A New Input-Output Table Built from Neoclassical Analysis that Considers Economic Rent

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This paper introduces a novel input-output table derived from neoclassical profit maximization that explicitly accounts for economic rent, offering theoretical improvements and new economic insights.

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Abstract

Despite the extended use of the input-output framework, its acceptance among economists is limited due to lack of microfoundations and imposed omission of economic rent. A new input-output table is built from basic neoclassical profit maximization, which explicitly considers economic rent. The new table holds eight differences with conventional open input-output tables which enhances the framework’s theoretical basis, allows for economic rent, and yields new insights into economic structures.JEL Codes: C67, D57
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A New Input-Output Table Built from Neoclassical Analysis that Considers Economic Rent | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research A New Input-Output Table Built from Neoclassical Analysis that Considers Economic Rent Benjamin Leiva This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-948361/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract Despite the extended use of the input-output framework, its acceptance among economists is limited due to lack of microfoundations and imposed omission of economic rent. A new input-output table is built from basic neoclassical profit maximization, which explicitly considers economic rent. The new table holds eight differences with conventional open input-output tables which enhances the framework’s theoretical basis, allows for economic rent, and yields new insights into economic structures. JEL Codes: C67, D57 Econometrics Other Economics Input-output framework neoclassical theory economic rent economic structure Full Text Supplementary Files Numericalillustrations.xlsx Numerical Illustration SI.pdf Supporting Information Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. Our growing team is made up of researchers and industry professionals working together to solve the most critical problems facing scientific publishing. Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-948361","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Research","associatedPublications":[],"authors":[{"id":55866275,"identity":"aa4c9cfa-fe24-49bd-8e7a-519244d045b4","order_by":0,"name":"Benjamin Leiva","email":"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAZAAAAAyAQMAAABI0h/eAAAABlBMVEX///8AAABVwtN+AAAACXBIWXMAAA7EAAAOxAGVKw4bAAAA2klEQVRIiWNgGAWjYBACAwbmBoYEBgY5CJeNKC2MYC3GCC2EtIG1AEFiA9FazKUbGx88bLNL33Aj/QLDh7LDDPLxDfi1WM452GyQ2Jacu+FGTgHjjHOHGQyPEXLYjcQ2iYQzzLkbzpxJYOZtA2ppI6yl/UfCmfp0A5CWv0RqaWNIqDicYHC8/QAzI1CLPCHvW85IbJZIqDhuOPN4D8PBnnPpPAZsCfi1mEskH/z4w6Banu8w+8MHP8qs5eSbDxCwBgF4DA7ASSIB+wMwJd9AvJZRMApGwSgYGQAACxpH+2RbjIAAAAAASUVORK5CYII=","orcid":"","institution":"Universi-dad del Valle de Guatemala","correspondingAuthor":true,"submittingAuthor":false,"prefix":"","firstName":"Benjamin","middleName":"","lastName":"Leiva","suffix":""}],"badges":[],"createdAt":"2021-09-29 10:21:44","currentVersionCode":1,"declarations":"","doi":"10.21203/rs.3.rs-948361/v1","doiUrl":"https://doi.org/10.21203/rs.3.rs-948361/v1","draftVersion":[],"editorialEvents":[],"editorialNote":"","failedWorkflow":false,"files":[{"id":29418235,"identity":"efd6585e-aa4d-4bbd-9254-ef1f46cb0c0a","added_by":"auto","created_at":"2022-11-23 02:31:03","extension":"pdf","order_by":1,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":422767,"visible":true,"origin":"","legend":"","description":"","filename":"Paper4.pdf","url":"https://assets-eu.researchsquare.com/files/rs-948361/v1_covered.pdf"},{"id":14410034,"identity":"4ffa9a62-3f04-41d1-86f0-df604a842a62","added_by":"auto","created_at":"2021-10-11 14:40:01","extension":"pdf","order_by":1,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":422988,"visible":true,"origin":"","legend":"","description":"","filename":"Paper4.pdf","url":"https://assets-eu.researchsquare.com/files/rs-948361/v1_covered.pdf"},{"id":14410033,"identity":"0218692b-5c5d-470c-b0e8-69a6d17d2a52","added_by":"auto","created_at":"2021-10-11 14:39:56","extension":"xlsx","order_by":1,"title":"","display":"","copyAsset":false,"role":"supplement","size":90687,"visible":true,"origin":"","legend":"Numerical Illustration","description":"","filename":"Numericalillustrations.xlsx","url":"https://assets-eu.researchsquare.com/files/rs-948361/v1/79b41c462675a673ce2a1817.xlsx"},{"id":14410032,"identity":"04703c60-27b9-480d-9c77-36daff860090","added_by":"auto","created_at":"2021-10-11 14:39:56","extension":"pdf","order_by":2,"title":"","display":"","copyAsset":false,"role":"supplement","size":126744,"visible":true,"origin":"","legend":"Supporting Information","description":"","filename":"SI.pdf","url":"https://assets-eu.researchsquare.com/files/rs-948361/v1/992a920c18c40225c4a6db99.pdf"}],"financialInterests":"","formattedTitle":"\u003cp\u003eA New Input-Output Table Built from Neoclassical Analysis that Considers Economic Rent\u003c/p\u003e","fulltext":[{"header":"Full Text","content":"This preprint is available for \u003ca href='/article/rs-948361/latest.pdf' target='_blank'\u003edownload as a PDF\u003c/a\u003e."}],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":false,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":false,"hideJournal":true,"highlight":"","institution":"","isAcceptedByJournal":false,"isAuthorSuppliedPdf":true,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":true,"isPdf":false,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true},"keywords":"Input-output framework, neoclassical theory, economic rent, economic structure","lastPublishedDoi":"10.21203/rs.3.rs-948361/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-948361/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eDespite the extended use of the input-output framework, its acceptance among economists is limited due to lack of microfoundations and imposed omission of economic rent. 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