By Raa T. T.
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Additional resources for The Economics of Input-Output Analysis
1967). “An Alternative to Aggregation in Input-Output Analysis and National Accounts,” Review of Economics and Statistics 49 (3), 412–19; reprinted in W. Leontief, InputOutput Economics, Oxford, Oxford University Press, 2nd edn. (1986) Miyazawa, K. (1976). Input-Output Analysis and the Structure of Income Distribution, Heidelberg, Springer ten Raa, Th. and D. Chakraborty (1983). “A Note on Induced Multiplier,” Artha Vijnana 25 (3), 277–9 ten Raa, Th. and E. N. Wolff (2001). “Outsourcing of Services and the Productivity Recovery in US Manufacturing in the 1980s and 1990s,” Journal of Productivity Analysis 16, 149–65 Sandoval, A.
5). 8). 2 Inequality implications There is a close connection between linear programs and inequality implications. An inequality implication states that one set of inequalities implies another inequality. 1 A linear program can be designed in this framework. If a point is feasible, meaning that it fulfills the inequalities of the constraints, it is implied that the value of the linear function is less than or equal to the optimal value. 1 will reveal the structure of inequality implications, contains the seed of the Lagrange multipliers, and enable us to quickly derive the main results of the theory of linear programming.
Sector 1 is a better target if and only if v 1 /p1 exceeds (1 − v 1 )/p2 where the numerators represent the (relative) total employment multipliers and the denominators the prices. A low price buys you a lot. What are the prices? Because there are no material costs, prices are equal to value-added per unit: p1 = v 1 and p2 = v 2 . Hence sector 1 is a better target if and only if 1 > (1 − v 1 )/v 2 or v 2 > 1 − v 1 . 16). Although the inclusion of consumption effects may reverse the ranking of sectoral employment multipliers, a sector with the greatest production employment multiplier continues to be the best target for a fixed budget.
The Economics of Input-Output Analysis by Raa T. T.