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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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    File URL: https://mpra.ub.uni-muenchen.de/35494/1/MPRA_paper_35494.pdf
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    References listed on IDEAS

    as
    1. 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.
    2. Kuckshinrichs, Wilhelm & Kronenberg, Tobias & Hansen, Patrick, 2010. "The social return on investment in the energy efficiency of buildings in Germany," Energy Policy, Elsevier, vol. 38(8), pages 4317-4329, August.
    3. Tobias Kronenberg, 2009. "Construction of Regional Input-Output Tables Using Nonsurvey Methods," International Regional Science Review, , vol. 32(1), pages 40-64, January.
    4. Oosterhaven, Jan, 1984. "A family of square and rectangular interregional input-output tables and models," Regional Science and Urban Economics, Elsevier, vol. 14(4), pages 565-582, November.
    5. 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.
    6. Tobias Kronenberg, 2010. "Erstellung einer Input-Output-Tabelle für Mecklenburg-Vorpommern," AStA Wirtschafts- und Sozialstatistisches Archiv, Springer;Deutsche Statistische Gesellschaft - German Statistical Society, vol. 4(3), pages 223-248, September.
    7. 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.
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    More about this item

    Keywords

    regional input-output table; nonsurvey method; hybrid method; location quotient; impact analysis;

    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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