Document Type
Working Paper
Publication Date
10-12-2020
College/Unit
Regional Research Institute
Document Number
2020-06
Department/Program/Center
Regional Research Institute
Abstract
Leontief and Stone both received Nobel Prizes in Economics for development and extension of input-output (IO) analysis, a framework that has gained little traction in mainstream U.S. economics. Although IO modeling has gained renewed focus in several problem domains, many contemporary economists eschew Stone's enhancements, resulting in inconsistent analytics, even in top economics journals. In this paper, we use an increasingly common approach to value chain analysis as one example that demonstrates such conceptual misunderstandings and by presenting properly formulated alternatives, we demonstrate the extent of the consequences of neglecting the Stone enhancements and important role of reproducing results.
Digital Commons Citation
Jackson, Randall W. and Aroca, Patricio, "Commodities are Not Industries! A Value Chain Example" (2020). Regional Research Institute Working Papers. 219.
https://researchrepository.wvu.edu/rri_pubs/219