Description

As from issue number 50, the Series of Economic Studies of the Central Bank of Chile will be called Studies in Economic Statistics.

Current efforts to measure Trade in Value Added (TiVA) using Input-Output Tables (IOT) have come across challenges regarding the homogenous production functions assumptions embedded in them. This work proposes a method to account for the heterogeneity within industries for the Chilean economy, providing technical coefficients related to market orientation, firm’s size and ownership. This method is capable of overcoming the aggregate nature of the IOT, and reports a more detailed characterization of firms addressing the three dimensions aforementioned. By doing this, the proposal is capable of showing the heterogeneity in production functions within industries.