1. On the financial balance of input–output constructs: revisiting an axiomatic evaluation.
- Author
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Majeau-Bettez, Guillaume, Wood, Richard, and Strømman, Anders Hammer
- Subjects
INPUT-output analysis ,LIFE cycles (Biology) ,WASTE products ,AGRICULTURE - Abstract
Financial balance is fundamental to input–output (IO) analysis, and consequently the respect of this balance is one of the dominant criteria in evaluating IO constructs. Kop Jansen, and ten Raa [(1990) The Choice of Model in the Construction of Input–Output Coefficients Matrices.International Economic Review31, 213] proved that the byproduct-technology construct (BTC) and the industry-technology construct (ITC) do not generally conserve financial balance. In contrast, Majeau-Bettez et al. [(2016) When do Allocations and Constructs Respect Material, Energy, Financial, and Production Balances in LCA and EEIO?Journal of Industrial Ecology20, 67–84] demonstrated that the BTC necessarily respects financial balance and that the ITC is always financially balanced when applied to data recorded in monetary units. The present article resolves this paradox. [ABSTRACT FROM AUTHOR]
- Published
- 2016
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