Value Added
From Open Risk Manual
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
