PRIMARY VERSUS SECONDARY PRODUCTION TECHNIQUES IN US MANUFACTURING

In this paper we analyze the determinants of material inputs into indi vidual production activities as a function of their outputs. We use ob servations on a large cross-section of U.S. manufacturing plants from the Census of Manufactures, including those that make goods primary to other industries, to study differences in production techniques. We f ind that in most cases material requirements do not depend on whether goods are made as primary products or as secondary products. We thus e lucidate support for the commodity technology model as a useful workin g hypothesis.