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Deflation of Input-Output Tables from the User's Point of View: A Heuristic Approach

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  • Dietzenbacher, Erik
  • Hoen, Alex R

Abstract

This paper considers the problem of deflating an input-output table from the viewpoint of the user. In many practical cases, certain margins of this table are readily available in constant prices, whereas the entire table is not. This reduces the problem to estimating the matrix of sectoral intermediate deliveries in constant prices. The traditional approach for this purpose is based on the double deflation method. Since double deflation is sensitive to aggregation, however, it typically does not provide correct answers. Therefore, a heuristic approach is proposed as an alternative. It is based on the biproportional projection method. An empirical evaluation indicates that the heuristic approach clearly performs better. Copyright 1998 by The International Association for Research in Income and Wealth.

Suggested Citation

  • Dietzenbacher, Erik & Hoen, Alex R, 1998. "Deflation of Input-Output Tables from the User's Point of View: A Heuristic Approach," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 44(1), pages 111-122, March.
  • Handle: RePEc:bla:revinw:v:44:y:1998:i:1:p:111-22
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    Cited by:

    1. Erik Dietzenbacher & Bart Los, 2000. "Structural Decomposition Analyses with Dependent Determinants," Economic Systems Research, Taylor & Francis Journals, vol. 12(4), pages 497-514.
    2. Yang, Ling & Lahr, Michael L., 2008. "Labor Productivity Differences in China 1987-1997: An Interregional Decomposition Analysis," The Review of Regional Studies, Southern Regional Science Association, vol. 38(3), pages 319-341.
    3. Debaere, Peter & Kurzendoerfer, Amanda, 2015. "Decomposing U.S. Water Use Since 1950. Is the U.S. Experience Replicable?," CEPR Discussion Papers 10573, C.E.P.R. Discussion Papers.
    4. Arne J. Nagengast & Robert Stehrer, 2016. "The Great Collapse in Value Added Trade," Review of International Economics, Wiley Blackwell, vol. 24(2), pages 392-421, May.
    5. Juan Tomas Sayago-Gomez, 2014. "Matlab Code for Structural Decomposition Analysis," Working Papers Technical Document 2014-0, Regional Research Institute, West Virginia University.
    6. Yang, Ling & Lahr, Michael L., 2010. "Sources of Chinese labor productivity growth: A structural decomposition analysis, 1987-2005," China Economic Review, Elsevier, vol. 21(4), pages 557-570, December.
    7. Croner, Daniel & Koller, Wolfgang & Mahlberg, Bernhard, 2018. "Economic drivers of greenhouse gas-emissions in small open economies: A hierarchical structural decomposition analysis," MPRA Paper 85755, University Library of Munich, Germany.
    8. Yang, Ling & Lahr, Michael/L, 2008. "Interregiona;Decomposition of labor productivity differences in China, 1987-1997," MPRA Paper 8313, University Library of Munich, Germany.
    9. Ana-Isabel Guerra & Ferran Sancho, 2013. "A Linear Price Model With Extractions," EcoMod2013 5113, EcoMod.
    10. Mahlberg, Bernhard & Luptacik, Mikulas, 2014. "Eco-efficiency and eco-productivity change over time in a multisectoral economic system," European Journal of Operational Research, Elsevier, vol. 234(3), pages 885-897.
    11. Roca, Jordi & Serrano, Monica, 2007. "Income growth and atmospheric pollution in Spain: An input-output approach," Ecological Economics, Elsevier, vol. 63(1), pages 230-242, June.
    12. Zeus Guevara & Oscar Córdoba & Edith X. M. García & Rafael Bouchain, 2017. "The Status and Evolution of Energy Supply and Use in Mexico Prior to the 2014 Energy Reform: An Input-Output Approach †," Economies, MDPI, Open Access Journal, vol. 5(1), pages 1-17, March.
    13. Cellura, Maurizio & Longo, Sonia & Mistretta, Marina, 2011. "The energy and environmental impacts of Italian households consumptions: An input–output approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(8), pages 3897-3908.
    14. Shigemi Kagawa & Hajime Inamura, 2004. "A Spatial Structural Decomposition Analysis of Chinese and Japanese Energy Demand: 1985-1990," Economic Systems Research, Taylor & Francis Journals, vol. 16(3), pages 279-299.
    15. Jan A van der Linden & Erik Dietzenbacher, 2000. "The determinants of structural change in the European Union: a new application of RAS," Environment and Planning A, Pion Ltd, London, vol. 32(12), pages 2205-2229, December.
    16. Meng, Bo & Chao, Qu, 2007. "Application of the Input-Output Decomposition Technique to China's Regional Economies," IDE Discussion Papers 102, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    17. Dirk van Seventer, 2015. "Compilation of annual mini SAMs for South Africa 1993-2013 in current and constant prices," WIDER Working Paper Series 138, World Institute for Development Economic Research (UNU-WIDER).
    18. Saari, M. Yusof & Dietzenbacher, Erik & Los, Bart, 2015. "Sources of Income Growth and Inequality Across Ethnic Groups in Malaysia, 1970–2000," World Development, Elsevier, vol. 76(C), pages 311-328.
    19. repec:bla:presci:v:96:y:2017:i:3:p:451-476 is not listed on IDEAS

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