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Input-Output Modelling Based on Total-Use Rectangular Tables: Is This a Better Way?

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  • Ana Sargento

    (Polytechnic Institute of Leiria, School of Technology and Management)

  • Pedro Nogueira Ramos

    ()
    (Faculty of Economics/GEMF, University of Coimbra)

  • Geoffrey Hewings

    (Regional Economics Applications Laboratory, University of Illinois at Urbana-Champaign (USA))

Abstract

Input-output tables can be presented in different formats, according to three main criteria: 1) symmetric or rectangular format; 2) total or domestic-use flows and 3) valuation prices (basic prices – bp or purchasers’ prices – pp). Official National Accounts (at least in EU) produce in a regular base a total use rectangular table at pp – also known as the Make and Use (M&U) format – that is different from the lay-out upon which traditional input-output models were developed (domestic use, symmetric, bp). The problem with this latter one is of course that it is only available at times in many countries. The objective of this paper is to prove (under common hypotheses) the equivalence between two alternative procedures, from the point of view of the results of an input-output model: 1) to convert the M&U input-output table into the traditional format – a domestic-use symmetric table at bp – and then implement the model; 2) to perform the direct modelling of the original table (the total-use rectangular table at pp). That equivalence is illustrated with Portuguese data for the year 2002.

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Bibliographic Info

Article provided by Faculdade de Economia, Universidade de Coimbra in its journal Notas Económicas.

Volume (Year): (2011)
Issue (Month): 34 (December)
Pages: 08-34

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Handle: RePEc:gmf:journl:y:2011:i:34:p:08-34

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  1. Norihiko Yamano & Nadim Ahmad, 2006. "The OECD Input-Output Database: 2006 Edition," OECD Science, Technology and Industry Working Papers 2006/8, OECD Publishing.
  2. Bjarne Madsen & Chris Jensen-Butler, 1999. "Make and Use Approaches to Regional and Interregional Accounts and Models," Economic Systems Research, Taylor & Francis Journals, vol. 11(3), pages 277-300.
  3. Thijs Ten Raa & Jose Manuel Rueda-Cantuche, 2007. "A Generalized Expression for the Commodity and the Industry Technology Models in Input-Output Analysis," Economic Systems Research, Taylor & Francis Journals, vol. 19(1), pages 99-104.
  4. Randall Jackson, 1998. "Regionalizing National Commodity-by-Industry Accounts," Economic Systems Research, Taylor & Francis Journals, vol. 10(3), pages 223-238.
  5. Michael Lahr, 2001. "Reconciling Domestication Techniques, the Notion of Re-exports and Some Comments on Regional Accounting," Economic Systems Research, Taylor & Francis Journals, vol. 13(2), pages 165-179.
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