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Adjustment of Input-Output Tables from Two Initial Matrices

Author

Listed:
  • Esteban Fernandez Vazquez
  • Geoffrey J. D. Hewings
  • Carmen Ramos Carvajal
Abstract
The compilation of the information required to construct survey-based input-output (I-O) tables consumes resources and time to statistical agencies. Consequently, a number of non-survey techniques have been developed in the last decades to estimate I-O tables. These techniques usually depart from observable information on the row and column margins, and then the cells of the matrix are adjusted using as a priori information a matrix from a past period (updating) or an I-O table from the same time period (regionalization). This paper proposes the use of a composite cross-entropy approach that allows for introducing both types of a priori information. The suggested methodology is suitable to be applied only to matrices with semi-positive interior cells and margins. Numerical simulations and an empirical application are carried out, where an I-O table for the Euro Area is estimated with this method and the result is compared with the traditional projection techniques.

Suggested Citation

  • Esteban Fernandez Vazquez & Geoffrey J. D. Hewings & Carmen Ramos Carvajal, 2015. "Adjustment of Input-Output Tables from Two Initial Matrices," Economic Systems Research, Taylor & Francis Journals, vol. 27(3), pages 345-361, September.
    • Handle: RePEc:taf:ecsysr:v:27:y:2015:i:3:p:345-361
    DOI: 10.1080/09535314.2015.1007839
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    Cited by:

    1. Anthony T. Flegg & Guiseppe R. Lamonica & Francesco M. Chelli & Maria C. Recchioni & Timo Tohmo, 2021. "A new approach to modelling the input–output structure of regional economies using non-survey methods," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 10(1), pages 1-31, December.
    2. Esteban Fernández-Vázquez & Blanca Moreno, 2017. "Entropy Econometrics for combining regional economic forecasts: A Data-Weighted Prior Estimator," Journal of Geographical Systems, Springer, vol. 19(4), pages 349-370, October.
    3. Gabela, Julio Gustavo Fournier, 2020. "On the accuracy of gravity-RAS approaches used for inter-regional trade estimation: evidence using the 2005 inter-regional input–output table of Japan," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 32(4), pages 521-539.
    4. Ryoko Morioka & Keisuke Nansai & Koji Tsuda, 2018. "Role of linkage structures in supply chain for managing greenhouse gas emissions," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 7(1), pages 1-21, December.

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