Primary Versus Secondary Production Techniques in U.S. Manufacturing

In this paper we analyze the determinants of material inputs into individual production activities as a function of their outputs. We use observations on a large cross‐section of U.S. manufacturing plants from the Census of Manufactures, including those that make goods primary to other industries, to study differences in production techniques. We find that in most cases material requirements do not depend on whether goods are made as primary products or as secondary products. We thus elucidate support for the commodity technology model as a useful working hypothesis.