Projecting supply and use tables: new variants and fair comparisons

Abstract

We have introduced in this paper new variants of two methods for projecting Supply and Use Tables that are based on a distance minimisation approach (SUT-RAS) and the Leontief model (SUT-EURO). We have also compared them under similar and comparable exogenous information, i.e.: with and without exogenous industry output, and with explicit consideration of taxes less subsidies on products. We have conducted an empirical assessment of all of these methods against a set of annual tables between 2000 and 2005 for Austria, Belgium, Spain and Italy. From the empirical assessment, we obtained three main conclusions: (a) the use of extra information (i.e. industry output) generally improves projected estimates in both methods; (b) whenever industry output is available, the SUT-RAS method should be used and otherwise the SUT-EURO should be used instead; and (c) the total industry output is best estimated by the SUT-EURO method when this is not available.

The Euro and SUT-RAS methods: some further considerations

“…Thus, when reliable estimates of output by industry exist, the exo-SUT-RAS or GRAS-1 methods perform better used than do SUT-Euro setups. If such a reliable estimates of output by industry do not exist, it is clear that the endo-SUT-Euro approach performs better than all others considered by Valderas-Jaramillo et al (2019). Hence, Temursho supports and even reinforces our findings.…”

“…Notwithstanding the insights and developments revealed by Temursho about the details of the SUT-Euro method in its different variants (most of them already familiar to Euro users to some extent) and his excellent mathematical formalizations, we believe that none of the arguments that we (Valderas-Jaramillo et al, 2019) presented are questioned. Actually, we find that some of Temursho's thoughts on related aspects require further clarification and yet others are simply misleading.…”

“…[equation] (9)'. This is done, despite that the constant market-share hypothesis has always been part of the core of all the existing Euro versions (Beutel, 2002(Beutel, , 2008Valderas-Jaramillo et al, 2019), and commodity output (q) is estimated in the same way as in the standard Euro method (see equations 1.14 and 1.8 in Temursho, 2020). Indeed, as a result, the Supply and Use matrices are jointly derived as an integrating part of the updating process even though Temursho states that the Euro method fails to fulfil this as one of its advantages listed in Eurostat (2008).…”

Rebound effects and green growth – An examination of their relationship in a parsimonious equilibrium input-output-framework

“…I/O tables which are no longer up to date, for instance because undertaking surveys is resource intensive, cannot produce reliable results. This is why methods for projecting I/O tables have gained increasing support in the literature (Valderas-Jaramillo et al., 2018). However, in a technologically dynamic environment, I/O coefficients are subject to continuous changes.…”

Improving the European input–output database for global trade analysis

“…Following the approach of Rueda-Cantuche et al 2017, the missing supply and use tables (SUTs) at basic prices were estimated using the SUT-EURO method as in Valderas- Jaramillo et al (2018) (Fig. 2).…”