Examining and Evaluating Aggregation Scale Effects on Interregional Commodity by Industry Trade Flow Estimates
AbstractThis study tests the implementation of interindustry transaction flows in a national system of economic regions derived from an interregional accounting framework and initial information on interregional shipments. The interregional flows connecting states are estimated using a method based on the Commodity Flow Survey data published by the Bureau of Transportation Statistics, which adjusts the estimated interregional SAM to insure the integrity of intraregional and system-wide, national accounts. The resulting US interregional framework describes flows within and among the 51 regions We examine results of a series of trials testing the validity of the resulting interregional trade-flow data versus other data sources and estimates such as Liu and Vilain (2004). The overall difference in estimation accuracy arising from differences in the base aggregation level is a quantity that has attracted little prior attention. To address this issue this paper, in addition to estimating and comparing trade flows using aggregated sectors, also estimates the flows using the 509 disaggregated IMPLAN sectors applies aggregation only in the final comparison steps. This allows us to comment on the additional role sectoral aggregation scale may play in the relative accuracy of trade flow estimation results.
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Bibliographic InfoPaper provided by Regional Research Institute, West Virginia University in its series Working Papers with number 200604.
Length: 20 pages
Date of creation: 2006
Date of revision:
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More information through EDIRC
aggregation scale effects; commodity by industry; trade flow; regional development;
Find related papers by JEL classification:
- C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
- O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
- P25 - Economic Systems - - Socialist Systems and Transition Economies - - - Urban, Rural, and Regional Economics
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- Round, Jeffrey I, 1985. "Decomposing Multipliers for Economic Systems Involving Regional and World Trade," Economic Journal, Royal Economic Society, vol. 95(378), pages 383-99, June.
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