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Deflation of Input-Output Tables from the User's Point of View: A Heuristic Approach

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  • Dietzenbacher, Erik
  • Hoen, Alex R

Abstract

This paper considers the problem of deflating an input-output table from the viewpoint of the user. In many practical cases, certain margins of this table are readily available in constant prices, whereas the entire table is not. This reduces the problem to estimating the matrix of sectoral intermediate deliveries in constant prices. The traditional approach for this purpose is based on the double deflation method. Since double deflation is sensitive to aggregation, however, it typically does not provide correct answers. Therefore, a heuristic approach is proposed as an alternative. It is based on the biproportional projection method. An empirical evaluation indicates that the heuristic approach clearly performs better. Copyright 1998 by The International Association for Research in Income and Wealth.

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Bibliographic Info

Article provided by International Association for Research in Income and Wealth in its journal Review of Income & Wealth.

Volume (Year): 44 (1998)
Issue (Month): 1 (March)
Pages: 111-22

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Handle: RePEc:bla:revinw:v:44:y:1998:i:1:p:111-22

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Cited by:
  1. Jordi Roca Jusmet & Monica Serrano Gutierrez, 2006. "Income Growth and Atmospheric Pollution in Spain: An Input-Output Approach," Working Papers in Economics 164, Universitat de Barcelona. Espai de Recerca en Economia.
  2. Meng, Bo & Chao, Qu, 2007. "Application of the Input-Output Decomposition Technique to China's Regional Economies," IDE Discussion Papers 102, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  3. Yang, Ling & Lahr, Michael/L, 2008. "Interregiona;Decomposition of labor productivity differences in China, 1987-1997," MPRA Paper 8313, University Library of Munich, Germany.
  4. Shigemi Kagawa & Hajime Inamura, 2004. "A Spatial Structural Decomposition Analysis of Chinese and Japanese Energy Demand: 1985-1990," Economic Systems Research, Taylor & Francis Journals, vol. 16(3), pages 279-299.
  5. Yang, Ling & Lahr, Michael L., 2010. "Sources of Chinese labor productivity growth: A structural decomposition analysis, 1987-2005," China Economic Review, Elsevier, vol. 21(4), pages 557-570, December.
  6. Erik Dietzenbacher & Bart Los, 2000. "Structural Decomposition Analyses with Dependent Determinants," Economic Systems Research, Taylor & Francis Journals, vol. 12(4), pages 497-514.
  7. Mikuláš Luptáèik & Bernhard Mahlberg, 2013. "Eco-Efficiency and Eco-Productivity change over time in a multisectoral economic system," Department of Economic Policy Working Paper Series 004, Department of Economic Policy, Faculty of National Economy, University of Economics in Bratislava.
  8. Mahlberg, Bernhard & Luptacik, Mikulas, 2014. "Eco-efficiency and eco-productivity change over time in a multisectoral economic system," European Journal of Operational Research, Elsevier, vol. 234(3), pages 885-897.

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