The Choice of Model in the Construction of Input-Output Coefficients Matrices.

The construction of input-output coefficients on the basis of flow data is complicated by the presence of secondary outputs. Seven methods to deal with this problem coexist. For example, U.S. input-output requirement tables are based on the so-called industry technology model; Japan adopts the so-called Stone method; while West German tables are based on the so-called commodity technology model. This paper settles the issue on the ground of theory. It postulates invariance and balance axioms, and proceeds to characterize one of the methods to construct input-output coefficients. The commodity technology model is singled out. Copyright 1990 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.