IDEAS home Printed from https://ideas.repec.org/a/spr/jecstr/v8y2019i1d10.1186_s40008-019-0133-7.html
   My bibliography  Save this article

Balancing and reconciling large multi-regional input–output databases using parallel optimisation and high-performance computing

Author

Listed:
  • Arne Geschke

    (University of Sydney)

  • Julien Ugon

    (Deakin University)

  • Manfred Lenzen

    (University of Sydney)

  • Keiichiro Kanemoto

    (Research Institute for Humanity and Nature)

  • Daniel Dean Moran

    (Norwegian University of Science and Technology)

Abstract

Over the past decade, large-scale multi-regional input–output (MRIO) tables have advanced the knowledge about pressing global issues. At the same time, the data reconciliation strategies required to construct such MRIOs have vastly increased in complexity: large-scale MRIOs are more detailed and hence require large amounts of different source data which are in return often varying in quality and reliability, overlapping, and, as a result, conflicting. Current MRIO reconciliation approaches—mainly RAS-type algorithms—cannot fully address this complexity adequately, since they are either tailored to handle certain classes of constraints only, or their mathematical foundations are currently unknown. Least-squares-type approaches have been identified to offer a robust mathematical framework, but the added complexity in terms of numerical handling and computing requirements has so far prevented the use of these methods for MRIO reconciliation tasks. We present a new algorithm (ACIM) based on a weighted least-squares approach. ACIM is able to reconcile MRIO databases of equal or greater size than then currently largest global MRIO databases. ACIM can address arbitrary linear constraints and consider lower and upper bounds as well as reliability information for each given data point. ACIM is based on judicious data preprocessing, state-of-the art quadratic optimisation, and high-performance computing in combination with parallel programming. ACIM addresses all shortcomings of RAS-type MRIO reconciliation approaches. ACIM’s was tested on the Eora model, and it was able to demonstrate improved runtimes and source data adherences.

Suggested Citation

  • Arne Geschke & Julien Ugon & Manfred Lenzen & Keiichiro Kanemoto & Daniel Dean Moran, 2019. "Balancing and reconciling large multi-regional input–output databases using parallel optimisation and high-performance computing," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 8(1), pages 1-24, December.
    • Handle: RePEc:spr:jecstr:v:8:y:2019:i:1:d:10.1186_s40008-019-0133-7
    DOI: 10.1186/s40008-019-0133-7
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s40008-019-0133-7
    File Function: Abstract
    Download Restriction: no
    File URL: https://libkey.io/10.1186/s40008-019-0133-7?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Richard Wood & Konstantin Stadler & Tatyana Bulavskaya & Stephan Lutter & Stefan Giljum & Arjan De Koning & Jeroen Kuenen & Helmut Schütz & José Acosta-Fernández & Arkaitz Usubiaga & Moana Simas & Olg, 2014. "Global Sustainability Accounting—Developing EXIOBASE for Multi-Regional Footprint Analysis," Sustainability, MDPI, vol. 7(1), pages 1-26, December.
    2. Konstantin Stadler & Richard Wood & Tatyana Bulavskaya & Carl†Johan Södersten & Moana Simas & Sarah Schmidt & Arkaitz Usubiaga & José Acosta†Fernández & Jeroen Kuenen & Martin Bruckner & Stefan, 2018. "EXIOBASE 3: Developing a Time Series of Detailed Environmentally Extended Multi†Regional Input†Output Tables," Journal of Industrial Ecology, Yale University, vol. 22(3), pages 502-515, June.
    3. Richard Stone & D. G. Champernowne & J. E. Meade, 1942. "The Precision of National Income Estimates," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 9(2), pages 111-125.
    4. Clifford Hildreth, 1957. "A quadratic programming procedure," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 4(1), pages 79-85, March.
    5. Donald Gilchrist & Larry V. ST Louis, 1999. "Completing Input-Output Tables using Partial Information, with an Application to Canadian Data," Economic Systems Research, Taylor & Francis Journals, vol. 11(2), pages 185-194.
    6. Michael Lahr & Louis de Mesnard, 2004. "Biproportional Techniques in Input-Output Analysis: Table Updating and Structural Analysis," Economic Systems Research, Taylor & Francis Journals, vol. 16(2), pages 115-134.
    7. Roberto Mínguez & Jan Oosterhaven & Fernando Escobedo, 2009. "Cell‐Corrected Ras Method (Cras) For Updating Or Regionalizing An Input–Output Matrix," Journal of Regional Science, Wiley Blackwell, vol. 49(2), pages 329-348, May.
    8. Theo Junius & Jan Oosterhaven, 2003. "The Solution of Updating or Regionalizing a Matrix with both Positive and Negative Entries," Economic Systems Research, Taylor & Francis Journals, vol. 15(1), pages 87-96, March.
    9. Patrick Canning & Zhi Wang, 2005. "A Flexible Mathematical Programming Model to Estimate Interregional Input–Output Accounts," Journal of Regional Science, Wiley Blackwell, vol. 45(3), pages 539-563, August.
    10. Arnold Tukker & Erik Dietzenbacher, 2013. "Global Multiregional Input-Output Frameworks: An Introduction And Outlook," Economic Systems Research, Taylor & Francis Journals, vol. 25(1), pages 1-19, March.
    11. R. P. Byron, 1996. "Diagnostic Testing and Sensitivity Analysis in the Construction of Social Accounting Matrices," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 159(1), pages 133-148, January.
    12. Manfred Lenzen & Daniel Moran & Keiichiro Kanemoto & Arne Geschke, 2013. "Building Eora: A Global Multi-Region Input-Output Database At High Country And Sector Resolution," Economic Systems Research, Taylor & Francis Journals, vol. 25(1), pages 20-49, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Umed Temursho & Manuel Alejandro Cardenete & Krzysztof Wojtowicz & Luis Rey & Matthias Weitzel & Toon Vandyck & Bert Saveyn, 2020. "Projecting input-output tables for model baselines," JRC Research Reports JRC120513, Joint Research Centre.
    2. M. Alejandro Cardenete & M. Carmen Delgado & Patricia D. Fuentes & M. Carmen Lima & Alfredo J. Mainar & Jose M. Rueda-Cantuche & Sébastien Mary & Fabien Santini & Sergio Gomez y Paloma, 2015. "Rural-urban social accounting matrixes for modelling the impact of rural development policies in the EU," JRC Research Reports JRC94394, Joint Research Centre.
    3. Szabó, Norbert, 2015. "Methods for regionalizing input-output tables," MPRA Paper 73947, University Library of Munich, Germany.
    4. Eivind Lekve Bjelle & Johannes Többen & Konstantin Stadler & Thomas Kastner & Michaela C. Theurl & Karl-Heinz Erb & Kjartan-Steen Olsen & Kirsten S. Wiebe & Richard Wood, 2020. "Adding country resolution to EXIOBASE: impacts on land use embodied in trade," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-25, December.
    5. Cahen-Fourot, Louison & Campiglio, Emanuele & Godin, Antoine & Kemp-Benedict, Eric & Trsek, Stefan, 2021. "Capital stranding cascades: The impact of decarbonisation on productive asset utilisation," Energy Economics, Elsevier, vol. 103(C).
    6. Richard Wood & Konstantin Stadler & Tatyana Bulavskaya & Stephan Lutter & Stefan Giljum & Arjan De Koning & Jeroen Kuenen & Helmut Schütz & José Acosta-Fernández & Arkaitz Usubiaga & Moana Simas & Olg, 2014. "Global Sustainability Accounting—Developing EXIOBASE for Multi-Regional Footprint Analysis," Sustainability, MDPI, vol. 7(1), pages 1-26, December.
    7. Maxime Agez & Guillaume Majeau‐Bettez & Manuele Margni & Anders H. Strømman & Réjean Samson, 2020. "Lifting the veil on the correction of double counting incidents in hybrid life cycle assessment," Journal of Industrial Ecology, Yale University, vol. 24(3), pages 517-533, June.
    8. Edgar Towa & Vanessa Zeller & Stefano Merciai & Jannick Schmidt & Wouter M. J. Achten, 2022. "Toward the development of subnational hybrid input–output tables in a multiregional framework," Journal of Industrial Ecology, Yale University, vol. 26(1), pages 88-106, February.
    9. Onat, Nuri Cihat & Kucukvar, Murat, 2020. "Carbon footprint of construction industry: A global review and supply chain analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 124(C).
    10. Chen, B. & Yang, Q. & Zhou, Sili & Li, J.S. & Chen, G.Q., 2017. "Urban economy's carbon flow through external trade: Spatial-temporal evolution for Macao," Energy Policy, Elsevier, vol. 110(C), pages 69-78.
    11. Jakub Boratyński, 2016. "A Bayesian Approach to Matrix Balancing: Transformation of Industry-Level Data under NACE Revision," Central European Journal of Economic Modelling and Econometrics, Central European Journal of Economic Modelling and Econometrics, vol. 8(4), pages 219-239, December.
    12. Kan, Siyi & Chen, Bin & Meng, Jing & Chen, Guoqian, 2020. "An extended overview of natural gas use embodied in world economy and supply chains: Policy implications from a time series analysis," Energy Policy, Elsevier, vol. 137(C).
    13. Fabio Monsalve & Mateo Ortiz & María-Ángeles Cadarso & Enrique Gilles & Jorge Zafrilla & Luis-Antonio López, 2020. "Nesting a city input–output table in a multiregional framework: a case example with the city of Bogota," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-24, December.
    14. Juan Manuel Valderas‐Jaramillo & José Manuel Rueda‐Cantuche, 2021. "The multidimensional nD‐GRAS method: Applications for the projection of multiregional input–output frameworks and valuation matrices," Papers in Regional Science, Wiley Blackwell, vol. 100(6), pages 1599-1624, December.
    15. Bruckner, Martin & Fischer, Günther & Tramberend, Sylvia & Giljum, Stefan, 2015. "Measuring telecouplings in the global land system: A review and comparative evaluation of land footprint accounting methods," Ecological Economics, Elsevier, vol. 114(C), pages 11-21.
    16. Simon Schulte & Arthur Jakobs & Stefan Pauliuk, 2021. "Relaxing the import proportionality assumption in multi-regional input–output modelling," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 10(1), pages 1-21, December.
    17. Daniel Moran & Richard Wood, 2014. "Convergence Between The Eora, Wiod, Exiobase, And Openeu'S Consumption-Based Carbon Accounts," Economic Systems Research, Taylor & Francis Journals, vol. 26(3), pages 245-261, September.
    18. Kucukvar, Murat & Haider, Muhammad Ali & Onat, Nuri Cihat, 2017. "Exploring the material footprints of national electricity production scenarios until 2050: The case for Turkey and UK," Resources, Conservation & Recycling, Elsevier, vol. 125(C), pages 251-263.
    19. He, Peijun & Ng, Tsan Sheng & Su, Bin, 2019. "Energy-economic resilience with multi-region input–output linear programming models," Energy Economics, Elsevier, vol. 84(C).
    20. Wang, Zhi & Gehlhar, Mark & Yao, Shunli, 2010. "A globally consistent framework for reliability-based trade statistics reconciliation in the presence of an entrepôt," China Economic Review, Elsevier, vol. 21(1), pages 161-189, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jecstr:v:8:y:2019:i:1:d:10.1186_s40008-019-0133-7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.