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Testing Assumptions Made In The Construction Of Input--Output Tables

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  • Jos� M. Rueda-Cantuche
  • Thijs Ten Raa

Abstract

Product input--output (IO) tables are mainly constructed on the basis of product and/or industry technology assumptions. The choice is not trivial and deserves empirical analysis using input and output data at the level of establishments. This paper offers input--output compilers econometric tests to facilitate the construction of tailored hybrid technology-based product IO tables. We provide weighted likelihood ratios of the product and industry technology assumptions. Although the proposed econometric tests are aimed to be used ex ante , we construct four variants of hybrid technology-based product IO tables using establishment data from Andalusia (Spain) and contrast them to the official product IO table and the pure product and industry technology-based tables. Our econometric tests are not valid for industry IO tables.

Suggested Citation

  • Jos� M. Rueda-Cantuche & Thijs Ten Raa, 2013. "Testing Assumptions Made In The Construction Of Input--Output Tables," Economic Systems Research, Taylor & Francis Journals, vol. 25(2), pages 170-189, March.
    • Handle: RePEc:taf:ecsysr:v:25:y:2013:i:2:p:170-189
    DOI: 10.1080/09535314.2013.774265
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    Cited by:

    1. Umed Temurshoev, 2015. "Uncertainty treatment in input-output analysis," Working Papers 2015-004, Universidad Loyola Andalucía, Department of Economics.
    2. Van Tongeren, J.W. & Magnus, J.R., 2011. "Bayesian Integration of Large Scale SNA Data Frameworks with an Application to Guatemala," Discussion Paper 2011-022, Tilburg University, Center for Economic Research.
    3. Van Tongeren, J.W., 2011. "From national accounting to the design, compilation, and use of bayesian policy and analysis frameworks," Other publications TiSEM e2d6399b-fdf5-4147-b414-3, Tilburg University, School of Economics and Management.
    4. Reinout Heijungs & Arjan Koning, 2019. "Analyzing the effects of the choice of model in the context of marginal changes in final demand," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 8(1), pages 1-22, December.

    More about this item

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • D - Microeconomics

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