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On the financial balance of input–output constructs: revisiting an axiomatic evaluation

Guillaume Majeau-Bettez, Richard Wood and Anders Hammer Strømman

Article (2016)

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Cite this document: Majeau-Bettez, G., Wood, R. & Strømman, A. H. (2016). On the financial balance of input–output constructs: revisiting an axiomatic evaluation. Economic Systems Research, 28(3), p. 333-343. doi:10.1080/09535314.2016.1166098
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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 Review 31, 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 Ecology 20, 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.

Uncontrolled Keywords

Coproduction, Allocation, Constructs, Life-cycle assessment, Financial balance

Open Access document in PolyPublie
Subjects: 1600 Génie industriel > 1600 Génie industriel
Department: Département de génie chimique
Research Center: CIRAIG - Centre international de référence sur le cycle de vie des produits, procédés et services
Funders: Norges teknisk-naturvitenskapelige universitet, Chaire Internationale sur le Cycle de Vie
Date Deposited: 31 Jan 2017 09:54
Last Modified: 24 Oct 2018 16:12
PolyPublie URL: https://publications.polymtl.ca/2444/
Document issued by the official publisher
Journal Title: Economic Systems Research (vol. 28, no. 3)
Publisher: Taylor & Francis
Official URL: https://doi.org/10.1080/09535314.2016.1166098

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