, Volume 136, Issue 2, pp 355-371

Tests for factor homogeneity and industry classification

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As we saw at the outset, the issue of whether statistical classifications of industries map on to groups of activities that can be aggregated together in an economically meaningful way is an important one. It is especially important in the context of IIT analysis, not only for its implications for measuring IIT but also from the standpoint of assessing its adjustment implications.