A Flexible Mathematical Programming Model to Estimate Interregional Input-Output Accounts*

Abstract

This study implements and tests a mathematical programming model to estimate interregional, interindustry transaction flows in a national system of economic regions based on an interregional accounting framework and initial information of interregional shipments. A national input-output (IO) table, regional data on gross output, value-added, exports, imports, and final demand at sector level are used as inputs to generate an interregional IO account that reconciles regional economic statistics and interregional transaction data. The model is tested using data from a multiregional global IO database and shows remarkable capacity to discover true interregional trade patterns from highly distorted initial estimates.

Trade, production fragmentation, and China's carbon dioxide emissions

“…Adopting the consumption-based approach, input-output (IO) techniques have contributed to more accurate estimates of pollution, in particular the emissions embodied in trade flows. 2 The issue is also relevant for policy debates, as witnessed by the question on whether China should be held accountable for all of its emissions. Weber et al [49], for example, have estimated that roughly one third of China's carbon dioxide (CO 2 ) emissions were due to exports and thus 'on behalf of foreign consumers'.…”

Methods for regionalizing input-output tables

“…Based on Canning and Wang (2005), we can reformulate the problem as follows: ∑ ∑ ∑ ∑ . In this sense, total output in region r ( ) is allocated between intraregional ( ), interregional intermediate use ( ) and intra-( ), interregional final consumption ( ) and international export ( ).…”

Accounting foundations for interregional commodity-by-industry input-output models

“…In a US interregional context, Canning and Wang (2005) presented a method for generating interregional IO data, Jackson et al (2006) described an approach to estimating interregional commodity flows, Lindall et al (2006) discussed multi-region models in the IMPLAN framework, and Schwarm et al (2006) and Robinson and Liu (2006) provided comparisons of the results of selected techniques to published flow data and to one another. Yet no works to date focus directly on the conceptual implications of modeling decisions and assumptions in the context of the interregional IO and the commodity-by-industry format of the U.S. national benchmark accounts (U.S. Department of Commerce 2007).…”