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Make and Use Approaches to Regional and Interregional Accounts and Models

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  • Bjarne Madsen
  • Chris Jensen-Butler
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    Abstract

    Institutional, or sector-by-sector input-output tables have traditionally been used in regional and interregional modelling. This paper examines the origins of this tradition and argues instead, both theoretically and empirically, for the integration of make and use submodels within models of production, demand and interregional trade, outlining the manner in which they can be integrated. Further, it is argued that structural rather than reduced-form models represent a sounder theoretical base. Finally, a Danish interregional model (LINE) based on a social accounting matrix framework that employs these principles is presented. The paper also deals with the issue of data construction at the regional and interregional levels, based on the make and use approach. It is argued that when data are constructed at a low level of sectoral and spatial aggregation under accounting consistency constraints, data quality and validity are high.

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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Economic Systems Research.

    Volume (Year): 11 (1999)
    Issue (Month): 3 ()
    Pages: 277-300

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    Handle: RePEc:taf:ecsysr:v:11:y:1999:i:3:p:277-300

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    Related research

    Keywords: Make and use; interregional trade; commodity balance; regional accounts;

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    Cited by:
    1. Manfred Lenzen & Roberto Schaeffer, 2004. "Environmental and Social Accounting for Brazil," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 27(2), pages 201-226, February.
    2. Yoshifumi Ishikawa & Toshihiko Miyagi, 2004. "The Construction of a 47-Region Inter-regional Input-Output Table, and Inter-regional Interdependence Analysis at Prefecture Level in Japan," ERSA conference papers ersa04p432, European Regional Science Association.
    3. Ana Sargento & Pedro Nogueira Ramos & Geoffrey Hewings, 2011. "Input-Output Modelling Based on Total-Use Rectangular Tables: Is This a Better Way?," Notas Económicas, Faculdade de Economia, Universidade de Coimbra, issue 34, pages 08-34, December.
    4. Madsen, Bjarne & Jensen-Butler, Chris, 2004. "Theoretical and operational issues in sub-regional economic modelling, illustrated through the development and application of the LINE model," Economic Modelling, Elsevier, vol. 21(3), pages 471-508, May.
    5. Gulay Gunlu k-Senesen & Umit Senesen, 2001. "Reconsidering Import Dependency in Turkey: The Breakdown of Sectoral Demands with Respect to Suppliers," Economic Systems Research, Taylor & Francis Journals, vol. 13(4), pages 417-428.

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