This paper focuses attention on the concept of accuracy in regional input-output tables. Two interpretations of accuracy, namely partitive and holistic accuracy, are discussed with reference to interpretation of input-output tables. Implications are drawn from recent contributions to the regional input-output literature in terms of the `reconciliation' debate and the survey versus non-survey debate. Holistic accuracy is the only concept which is tenable in practice; some suggested criteria for holistic accuracy are provided.
This paper provides a measure of the effect of relative coefficient size on input–output multipliers. Fourteen input–output tables, including a national table and tables for state, metropolitan region, city, rural town, and large and small rural region economies are included in experiments which measure the effect on output, income, and employment multipliers of (1) removal with replacement and (2) cumulative removal without replacement of coefficients from the A matrix. The experimental results illustrate the dominant role of the larger coefficients in multiplier formation and enable the derivation of a multiplier accuracy-maximising approach to table preparation.
The performance of six alternative measures of input-output model interconnectedness was tested on a set of fourteen empirical models for Australia, for the State of Queensland, and for subregions within Queensland. Such measures of interconnectedness could be analytically useful, along with the input-output models themselves, as descriptions of the nature of the modeled economies, as aids in model estimation, and perhaps as indications of the level of economic development. Since there is no generally accepted interconnectedness measure, the six tested measures could be judged only on their consistency of behavior and on the validity of their underlying logic. Accounting conventions and model aggregation both affected most of the measures. The results suggest that mean intermediate coefficient total per sector is the most generally useful interconnectedness measure.The concept of interconnectedness is implicit in input-output methodology. Such models are used to describe the relationships among the component sectors of an economy. Multipliers give numeric measure to the relation of a given sector to the total economy. Yet there has been only minimal attention given to holistic measures, summarizing the degree of interconnectedness of the entire modeled economy. Such measures of interconnectedness could be analytically useful, along with the inputoutput models themselves, as descriptions of the nature of the modeled economies, as aids in model estimation, and perhaps as indicators of the level of economic development.This paper will examine the performance of a number of potential measures of model interconnectedness as they are applied to a set of consistent input-output models for Australia, for the State of Queensland, and for a number of regions within Queensland.It is clear that various economies differ in degree of interconnectedness. In an economy characterized by high interconnection, a shock will be churned by successive rounds of intersectoral transactions, with the result of substantial changes in all other sectors. In a less interconnected economy, lack of intersectoral linkages means that the effects of a shock will be confined mainly to the directly impacted industry. The differences observed may be attributed to variations in degree of closure and differences in structure between economies. If an economy is relatively open, external trade will take the place of some potential linkages among endogenous sectors. For economies similar in degree of openness, one would still expect variations in interconnectedness due to structural differences; differences in what industries are important to each economy, and differences in the production technologies used. An empirical measure of interconnectedness could serve as a useful descriptive statistic, giving insight into the extent to which intersectoral linkages serve to transmit impacts throughout the sectors of an economy.
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