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Accounting foundations for interregional commodity-by-industry input-output models

Author

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  • Randall Jackson
  • Walter Schwarm

Abstract

Several procedures for generating interregional commodity flow matrices have been developed in the U.S. in recent years (see, e.g., Canning and Wang in J. Reg. Sci. 45, 539–563, 2005, Jackson et al. in Ann. Reg. Sci. 40, 909–920, 2006, Lindall et al. in J. Reg. Anal. Policy 36, 76–83, 2006). Despite the fact that these methods derive from the commodity-by-industry framework, very little attention has been given recently to the fundamental conceptual issues that must be confronted to generate a consistently defined interregional model or to conduct an interregional impacts assessment using an appropriate interregional framework. This paper revives the focus on interregional modeling issues initiated by Oosterhaven in Reg. Sci. Urban Econ. 14, 562–582 (1984), identifies and elaborates on these and additional issues, and traces the development of the accounting foundations from single-region inter-industry through interregional commodity-by-industry accounts. Its contribution lies in the provision of a high-level perspective on these frameworks that in the process both clarifies and simplifies key conceptual issues and operational decisions.
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Suggested Citation

  • Randall Jackson & Walter Schwarm, 2011. "Accounting foundations for interregional commodity-by-industry input-output models," Letters in Spatial and Resource Sciences, Springer, vol. 4(3), pages 187-196, October.
    • Handle: RePEc:spr:lsprsc:v:4:y:2011:i:3:p:187-196
    DOI: 10.1007/s12076-011-0066-8
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    1. John A. Kuehn & Michael H. Procter & Curtis H. Braschler, 1985. "Comparisons of Multipliers from Input-Output and Economic Base Models," Land Economics, University of Wisconsin Press, vol. 62(2), pages 129-135.
    2. Louis De Mesnard, 2004. "Understanding the Shortcomings of Commodity‐based Technology in Input–Output Models: an Economic‐Circuit Approach," Journal of Regional Science, Wiley Blackwell, vol. 44(1), pages 125-141, February.
    3. Oosterhaven, Jan, 1984. "A family of square and rectangular interregional input-output tables and models," Regional Science and Urban Economics, Elsevier, vol. 14(4), pages 565-582, November.
    4. Lindall, Scott A. & Olson, Douglas C. & Alward, Gregory S., 2006. "Deriving Multi-Regional Models Using the IMPLAN National Trade Flows Model," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 36(1), pages 1-8.
    5. Robinson, Dennis P. & Liu, Zuoming, 2006. "The Effects of Interregional Trade Flow Estimating Procedures on Multiregional Social Accounting Matrix Multipliers," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 36(1), pages 1-21.
    6. 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.
    7. Randall Jackson, 1998. "Regionalizing National Commodity-by-Industry Accounts," Economic Systems Research, Taylor & Francis Journals, vol. 10(3), pages 223-238.
    8. Randall Jackson & Walter Schwarm & Yasuhide Okuyama & Samia Islam, 2006. "A method for constructing commodity by industry flow matrices," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 40(4), pages 909-920, December.
    9. Schwarm, Walter R. & Jackson, Randall W. & Okuyama, Yasuhide, 2006. "An Evaluation of Method for Constructing Commodity by Industry Flow Matrices," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 36(1), pages 1-10.
    10. 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.
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    Cited by:

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    2. Court, Christa D., 2012. "Enhancing U.S. hazardous waste accounting through economic modeling," Ecological Economics, Elsevier, vol. 83(C), pages 79-89.
    3. Többen, Johannes, 2017. "Regional Net Impacts and Social Distribution Effects of Promoting Renewable Energies in Germany," Ecological Economics, Elsevier, vol. 135(C), pages 195-208.
    4. Rocco, Matteo V. & Guevara, Zeus & Heun, Matthew Kuperus, 2020. "Assessing energy and economic impacts of large-scale policy shocks based on Input-Output analysis: Application to Brexit," Applied Energy, Elsevier, vol. 274(C).
    5. Juan Tomas Sayago-Gomez, 2014. "Matlab Code for Structural Decomposition Analysis," Working Papers Technical Document 2014-0, Regional Research Institute, West Virginia University, revised 05 May 2014.

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    More about this item

    Keywords

    Interregional; Input-output; Commodity-by-industry; C67; D57; R15;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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