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Survey-based versus algorithm-based multi-regional input–output tables within the CGE framework – the case of Austria

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  • Bartlomiej Rokicki
  • Oliver Fritz
  • Jonathan M. Horridge
  • Geoffrey J. D. Hewings

Abstract

Spatial CGE models rely on detailed multiregional input–output (MRIO) tables. This paper compares two different approaches to compiling MRIO tables for Austria – an algorithm-based approach that regionalizes national input–output tables (IOT) and generates trade estimates using a predefined set of regional variables (i.e. Horridge’s algorithm), and a hybrid approach that uses as much regional and interregional data as possible. We investigate whether we observe differences in CGE simulation results that use them. Results from an aggregate simulation are surprisingly similar. So the algorithmic approach is, in fact, effective in making an MRIO from a national IOT. But noticeable differences appear at the sectoral level. They seem mainly due to differences in calibration rather than in regionalization.

Suggested Citation

  • Bartlomiej Rokicki & Oliver Fritz & Jonathan M. Horridge & Geoffrey J. D. Hewings, 2021. "Survey-based versus algorithm-based multi-regional input–output tables within the CGE framework – the case of Austria," Economic Systems Research, Taylor & Francis Journals, vol. 33(4), pages 470-491, October.
    • Handle: RePEc:taf:ecsysr:v:33:y:2021:i:4:p:470-491
    DOI: 10.1080/09535314.2020.1839385
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    Cited by:

    1. Luka Vukić & Davor Mikulić & Damira Keček, 2021. "The Impact of Transportation on the Croatian Economy: The Input–Output Approach," Economies, MDPI, vol. 9(1), pages 1-16, January.

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