Estimation of a technology matrix from a domestic coefficients matrix and a row of intermediate imports in input-output analysis
This paper suggests several methods of estimating a technology matrix from a domestic transactions matrix, and a row vector of imports into each sector. The performance of the proposed techniques is assessed on the basis of tests using data on a large number of countries, for which both domestic and technology matrices exist. The best method is subsequently used to generate estimates of technology matrices for countries where such information has not previously been available, and as an illustration of a possible application of such estimates, a brief international comparison of production structures is attempted.
Tracing VARDI coefficients: a proposal
ABSTRACT We propose a new approach for tracing the so-called ‘value-added-(re)distribution-important coefficients’ (in short the VARDI coefficients) in a world input–output model. From the perspective of a selected group of economies, VARDI coefficients may be defined as those elements in world input–output matrix in the case of which a small change in their levels leads to the maximization of a share of this group of economies in value added in global value chains. Due to the rapid development of the World Input Output Database, this approach may be easily applied in empirical research to different groups of countries and sectors in world IO models. In an illustrative empirical case study, we use the new approach in order to answer a question regarding what the main directions of the future macroeconomic policy of the U.S. could be in order to ensure the maximization of the country’s share in global value added.
SCANNING EUROPEAN ADVANCES IN THE USE OF RECYCLED MATERIALS IN HIGHWAY CONSTRUCTION
Recycled materials that have suitable engineering, environmental, and economic properties can be used as substitutes for natural aggregates or materials in the construction of highway infrastructure. These recycled materials are either recovered materials from the transportation sector or secondary or byproduct materials from the industrial, municipal, or mining sectors. Since the 1970s, a number of countries in Europe have been routinely using recycled materials with a high degree of success. The most remarkable thing about the European experience is that the recycling rate of materials in the highway environment frequently reaches 100%. In recognition of recent developments on all levels and the growing interest within the U.S. highway community, a team of U.S. recycling practitioners visited Denmark, France, Germany, the Netherlands, and Sweden to observe research, policies, and programs promoting the use of recycled materials in the highway environment within those countries. Of particular interest to the scanning team were the economic, engineering, and environmental approaches that enable the high recycling rates and the successes seen in those countries. All of the countries had some sort of sustainability policy in which recycling was an integral part. The U.S. delegation is now working with their respective constituencies to promote recommendations from their summary and final reports. To further promote technology transfer and to start reducing barriers, a demonstration project is planned for the fall of 2000 in Houston, Texas.