Value Added
From Open Risk Manual
Revision as of 15:47, 28 February 2022 by Wiki admin (talk | contribs)
Definition
The gross Value added at basic price is defined as the difference between output at basic prices and intermediate consumption at purchaser’s prices. In the context of Input-Output Analysis, Value Added is an additional row added to the Use Table or the Industry Transaction Matrix account for the other (non-industrial) inputs to production, such as labor, depreciation of capital, indirect business taxes, and imports.
Formula
∗ VA1 + VA2 = GDP (=sum of factor incomes)
- w value added vector
