Beyond Intermediates: The Role of Consumption and Commuting in the Construction of Local Input-Output Tables
1 Beyond Intermediates: The Role of Consumption and Commuting in the Construction of Local Input-Output Tables Dr Kristinn Hermannsson, Fraser of Allander Institute, Department of Economics, University of Strathclyde firstname.lastname@example.org Abstract 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:||May 2013|
|Date of revision:|
|Contact details of provider:|| Postal: Sir William Duncan Building, 130 Rottenrow, Glasgow G4 0GE|
Phone: +44 (0)141 548 3842
Fax: +44 (0)141 548 4445
Web page: http://www.strath.ac.uk/economics/
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.:
- Philip Mccann & John H. LL. Dewhurst, 1998.
"Regional Size, Industrial Location and Input-Output Expenditure Coefficients,"
Taylor & Francis Journals, vol. 32(5), pages 435-444.
- JH Ll DEWHURST, . "Regional Size, Industrial Location And Input-Output Expenditure Coefficients," Dundee Discussion Papers in Economics 074, Economic Studies, University of Dundee.
- 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.
- F J Harrigan & J W McGilvray & I H McNicoll, 1980. "Simulating the Structure of a Regional Economy," Environment and Planning A, SAGE Publishing, vol. 12(8), pages 927-936, August.
- 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.
- 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.
- 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.
- K G Willis, 1987. "Spatially Disaggregated input-output Tables: An Evaluation and Comparison of Survey and Nonsurvey Results," Environment and Planning A, SAGE Publishing, vol. 19(1), pages 107-116, January.
- 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,"
GE, Growth, Math methods
- 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.
- 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.
- 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.
- 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.
- 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.
- Natalie Stoeckl, 2012. "Comparing Multipliers from Survey and Non-Survey Based IO Models," International Regional Science Review, SAGE Publishing, vol. 35(4), pages 367-388, October.
When requesting a correction, please mention this item's handle: RePEc:str:wpaper:1305. 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: (Kirsty Hall)
If references are entirely missing, you can add them using this form.