A.E. Steenge

The Regional Extraction Method: EC Input–Output Comparisons

This paper presents a method for quantifying inter-regional linkages on the basis of a many-region input—output table. The extraction method proposed can be seen as an extension of Strasserts hypothetical extraction method. Instead of extracting one sector from a sector-based model, the effects of hypothetically extracting a region from a many-region model are considered. It is shown that the method calculates so-called backward linkages. Forward linkages are obtained analogously from the matrix of allocation coefficients. The method is applied to intercountry linkages for the EC in the years 1970 and 1980.

The Commodity Technology Revisited: Theoretical Basis and an Application to Error Location in the Make-Use Framework

In this paper we provide conditions for the existence of non-negative homogeneous matrices of dimensions commodity × commodity or industry × industry in the SNA framework. These matrices are shown to satisfy all conditions underlying the commodity technology model. We point out that because the matrices exist even in the case of pure byproducts the identification of their columns as commodity specific limitational production functions is not straightforward and will require additional research on the role of fixed coefficients assumptions. In the second part of the paper we discuss a method to actually calculate these non-negative matrices via a systematic search of possible sources of inaccuracy in the basic make and use tables. The method is applied to aggregated tables for the USA, where a non-negative matrix is generated in a small number of steps. We show that the failure of present day statistical optimization methods may be due to a priori reliability estimates being off by hundreds of percent. Our main conclusion is that search methods attuned to the (labour intensive) way in which most input-output tables are compiled are most promising in error location in this field.

Input-output theory and institutional aspects of environmental policy

National accounting over the years has developed in close interaction with input–output analysis. However, present developments involving core and satellite accounts seem to suggest that this relation will become less close, with possible negative consequences for analysis and policy. In this paper we show that also in the new frameworks the input–output (I–O) table will most likely retain its central place. To illustrate this, we discuss the problem of the choice of policy background principles in environmental pollution abatement. We show that in the case of physical accounts of the NAMEA-type the question of the origin of environmental pollution can be addressed in a novel way. This suggests alternative definitions of the concept of ‘a polluter’, and new rules for the allocation of social cost.

On direct estimation of initial damage in the case of a major catastrophe: derivation of the “basic equation”

Input‐output analysis (I‐O) is increasingly used in studies of sudden catastrophes such as earthquakes, hurricanes, or, in the case of The Netherlands, major flooding. Unfortunately, in catastrophe analysis, there is no general consensus over the points of departure. Therefore, we need a basic notion of “where to start from”. One task the I‐O modeller faces after the disaster is to construct a plausible basis for the recovery and reconstruction efforts. Here the literature has developed the concept of the so‐called event matrix. The event matrix is an I‐O compatible matrix that traces the development of the situation at selected intervals after the catastrophe and during the reconstruction phase. However, the concept of I‐O on the basis of a well‐founded “event matrix” theory is still developing. It is the purpose of this paper to put forward a specific point of departure in disaster analysis, starting from I‐O fundamentals and introducing the concept of a “basic equation” as a necessary first step in the construction of an event matrix.

Thinking about Imbalances in Post-catastrophe Economies: An Input-Output based Proposition

Abstract In this paper we focus on the consequences of a major catastrophe for a modern economy, where ‘major’ means that a significant part of the economys productive capacity is lost. In the aftermath of the catastrophe, authorities have to address a great number of issues. We show, using basic principles, that input–output methodology offers a flexible set of tools to address three fundamental issues: (1) obtaining a systematic insight in the imbalances that exist in the non-affected area after the catastrophe, (2) determining the nature of these imbalances and the way they affect options in the recovery process, and (3) introducing the elements of a cost-benefit analysis in the context of prevention and precautionary policies. Our approach strongly supports the need for extensive contingency planning in the presence of major natural hazards. A numerical example accompanies the various steps of the exercise.

Sraffa and Goodwin: A Unifying Framework for Standards of Value in the Income Distribution Problem

In this paper we show that direct links exist between Sraffian and Goodwinian methodologies in income distribution theory. In fact, Sraffas Standard commodity approach and Goodwins transformation of axes are shown to be different manifestations of the same structural approach. Both are brought under a unified framework in terms of transformations involving a transformation matrix of rank one. To obtain transparency Sraffa is shown to retain as much interdependency as possible while Goodwin sacrifies all interdependent structure. It appears that a central role is played by models related to closed models of input-output type.

TOURISM STUDIES AND INPUT–OUTPUT ANALYSIS: INTRODUCTION TO A SPECIAL ISSUE

Tourism is increasingly important as a rapidly globalizing industry, which influences economic growth and development in many countries. This importance is recognized by international agencies such as the United Nations Statistics Division, Eurostat, the OECD and UNWTO (the World Tourism Organization). These institutes cooperated on common conceptual frameworks for the design of so-called Tourism Satellite Accounts (TSAs). According to the foreword of the joint publication Tourism Satellite Account: Recommended Methodological Framework 2008:

On Background Principles for Environmental Policy: “Polluter Pays”, “User Pays” or “Victim Pays”?

One of the first authors to draw our attention to the problem of social costs was A.C. Pigou (1920). Pigou observed that product prices often do not cover the costs of pollution and resource exploitation associated with production. Because of this, the economy may, from a welfare-oriented point of view, produce a wrong mix of polluting and non-polluting goods and services. Pigou argued that the polluter should be the prime accountable agent, and that he, in order to obtain “true” prices, should be encouraged to internalize the costs associated with production externalities. If for certain reasons internalization would not be realized, the government should impose a system of taxes and charges on the polluter representing the external costs of his action.

TOURISM MULTIPLIERS FOR A SMALL CARIBBEAN ISLAND STATE; THE CASE OF ARUBA

In this paper, we study the importance of tourism for Aruba, a small Caribbean island state within the Kingdom of The Netherlands. We present an input–output table based on the National Accounts and the Tourism Satellite Account for Aruba, with inbound tourism explicitly included, for the year 1999. Several types of multipliers are discussed. Each multiplier is relevant within a particular framework, but the choice between them is not always obvious. This paper tries to clarify a number of issues in their usage as they present themselves in the context of the study of tourism in Aruba.

Governance of Innovation

Contents: 1. Governance of Innovation Maarten J. Arentsen, Wouter van Rossum and Albert E. Steenge 2. Re-inventing Innovation Pierre-Benoit Joly, Arie Rip and Michael Callon 3. Investing in Knowledge: Knowledge, Human Capital and Institutions for the Long Run Growth Daniele Schiliro 4. Universities, Patenting and Multiple Markets Wouter van Rossum 5. The Firm as a Nexus of Product Cycles: Organising Intrapreneurship in the Innovative Firm Atle Midttun and Nils-Otto A rjasater 6. Innovation, Herd Behaviour and Regional Development G.C. Geerdink, P.J. Stauverman and A.E. Steenge 7. Do the Innovation Clusters Pay-off Yoram Krozer 8. Innovation of Governance: The Case of Emissions Trading Jan-Peter VoA