This article proposes a new method to compute the real value‐added of industries which would substitute for the traditional double deflation method. The new method consists of deflating industries' direct and indirect contributions to final demand deliveries (their value‐added by commodity) by the respective final demand commodity prices. The article shows that the new industry real value‐added measures have better statistical and analytical properties than those obtained by the double deflation method.
No takes yet. Share an insight, caveat, or question.
René Durand (1994) studied this question.
Synapse has enriched 5 related papers. Consider them for comparative context: