Examining repercussions of consumptions and inputs placed on the construction sector by use of I-O tables and DEA

Abstract

This paper aims at introducing the data envelopment analysis (DEA) method to input-output (I-O) analyses. I-O tables have been developed for many decades and have been used extensively to describe and explain economic, social, and environmental issues. One of its major benefits is the derivation of intermediate inputs and demands, which offers more information for data analysis. On the other hand, DEA is argued to be an objective method addressing decision problems. In this paper, it helps to calculate the relative efficiency for each industrial sector based on inputs and outputs of an I-O table. This has extended the static I-O tables to dynamic applications. In order to demonstrate this, five objectives are created to examine repercussions of consumptions and inputs placed on the construction sector in terms of the relative degree of reliance. A numerical example based on the Japanese case is discussed. Based upon the results, strategies and policies can be formulated to overcome difficulties and problems faced by the construction related companies, the construction sector as a whole, and the government as well. © 2005 Elsevier Ltd. All rights reserved.