Redefinition

From Open Risk Manual

Definition

Redefinition. Redefinitions, one of the three methods for handling secondary products, are made as part of the preparation of the supplementary I-O make and use tables.

Redefinitions are made when an industry’s production of a secondary product has very different inputs (“recipe”) than those for the production of its primary product. In such a case, the secondary product (output and inputs) is moved (“redefined”) from the industry in which the output occurs to the industry in which the product is primary.

For example, the output and associated inputs for restaurants located in hotels are moved from the hotels and lodging places industry to the eating and drinking places industry.

Redefinitions do not affect the definition of the commodity or the measurement of commodity output, which consists of all of the output of that commodity wherever it’s produced. However, redefinitions do affect industry output.[1]

References

  1. Concepts and Methods of the US Input-Output Accounts. K.J.Horowitz, M.A.Planting, 2009