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Regional input-output modelling in Germany: The case of North Rhine-Westphalia

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  • Kronenberg, Tobias
  • Többen, Johannes

Abstract

The political system of Germany is characterized by strong federalist elements, which means that many important decisions of economic policy are made by the governments of the federal states or Länder. Unfortunately the statistical offices of the Länder do not produce regional input-output tables, claiming that they lack the resources (i.e. manpower) to do so. The lack of official input-output tables for the Länder forms a significant obstacle to the study of regional economic developments and hampers the ability of economists to provide well-informed advice to regional policy-makers. A similar situation prevails in many other European countries. This paper attempts to meliorate the situation by describing the process of constructing a regional input-output table (RIOT) for North Rhine-Westphalia (NRW), the largest federal state in terms of GDP and population. A first approximation is produced by applying the CHARM method to the national input-output table on the basis of regional and national employment data. This first approximation is then improved upon by adding additional information from various sources, including the statistical office of NRW and the household survey of income and expenditure. We conclude that it is possible to construct a meaningful RIOT even when resources (time and money) are severely limited if the available information is used in an efficient manner.

Suggested Citation

  • Kronenberg, Tobias & Többen, Johannes, 2011. "Regional input-output modelling in Germany: The case of North Rhine-Westphalia," MPRA Paper 35494, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:35494
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    References listed on IDEAS

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    Cited by:

    1. Ehsan Qasemipour & Ali Abbasi & Farhad Tarahomi, 2020. "Water-Saving Scenarios Based on Input–Output Analysis and Virtual Water Concept: A Case in Iran," Sustainability, MDPI, vol. 12(3), pages 1-16, January.
    2. Ageliki Anagnostou & Pawel Gajewski, 2021. "Multi-Regional Input–Output Tables for Macroeconomic Simulations in Poland’s Regions," Economies, MDPI, vol. 9(4), pages 1-19, October.
    3. Marek Radvanský & Ivan Lichner, 2021. "An alternative approach to the construction of multi-regional input–output tables of the Czech Republic: application of the CHARM method," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 48(4), pages 1083-1111, November.
    4. Stöver, Britta, 2018. "The local impact and multiplier effect of universities in Lower Saxony on the labour market," Hannover Economic Papers (HEP) dp-646, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.

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    More about this item

    Keywords

    regional input-output table; nonsurvey method; hybrid method; location quotient; impact analysis;
    All these keywords.

    JEL classification:

    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models

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