Bridging between economy-wide activity and household-level consumption data: Matrices for European countries

Cai, Mattia; Vandyck, Toon

doi:10.1016/j.dib.2020.105395

Cited by 20 publications

(17 citation statements)

References 7 publications

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“…This is particularly relevant for the work we present here, as this feature facilitates the link with the microdata in the Household Budget Survey, which contains expenditure patterns in the COICOP classification for products. Recent bridging matrices for all EU countries have been made available publicly for all EU countries by Cai and Vandyck (2020) . Further details on the mapping of consumption categories is presented in Supplementary Table 1.…”

Section: Methodological Frameworkmentioning

confidence: 99%

Climate policy design, competitiveness and income distribution: A macro-micro assessment for 11 EU countries

et al. 2021

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Concerns about industry competitiveness and distributional impacts can deter ambitious climate policies. Typically, these issues are studied separately, without giving much attention to the interaction between the two. Here, we explore how carbon leakage reduction measures affect distributional outcomes across households within 11 European countries by combining an economy-wide computable general equilibrium model with a household-level microsimulation model. Quantitative simulations indicate that a free allocation of emission permits to safeguard the competitive position of energy-intensive trade-exposed industries leads to impacts that are slightly more regressive than under full auctioning. We identify three channels that contribute to this effect: higher capital and labour income; lower tax revenue for compensating low-income households; and stronger consumption price increases following from higher carbon prices needed to reach the same emissions target. While these findings suggest a competitiveness-equity trade-off, the results also show that redistributing the revenues from partial permit auctioning on an equal-per-household basis still ensures that climate policy is progressive, indicating that there is room for policy to reconcile competitiveness and equity concerns. Finally, we illustrate that indexing social benefits to consumer price changes mitigates pre-revenue-recycling impact regressivity, but is insufficient to compensate vulnerable households in the absence of other complementary measures.

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Section: Methodological Frameworkmentioning

confidence: 99%

Climate policy design, competitiveness and income distribution: A macro-micro assessment for 11 EU countries

et al. 2021

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“…We also found that while using an official table as a prior, even if randomly selected, it outperforms recent methods such as the count-seed RAS Vandyck, 2020 andRueda-Cantuche, 2019) and significantly outperforms the naïve prior.…”

Section: Discussionmentioning

confidence: 71%

“…Note: * The results of the 'Most distant' are already in the figure without Denmark (the numbers shown in brackets), and below we exclude it as a benchmark contingency table for these reasons. * * In this case the comparison is performed at the more aggregated level of the tables of Cai and Vandyck (2020), which is essentially the same as CPA, and with 35 (instead of 47) COICOP accounts. Their tables for these 8 countries are also compared to the aggregated official contingency ones.…”

Section: Similarities Across Official Contingency Matricesmentioning

confidence: 99%

“…An alternative would have been constructing them based on the Eurostat (2018b) correspondence. • Count-seed RAS: Cai and Vandyck (2020) recently estimated contingency tables for the European Union using the count-seed RAS method (Cai & Rueda-Cantuche, 2019) in which a single benchmark matrix is constructed by counting the number of items that simultaneously contribute to a given aggregate cell of the table in a disaggregated mapping between CPA and COICOP (3 000 CPA categories and more than 100 COICOP ones); then a RAS is used until convergence.…”

Section: Similarities Across Official Contingency Matricesmentioning

confidence: 99%

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Linking multisectoral economic models and consumption surveys for the European Union

Cazcarro

Amores

Arto

et al. 2020

Economic Systems Research

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Multisectoral models usually have a single representative household. However, more diversity of household types is needed to analyse the effects of multiple phenomena (i.e. ageing, gender inequality, distributional income impact, etc.). Household consumption surveys' microdata is a rich data source for these types of analysis. However, feeding multisectoral models with this type of information is not simple and recent studies show how even slightly inaccurate procedures might result in significantly biased results. This paper presents the full procedure for feeding household consumption microdata into macroeconomic models and for the first time provides in a systematic way an estimation of the bridge matrices needed to link European Union Household Budget Surveys' microdata with the most popular multi-regional input-output frameworks (e.g. Eurostat, WIOD, EORA, OECD).

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“…This causes difficulties in the distribution of final household demand in the productive sectors, differentiating it by age group. Therefore, it was necessary to construct a conversion matrix that related consumption groups with the sectors on the basis of the matrix created by Cai and Vandick [23] to achieve a correspondence between the household consumption groups (as classified by COICOP) and the sectors (as classified by CPA).…”

Section: Ghg Emissions By Productive Sectormentioning

confidence: 99%

Environmental Changes Produced by Household Consumption

Martínez

Cámara

2021

Energies

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This paper analyzes the impact of the fall in household consumption after an economic crisis in Spain on greenhouse gas emissions. To this end, household consumption is differentiated by the age of the main provider by using a conversion matrix that relates consumption groups to activity sectors. A multisectoral model was used to quantify and compare the environmental impact caused by the consumption of each age group, indicating that the older the age of the main household provider, the smaller the reduction in GHG emissions associated with their consumption. The results facilitate an analysis of how the greenhouse gas emissions of the different sectors of the Spanish economy, associated with the population under study, varied before and after the 2008 crisis, and confirm that the sectors with the greatest reduction in emissions were, in this order, extractive industries, construction, manufacturing industry, wholesale and retail trade and transport and storage. This is relevant for decision making in the field of environmental policies in crises, akin to the one the world is currently experiencing.

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Bridging between economy-wide activity and household-level consumption data: Matrices for European countries

Cited by 20 publications

References 7 publications

Climate policy design, competitiveness and income distribution: A macro-micro assessment for 11 EU countries

Climate policy design, competitiveness and income distribution: A macro-micro assessment for 11 EU countries

Linking multisectoral economic models and consumption surveys for the European Union

Environmental Changes Produced by Household Consumption

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