Compilation Of Input‐Output Tables: Canada

This paper provides a description of the annual Input‐Output Tables for Canada. It describes the accounting framework and notes its close affinity to the one described in the United Nations report, A System of National Accounts. It demonstrates the ready derivation of GDP and Expenditure on GDP, both in current and constant prices, from the Input‐Output Accounts as well as their relationship to the other subsystems of the Canadian System of National Accounts, particularly the Income and Expenditure Accounts and Real Domestic Product by Industry. Compatibility of basic accounting records of the transactors with the rectangular (commodity‐industry) format of the Canadian tables is described. The need to have a consistent commodity classification and to develop a consistent valuation of all transactors in the economy is emphasized. The particular formulation of the Input‐Output Impact tables is noted. The problem of deflating trade margins and the resolution of this problem is described. A strong plea is made for the economics profession to pay more attention to the problem of aggregation; all economic analysis is approached with blinkers but the aggregation problem isn't even recognized as a blind spot in most analyses.