Tuesday, March 22, 2011

IO Coefficients



I have another hard-working Ag grad student working with IO tables. She is working with the 2006 Medium and Link Levels, and would like the “labour coefficient(s?)” and the “capital coefficient(s?).

She is also asking if “land usage” enters into or is an element in the Tables.


Our contacts in the division that produces these I/O tables have provided the following response to the student's questions:

"The value of land does not enter into our I/O Tables and by definition, since land is a non-depreciable asset, it also does not factor into the I/O surplus indirectly either (depreciation charges for non-land assets for a given industry are conceptually measured in the I/O surplus).

We produce linear transformations of the I/O tables to calculate outputs resulting from a final demand shock – say exports) by means of an “impact” or multiplier matrix. From that model, we have “technology” and “market share” coefficients but many more coefficients may be calculated depending on specific formulas employed. Labour coefficients and capital coefficients may be available (or may be derived) but without the actual algebraic formula, we are blind.

Maybe you can have the student provide us with an actual formula that is of interest to them."

I will send you the coordinates of the person who sent us this information. This will allow the student to contact him directly if she wants to provide a more detailed description of the information she needs.

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