Beyond Intermediates: The Role of Consumption and Commuting in the Construction of Local Input-Output Tables
It is a well-established fact in the literature on simulating Input-Output tables that mechanical methods for estimating intermediate trade lead to biased results where cross-hauling is underestimated and Type-I multipliers are overstated. Repeated findings to this effect have led to a primary emphasis on advocating the accurate estimation of intermediate trade flows. This paper reviews previous research and argues for a qualification of the consensus view: When simulating IO tables, construction approaches need to consider spill-over effects driven by wage and consumption flows. In particular, for the case of metropolitan economies, wage and consumption flows are important if accurate Type-II multipliers are to be obtained. This is demonstrated by constructing an interregional Input-Output table, which captures interdependencies between a city and its commuter belt, nested within the wider regional economy. In addition to identifying interdependencies caused by interregional intermediate purchases, data on subregional household incomes and commuter flows are used to identify interdependencies from wage payments and household consumption. The construction of the table is varied around a range of assumptions on intermediate trade and household consumption to capture the sensitivity of multipliers.
|Date of creation:||2013|
|Date of revision:|
|Contact details of provider:|| Postal: 31 Buccleuch Place, EH8 9JT, Edinburgh|
Web page: http://www.sire.ac.uk
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Steven Brand, 1997. "On the Appropriate Use of Location Quotients in Generating Regional Input-Output Tables: A Comment," Regional Studies, Taylor & Francis Journals, vol. 31(8), pages 791-794.
- A. T. Flegg & C. D. Webber, 2000. "Regional Size, Regional Specialization and the FLQ Formula," Regional Studies, Taylor & Francis Journals, vol. 34(6), pages 563-569.
- Harrigan, F J & McGilvray, J W & McNicoll, I H, 1980. "A Comparison of Regional and National Technical Structures," Economic Journal, Royal Economic Society, vol. 90(363), pages 795-810, December.
- Michael Lahr & Louis de Mesnard, 2004.
"Biproportional Techniques in Input-Output Analysis: Table Updating and Structural Analysis,"
Economic Systems Research,
Taylor & Francis Journals, vol. 16(2), pages 115-134.
- Michael L. Lahr & Louis De Mesnard, 2004. "Biproportional Techniques in Input-Output Analysis: Table Updating and Structural Analysis," Post-Print halshs-00068608, HAL.
- Michael Lahr & Louis de Mesnard, 2004. "Biproportional Techniques in Input-Output Analysis: Table Updating and Structural Analysis," GE, Growth, Math methods 0403006, EconWPA.
- Timo Tohmo, 2004. "New Developments in the Use of Location Quotients to Estimate Regional Input-Output Coefficients and Multipliers," Regional Studies, Taylor & Francis Journals, vol. 38(1), pages 43-54.
- M H Robison & J R Miller, 1988. "Cross-hauling and nonsurvey input - output models: some lessons from small-area timber economies," Environment and Planning A, Pion Ltd, London, vol. 20(11), pages 1523-1530, November.
- A. T. Flegg & C. D. Webber, 1997. "On the Appropriate Use of Location Quotients in Generating Regional Input-Output Tables: Reply," Regional Studies, Taylor & Francis Journals, vol. 31(8), pages 795-805.
- Natalie Stoeckl, 2012. "Comparing Multipliers from Survey and Non-Survey Based IO Models," International Regional Science Review, , vol. 35(4), pages 367-388, October.
- JH Ll DEWHURST, .
"Regional Size, Industrial Location And Input-Output Expenditure Coefficients,"
Dundee Discussion Papers in Economics
074, Economic Studies, University of Dundee.
- Philip Mccann & John H. LL. Dewhurst, 1998. "Regional Size, Industrial Location and Input-Output Expenditure Coefficients," Regional Studies, Taylor & Francis Journals, vol. 32(5), pages 435-444.
- K G Willis, 1987. "Spatially Disaggregated input-output Tables: An Evaluation and Comparison of Survey and Nonsurvey Results," Environment and Planning A, , vol. 19(1), pages 107-116, January.
- Snickars, Folke & Weibull, Jorgen W., 1977. "A minimum information principle : Theory and practice," Regional Science and Urban Economics, Elsevier, vol. 7(1-2), pages 137-168, March.
- Richard Harris & Aying Liu, 1998. "Input-Output Modelling of the Urban and Regional Economy: The Importance of External Trade," Regional Studies, Taylor & Francis Journals, vol. 32(9), pages 851-862.
- M. Henry Robison, 1997. "Community input-output models for rural area analysis with an example from central Idaho," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 31(3), pages 325-351.
- Andrea Bonfiglio, 2009. "On The Parameterization Of Techniques For Representing Regional Economic Structures," Economic Systems Research, Taylor & Francis Journals, vol. 21(2), pages 115-127.
- F J Harrigan & J W McGilvray & I H McNicoll, 1980. "Simulating the Structure of a Regional Economy," Environment and Planning A, , vol. 12(8), pages 927-936, August.
- Deborah Roberts, 2005. "The role of households in sustaining rural economies: a structural path analysis," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 32(3), pages 393-420, September.
When requesting a correction, please mention this item's handle: RePEc:edn:sirdps:451. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gina Reddie)
If references are entirely missing, you can add them using this form.