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Can supply, use and input–output tables be converted to a different classification with aggregate information?

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  • José M. Rueda-Cantuche
  • Antonio F. Amores
  • Isabelle Remond-Tiedrez

Abstract

Every change in the product and/or industry classifications and/or methodology of supply, use and input–output tables makes any medium- to long-term policy analysis impossible unless appropriate conversions are provided by national statistical institutes using more detailed data. However, can these tables be reasonably converted to a different classification of industries and products using aggregate information? We develop a conversion method that allows changes in classification that are independent of the number of industries and products. In addition, we provide evidence about its empirical performance compared with projection methods. We find projection methods perform better than conversion methods, at least when using aggregate information. Nonetheless, unlike conversion methods, projection methods generally require supply, use and input–output tables in the new classification that might not always be available. In their absence, we recommend using more detailed and sophisticated data.

Suggested Citation

  • José M. Rueda-Cantuche & Antonio F. Amores & Isabelle Remond-Tiedrez, 2020. "Can supply, use and input–output tables be converted to a different classification with aggregate information?," Economic Systems Research, Taylor & Francis Journals, vol. 32(1), pages 145-165, January.
    • Handle: RePEc:taf:ecsysr:v:32:y:2020:i:1:p:145-165
    DOI: 10.1080/09535314.2019.1655393
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