virtual node to the selected network set up with the flow of urban traffic network, sensor nodes by Leontief inverse matrix calculation coefficient to determine node importance, according to the node importance to deliberate attack traffic network to analyze its robustness, to test the accuracy and practicability of the method. The results show that this improved method adopted to measure the importance of traffic nodes from the global scope has the advantages of fast calculation and simple process and provides a more reliable basis for rational allocation of transport resources.

Structural decomposition analysis with disaggregate factors within the Leontief inverse

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.

Terciarización del sistema productivo ibérico: Rasgos diferenciales

This work aims to analyze the tertiarisation process of two neighbouring countries, Spain and Portugal, during the period 1995-2005. In this regard we pretend to find out if there are differences between the two productive systems as for the use of tertiary inputs or it is possible to talk about the “Iberian productive system.” It is also analyzed if different activities employ the same amount of tertiary inputs within their productive processes. These findings could be a key to explain the tertiarisation processes in both countries. The methodology that enables to quantify the level of tertiarisation of economies is based on the input-output analysis. The impact of services on user activities is appreciated by means of a series of effects that can be obtained through the technical coefficients and the Leontief inverse matrix.

Dampak Remitansi Tenaga Kerja Indonesia Terhadap Distribusi Pendapatan Rumah Tangga : Analisis Sistem Neraca Sosial Ekonomi Indonesia (SNSE) 2008

This study aims to analyze the impact of Indonesian workers’ remittances on income distribution of households, in which includes the total impact as well as the details of the road from the impact. The data used is the Social Accounting Matrix (SAM) of Indonesia in 2008. The methodology used is matrix multiplier balance with Leontief inverse analysis and details of the impact analyzed through decomposition of the matrix multiplier. The results of this study showed that the group of households that are affected most by the injection of remittances in the government sector is domestic agricultural entrepreneurs while the total impact on the production sector to get the most impact is the sector of Real Estate and Business Services sector, followed by trade.