Adjustment of Input–Output Tables from Two Initial Matrices

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.

Interstateinput-output model for Mexico, 2013

“…The estimated systems are expected to be able to capture the existing specificities in the productive structure of each Mexican region and, in addition, contribute to the methodological debate on the estimation of interregional inputoutput systems under conditions of limited information (Hulu and Hewings, 1993;Riddington, Gibson and Anderson, 2006;Zhang, Shi and Zhao, 2015;Tobben and Kronenberg, 2015;Flegg et al, 2016). It also adds to a broader literature that deals with a large range of methods, extending from the earlier work of Jan Oosterhaven (1981), to Roy and Thill (2004) and the contributions of the entropy modelers starting with Alan Wilson (1970) and continuing with the cross entropy approaches of Esteban Fernandez- Vazquez et al (2015). 4 The paper is organized as follows: section 1 describes in detail the methodological procedure used in the construction of the interregional system for Mexico based on the IIOAS method.…”

Entropy-based Chinese city-level MRIO table framework

“…In practice, the preliminary matrix from the provincial proxy does not meet the requirements. The crossentropy model (CE) is therefore applied to adjusting the matrix to satisfy the constraints utilising prior information that is available from the preliminary matricesẐ andF (Fernandez Vazquez et al, 2015;McDougall, 1999). We combineẐ andF together into a new matrix which is a 42×47 matrix in this case (Figure 5).…”

Entropy maximization and input–output analysis

“…In the literature, this issue was raised by Lecomber (1969) in connection with his proposed modifications of the RAS technique when two or more (prior) matrices were available. The following discussion draws on a recent contribution by Fernandez-Vazquez, Hewings, and Ramos-Carvajal (2015).…”