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Commodity Balance and Interregional Trade: Make and Use Approaches to Interregional Modelling

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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. The paper examines the origins of this tradition and argues instead both theoretically and empirically for the integration of Make and Use sub models in interregional models involving interregional trade, outlining the manned in which these can be integrated. Further, it is argued that structural form rather than reduced form models represent a sounder theoretical base. Finally, a Danish interregional model, LINE, based upon a SAM framework, employing these principles, is outlined and questions of data validity in this type of model are discussed.

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    Bibliographic Info

    Paper provided by Centre for Research into Industry, Enterprise, Finance and the Firm in its series CRIEFF Discussion Papers with number 9804.

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    Date of creation: Oct 1998
    Date of revision:
    Handle: RePEc:san:crieff:9804

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    Postal: School of Economics and Finance, University of St. Andrews, Fife KY16 9AL
    Phone: 01334 462420
    Fax: 01334 462438
    Web page: http://crieff.wordpress.com/
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    Related research

    Keywords: Interregional modelling; Input-output; Make and Use; Social Accounting;

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    Cited by:
    1. Piispala, Juha, 1999. "Constructing Regional Supply and Use Tables in Finland," ERSA conference papers ersa99pa130, European Regional Science Association.
    2. Louis Mesnard, 2011. "Negatives in symmetric input–output tables: the impossible quest for the Holy Grail," The Annals of Regional Science, Springer, vol. 46(2), pages 427-454, April.

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