WASSILY LEONTIEF AND INPUT-OUTPUT ECONOMICS; ED. BY ERIK DIETZENBACHER

Wassily Leontief (1905–1999) was the founding father of input-output economics, for which he received the Nobel Prize in 1973. This book offers a collection of papers in memory of Leontief by his students and close colleagues. The first part, 'Reflections on Input-Output Economics', focuses upon Leontief as a person and scholar as well as his personal contributions to economics. It includes contributions by Nobel Laureate Paul A. Samuelson who shares his memories of a young Professor Leontief at Harvard and ends with the last joint interview with Wassily and his wife, to date previously unpublished. The second part, 'Perspectives of Input-Output Economics', includes theoretical and empirical research inspired by Leontief's work and offers a wide-ranging sample of the state of interindustry economics, a field Leontief founded. This is a strong collection likely to appeal to a wide range of professionals in universities, government, industry and international organizations. Cover......Page 1 Half-title......Page 3 Title......Page 5 Copyright......Page 6 Contents......Page 7 Contributors......Page 10 Figures......Page 13 Tables......Page 17 Preface......Page 21 Part I Reflections on input-output economics......Page 25 1. The Harvard background......Page 27 2. Early teaching......Page 28 3. Afterthoughts on input-output......Page 30 references......Page 31 2. Linking theory and applications......Page 33 3. The input-output model – the “magnificent machine”......Page 35 4. Automation......Page 37 5. Defense conversion......Page 38 6. Environment......Page 40 7. Foreign and interregional trade......Page 42 8. Spatial and world models......Page 45 references......Page 49 1. Historical background......Page 54 2. The model and the data......Page 57 3. Scenarios and results......Page 61 4. Looking backwards from 2000......Page 65 5. A tentative research agenda......Page 68 references......Page 69 1. Introduction......Page 71 2. The early work: Leontief as neoclassical theorist......Page 72 3.1 Establishing the Leontief Paradox......Page 73 3.3 Recent analyses of factor contents......Page 75 4. Later work: a new theoretical framework......Page 77 4.1 Critiques of Minhas and Chipman......Page 78 4.2 Theoretical status of bilateral trade......Page 79 4.3 The “World Model” as the framework for a theory of trade......Page 81 4.4 Models and theories......Page 83 5. Looking to the future: the analysis of scenarios......Page 85 references......Page 86 1. French problems at the end of World War II......Page 89 2. Nationalizing meant modernizing......Page 90 3. The spirit of the National Development and Equipment Plan......Page 93 4.1 The National Accounting System and national planning......Page 95 4.2 The growth rates of GNP and final demand......Page 96 4.3 The French input-output table......Page 97 4.4 The two forecasts for 1961......Page 100 5.1 Triangulation and the democratization of planning......Page 103 5.3 Are technology coefficients really “technology”?......Page 104 5.4 The role of semantics......Page 106 6. New attempts to improve the efficiency of the input-output table......Page 107 6.2 A new approach to technological forecasting......Page 108 7. Final remarks......Page 112 references......Page 113 1. Dynamics of the input-output system......Page 114 2.1 The “best practice” approach......Page 116 2.2 The RAS method......Page 117 2.3 The ex ante method......Page 118 3.1 Capital coefficients......Page 119 3.2 The taxonomy of dynamic models......Page 121 4.1 Regional and interregional theory......Page 122 5. A final word......Page 123 references......Page 124 1. Introduction......Page 126 2.1 Exploration, simulation, impact......Page 127 2.2 Spatializing input-output-based models: economies of scale and scope; externalities; non-convexities; and supply effects......Page 130 2.3 Combining input-output analysis and spatial econometrics: five more spatial elements......Page 132 2.4 General spatial economic equilibrium: introducing coordinates......Page 135 3. Extensions of input-output analysis......Page 137 3.1 Location elasticities......Page 138 3.2 Multiregional dynamics and growth......Page 141 4. Conclusion......Page 142 references......Page 143 1. Close but distant neighbors......Page 147 2. Richard Goodwin: cycles without innovation......Page 149 3. Eric Von Hippel: the sectoral locus of innovation......Page 151 4. Intellectual specialization and loci of insight......Page 154 references......Page 157 1. The context......Page 159 2. The interview......Page 160 3. Epilogue......Page 170 acknowledgements......Page 171 Part II Perspectives of input-output economics......Page 173 1. Introduction......Page 175 2. Earlier work......Page 176 4. Equilibrium and efficiency......Page 177 5. Efficiency and productivity......Page 181 6. Total factor productivity......Page 185 7. Input-output analysis of total factor productivity......Page 186 references......Page 188 1. Introduction......Page 190 2. Review of previous literature......Page 191 3. Accounting framework and skill measures......Page 193 4.1 The changing make-up of US exports and imports......Page 194 4.2 The factor content of US exports and imports......Page 195 4.3 R&D intensity of exports and imports......Page 201 4.4 Labor costs and labor productivity of exports and imports......Page 202 5. Conclusion......Page 205 6. Data appendix......Page 207 references......Page 209 1. Introduction......Page 212 2. Potential causes of declining labor shares in income......Page 213 3. Methodological aspects of structural decompositions......Page 216 4. Decomposing labor compensation’s share of value added......Page 219 5. Description of the data used......Page 223 6.1 Decomposition of the aggregate economy......Page 226 6.2 Decomposition by major sector......Page 229 7. Conclusion......Page 233 references......Page 234 1. Introduction......Page 237 2. The rivalrous consonance approach to oligopolistic decision-making......Page 238 3. The rivalrous consonance model in the Leontief price dual context......Page 239 5. Some illustrative simulations......Page 245 5.1 Sector profiles......Page 246 5.2 Case solutions......Page 247 6. The ease of comparative statics calculations......Page 252 7. Conclusion......Page 254 references......Page 255 1. Introduction......Page 256 3.1 Observations......Page 258 3.2 Estimation......Page 259 3.4 Capital-saving sectors......Page 263 3.6 Technology embodied in plants......Page 264 3.7 Unit cost minimization: the determination of optimum plant scale......Page 268 4. Measurement using a time-series analysis......Page 270 5. Enlargement of plant scale and structural change......Page 274 6. Concluding remarks......Page 278 references......Page 279 1. Introduction......Page 280 2.1 Static structure......Page 282 2.2 Dynamic inverse and dynamic structure......Page 283 3.1 Static unit TFP......Page 285 3.2 Dynamic unit TFP......Page 289 4.1 Data......Page 292 4.2 Capital coefficients......Page 294 4.3 Dynamic unit structure......Page 296 5.1 Static decomposition......Page 299 5.2 Dynamic decomposition......Page 308 references......Page 316 1. Introduction......Page 318 2. Japan’s medium-term planning and Leontief models......Page 319 3. Later developments of policy guidelines......Page 321 4.1 Purpose of the study and database......Page 322 4.2 The model......Page 323 4.3 The results......Page 324 4.4 Capacity output and the rate of operation......Page 326 5. Concluding remarks......Page 332 references......Page 333 1. Methodological issues......Page 335 2. Some properties of the US input-output accounts for 1972 to 1996......Page 338 3. KLEMI......Page 341 4.3 Stock of capital......Page 346 4.6 All intermediate B2B inputs, other than information technology service input......Page 347 5.1 Automobiles and parts......Page 348 5.2 Transportation equipment......Page 356 6. Summary remarks......Page 358 references......Page 360 1. The problem and our approach to it......Page 361 2.1 The accounting structure and data......Page 365 2.2 Equations from input-output identities......Page 366 2.3 Behavioral equations......Page 367 3. The bilateral trade model......Page 371 4. The base and alternative scenarios......Page 373 5. The effects of investment stimulus......Page 374 references......Page 390 1. Introduction......Page 391 2.1 Methodology......Page 393 2.2 A numerical example......Page 398 3. Intermediate or primary inputs?......Page 399 4. The role of Alpha......Page 404 5. The scope for policy......Page 406 6. Final remarks and conclusion......Page 407 references......Page 409 Subject index......Page 411 Author index......Page 417

Wassily Leontief was the founding father of input-output economics, for which he received the Nobel Prize in 1973. This book offers a collection of papers in his memory by his students and close colleagues. The first part focuses upon Leontief as an individual and scholar as well as his personal contributions to economics; the second includes new theoretical and empirical research inspired by Leontief's efforts. The collection offers a comprehensive sample of the current state of interindustry economics and is likely to appeal to a wide range of professionals.

Students and close colleagues offer a collection of papers in memory of Nobel Laureate Wassily Leontief. The first part focuses upon Leontief as a person and scholar as well as his personal contributions to economics, while the second part presents the latest theoretical and empirical research inspired by Leontief's work