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Construction Of Multi-Regional Input--Output Tables Using The Charm Method

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  • Johannes Többen
  • Tobias Heinrich Kronenberg

Abstract

Subnational multi-regional input--output tables (IOT) are important tools for studying interregional socio-economic and/or environmental interrelations that help to address a wide range of current societal, ecological and economic challenges. However, the lack of subnational input--output data is a major obstacle which leads to a wide use of non-survey methods. Like other non-survey methods, the cross-hauling adjusted regionalization method (CHARM) was originally developed for the construction of single-regional IOT. In this paper, we extend CHARM to the case of bi- and multi-regional IOT. We find that the original CHARM formula has two limitations that are also of great importance for the single-regional case: First, cross-hauling in interregional trade is implicitly set to zero and, second, accounting balances may be violated owing to structural differences between the regional and national economies. We present a modified formula addressing these issues and examine its performance in terms of a case study.

Suggested Citation

  • Johannes Többen & Tobias Heinrich Kronenberg, 2015. "Construction Of Multi-Regional Input--Output Tables Using The Charm Method," Economic Systems Research, Taylor & Francis Journals, vol. 27(4), pages 487-507, December.
    • Handle: RePEc:taf:ecsysr:v:27:y:2015:i:4:p:487-507
    DOI: 10.1080/09535314.2015.1091765
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    2. Többen, Johannes & Schröder, Thomas, 2018. "A maximum entropy approach to the estimation of spatially and sectorally disaggregated electricity load curves," Applied Energy, Elsevier, vol. 225(C), pages 797-813.
    3. Ana Maria Montoya Gómez & Marie-Theres von Schickfus & Markus Zimmer, 2020. "Economic Effects of Regional Energy System Transformations: An Application to the Bavarian Oberland Region," CESifo Working Paper Series 8253, CESifo.
    4. Cristian Mardones & Darling Silva, 2023. "Evaluation of Non-survey Methods for the Construction of Regional Input–Output Matrices When There is Partial Historical Information," Computational Economics, Springer;Society for Computational Economics, vol. 61(3), pages 1173-1205, March.
    5. Ageliki Anagnostou & Pawel Gajewski, 2021. "Multi-Regional Input–Output Tables for Macroeconomic Simulations in Poland’s Regions," Economies, MDPI, vol. 9(4), pages 1-19, October.
    6. Marek Radvanský & Ivan Lichner, 2021. "An alternative approach to the construction of multi-regional input–output tables of the Czech Republic: application of the CHARM method," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 48(4), pages 1083-1111, November.
    7. Schwärzler, Marion Cornelia & Kronenberg, Tobias, 2017. "Methodology of the Multiregional Health Account for Germany - An Iterative Algorithm-Based Multiregionalization Approach of Supply and Use Tables with Emphasis on Health," MPRA Paper 80712, University Library of Munich, Germany.
    8. Schwärzler, Marion Cornelia & Kronenberg, Tobias, 2016. "Methodology of the National Health Account for Germany - Database, compilation and results," MPRA Paper 73561, University Library of Munich, Germany.
    9. Fischer, W. & Hake, J.-Fr. & Kuckshinrichs, W. & Schröder, T. & Venghaus, S., 2016. "German energy policy and the way to sustainability: Five controversial issues in the debate on the “Energiewende”," Energy, Elsevier, vol. 115(P3), pages 1580-1591.
    10. Stöver, Britta, 2018. "The local impact and multiplier effect of universities in Lower Saxony on the labour market," Hannover Economic Papers (HEP) dp-646, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.

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