Michaelides, Panayotis G. and Belegri-Roboli, Athena and Markaki, Maria
(2012):
*A non-linear Leontief–type input-output model.*

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## Abstract

In this paper, we present an econometric model based on Leontief’s IInput–Output (IO) approach. In this context, the paper puts forward an econometric approach to estimating an IO Leontief – type coefficients matrix which has several advantages and constitutes an extension to the standard IO model. Analytically, the original model is a description of the situation when (i) linear relations express the production process of each sector, (ii) each sector experiences constant returns to scale, and (iii) the technical coefficients in the conventional IO table are fixed for several years and based on a-priori calculations using traditional survey methods made by practitioners, and not on econometric estimations using real–world data on economic aggregates. The proposed method’s main advantage is its simplicity, flexibility, and capability of including real-world information on economic aggregates that could also be used as a portion of a dynamic model. Measures such as Returns to Scale (RTS), Total Factor Productivity (TFP), and Technical Efficiency (TE) may be computed easily.

Item Type: | MPRA Paper |
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Original Title: | A non-linear Leontief–type input-output model |

Language: | English |

Keywords: | Leontief, input-output model, econometrics, RTS, TFP, TE |

Subjects: | C - Mathematical and Quantitative Methods > C0 - General > C01 - Econometrics C - Mathematical and Quantitative Methods > C0 - General > C02 - Mathematical Methods C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C60 - General C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C67 - Input-Output Models |

Item ID: | 74447 |

Depositing User: | Prof. Dr. Panayotis G. Michaelides |

Date Deposited: | 12 Oct 2016 07:30 |

Last Modified: | 26 Sep 2019 19:32 |

References: | Amemiya, Takeshi, "The Maximum Likelihood and the Nonlinear Three-Stage Least Squares Estimator in the General Nonlinear Simultaneous Equation Model," Econometrica, May 1977, pp. 955-975. Berndt, E. K., B. H. Hall, R. E. Hall, and J. A. Hausman, "Estimation and Inference in Nonlinear Structural Models," Annals of Economic and Social Measurement, October 1975, pp. 653-665. Davidson, R. and J. G. MacKinnon, Estimation and Inference in Econometrics, Oxford University Press, 1993. Gallant, A. Ronald, and Dale W. Jorgenson, "Statistical Inference for a System of Simultaneous, Non-linear, Implicit Equations in the Context of Instrumental Variable Estimation," Journal of Econometrics 11, 1979, pp. 275-302. Jorgenson, Dale W. and Jean-Jacques Laffont, "Efficient Estimation of Nonlinear Simultaneous Equations with Additive Disturbances," Annals of Economic and Social Measurement, October 1975, pp. 615-640. Theil, Henri, Principles of Econometrics, John Wiley and Sons, New York, 1971, pp. 508-527. Zellner, Arnold, and Henri Theil, "Three-Stage Least Squares: Simultaneous Estimation of Simultaneous Equations," Econometrica 30 (1962), pp. 54-78. |

URI: | https://mpra.ub.uni-muenchen.de/id/eprint/74447 |