Measuring the economic impact of metrological frauds in trade metrology using an Input-Output Model

BA Rodrigues Filho, RF Gonçalves - … for a Sustainable World: IFIP WG 5.7 …, 2016 - Springer
Advances in Production Management Systems. Initiatives for a Sustainable World …, 2016Springer
The present study aims to evaluate the economic distortion in trade metrology due to
metrological frauds in measuring instruments used in the commerce and industry. The
economic distortion represents the economic losses due to measurement deviations in
trade. An Input-Output Model approach is carried out in order to determine the economic
distortion whenever an output in a process represents the input to another one and it
considers the aggregation of values of products traded in the economy. A case test is also …
Abstract
The present study aims to evaluate the economic distortion in trade metrology due to metrological frauds in measuring instruments used in the commerce and industry. The economic distortion represents the economic losses due to measurement deviations in trade. An Input-Output Model approach is carried out in order to determine the economic distortion whenever an output in a process represents the input to another one and it considers the aggregation of values of products traded in the economy. A case test is also conducted using empirical data of measurement errors and metrological frauds in the fuel sector in Brazil in order to determine their economic impact. The results show that the impact of metrological frauds increase the distortion uncertainty from US$ 54,910,307.13 to US$ 303,734,309.35 toward consumers’ losses creating a great asymmetry in the market.
Springer
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