IDEAS home Printed from https://ideas.repec.org/a/gam/jmathe/v10y2022i9p1474-d803940.html
   My bibliography  Save this article

Spotting Error Patterns in Input–Output Projections Using Location Quotients

Author

Listed:
  • Xesús Pereira-López

    (Department of Quantitative Economics, University of Santiago de Compostela, 27002 Santiago de Compostela, Spain
    Institute of Development Studies of Galicia (IDEGA), University of Santiago de Compostela, 15706 Santiago de Compostela, Spain)

  • Napoleón Guillermo Sánchez-Chóez

    (Institute of Development Studies of Galicia (IDEGA), University of Santiago de Compostela, 15706 Santiago de Compostela, Spain
    Department of Organizational Studies and Human Development, National Polytechnic School, Quito 170525, Ecuador)

  • Melchor Fernández-Fernández

    (Institute of Development Studies of Galicia (IDEGA), University of Santiago de Compostela, 15706 Santiago de Compostela, Spain
    Department of Fundamentals of Economic Analysis, University of Santiago de Compostela, 15782 Santiago de Compostela, Spain)

Abstract

The Sustainable Development Goals (SDGs) stated by the United Nations (UN) constitute a universal agenda committed to human rights. In this context, mathematics can perform a fundamental role. Exploring possible contributions to these goals could be considered an interesting approach. Input–output (IO) tables provide detailed information for socio-economic quantifications. Thus, they allow for more precise policy decision-making and application in the SDG strategy. However, the smaller the subnational unit to be considered, the less statistical information that is available. Survey-based IO tables with large product/industry disaggregation are seldom published. Therefore, non-survey methods to estimate subnational IO tables based on the national are needed. These methodologies should yield optimal results. In the present investigation, different formulations for these non-survey regionalization methods are analyzed. The work focuses on the methodologies based on location quotients ( LQ ). As a result, some error patterns associated with current formulations present in literature are described. A slight refinement of these methodologies is proposed in order to improve the estimation’s accuracy.

Suggested Citation

  • Xesús Pereira-López & Napoleón Guillermo Sánchez-Chóez & Melchor Fernández-Fernández, 2022. "Spotting Error Patterns in Input–Output Projections Using Location Quotients," Mathematics, MDPI, vol. 10(9), pages 1-19, April.
    • Handle: RePEc:gam:jmathe:v:10:y:2022:i:9:p:1474-:d:803940
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7390/10/9/1474/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7390/10/9/1474/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. William A. Schaffer & Kong Chu, 1969. "Nonsurvey Techniques For Constructing Regional Interindustry Models," Papers in Regional Science, Wiley Blackwell, vol. 23(1), pages 83-104, January.
    2. A. T. Flegg & C. D. Webber, 1997. "On the Appropriate Use of Location Quotients in Generating Regional Input-Output Tables: Reply," Regional Studies, Taylor & Francis Journals, vol. 31(8), pages 795-805.
    3. A. T. Flegg & C. D. Webber, 2000. "Regional Size, Regional Specialization and the FLQ Formula," Regional Studies, Taylor & Francis Journals, vol. 34(6), pages 563-569.
    4. Andrea Bonfiglio & Francesco Chelli, 2008. "Assessing the Behaviour of Non-Survey Methods for Constructing Regional Input-Output Tables through a Monte Carlo Simulation," Economic Systems Research, Taylor & Francis Journals, vol. 20(3), pages 243-258.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tobias Kronenberg, 2012. "Regional input-output models and the treatment of imports in the European System of Accounts (ESA)," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 32(2), pages 175-191, September.
    2. Kronenberg, Tobias & Többen, Johannes, 2011. "Regional input-output modelling in Germany: The case of North Rhine-Westphalia," MPRA Paper 35494, University Library of Munich, Germany.
    3. Institut für Wirtschaftsforschung Halle (Ed.), 2013. "Neuere Anwendungsfelder der Input-Output-Analyse: Beiträge zum Halleschen Input-Output-Workshop 2012," IWH-Sonderhefte 1/2013, Halle Institute for Economic Research (IWH).
    4. Xiaoyun Zhao & Sung-Goan Choi, 2015. "On the regionalization of input–output tables with an industry-specific location quotient," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(3), pages 901-926, May.
    5. Kristinn Hermannsson, 2016. "Beyond Intermediates: The Role of Consumption and Commuting in the Construction of Local Input–Output Tables," Spatial Economic Analysis, Taylor & Francis Journals, vol. 11(3), pages 315-339, July.
    6. Xesús Pereira-López & Napoleón Guillermo Sánchez-Chóez & Melchor Fernández-Fernández, 2021. "Performance of bidimensional location quotients for constructing input–output tables," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 10(1), pages 1-16, December.
    7. Marek Radvanský & Ivan Lichner, 2021. "An alternative approach to the construction of multi-regional input–output tables of the Czech Republic: application of the CHARM method," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 48(4), pages 1083-1111, November.
    8. Anthony T. Flegg & Leonardo J. Mastronardi & Carlos A. Romero, 2014. "Empirical evidence on the use of the FLQ formula for regionalizing national input-output tables: The case of the Province of C¨®rdoba, Argentina," Working Papers 20141406, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
    9. Johannes Többen & Tobias Heinrich Kronenberg, 2015. "Construction Of Multi-Regional Input--Output Tables Using The Charm Method," Economic Systems Research, Taylor & Francis Journals, vol. 27(4), pages 487-507, December.
    10. Kronenberg, Tobias, 2011. "Regional input-output models and the treatment of imports in the European System of Accounts," MPRA Paper 30797, University Library of Munich, Germany.
    11. Yu. Yu. Ponomarev & D. Yu. Evdokimov, 2021. "Construction of Truncated Input–Output Tables for Russian Regions Using Location Quotients," Studies on Russian Economic Development, Springer, vol. 32(6), pages 619-630, November.
    12. Andrea BONFIGLIO, 2008. "Evaluating Implications of Agricultural Policies in a Rural Region through a CGE Analysis," Working Papers 328, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    13. Jeroen Klijs & Meghann Ormond & Tomas Mainil & Jack Peerlings & Wim Heijman, 2016. "A state-level analysis of the economic impacts of medical tourism in Malaysia," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 30(1), pages 3-29, May.
    14. Kowalewski Julia, 2013. "Inter-industrial Relations and Sectoral Employment Development in German Regions," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 233(4), pages 486-504, August.
    15. Yu, Yang & Hubacek, Klaus & Feng, Kuishuang & Guan, Dabo, 2010. "Assessing regional and global water footprints for the UK," Ecological Economics, Elsevier, vol. 69(5), pages 1140-1147, March.
    16. Lankhuizen, Maureen & Boonstra, Harm Jan & de Blois, Chris, 2020. "Unpacking freight – Identifying conditions driving regional freight transport in statistics," Transportation Research Part A: Policy and Practice, Elsevier, vol. 132(C), pages 415-435.
    17. Cristian Mardones & Darling Silva, 2021. "Estimation of regional input coefficients and output multipliers for the regions of Chile," Papers in Regional Science, Wiley Blackwell, vol. 100(4), pages 875-889, August.
    18. Cristian Mardones & Darling Silva, 2023. "Evaluation of Non-survey Methods for the Construction of Regional Input–Output Matrices When There is Partial Historical Information," Computational Economics, Springer;Society for Computational Economics, vol. 61(3), pages 1173-1205, March.
    19. José Daniel Buendía Azorín & Rubén Martínez Alpañez & Maria del Mar Sánchez de la Vega, 2022. "A new proposal to model regional input–output structures using location quotients. An application to Korean and Spanish regions," Papers in Regional Science, Wiley Blackwell, vol. 101(5), pages 1219-1237, October.
    20. Tony Flegg & Leonardo J. Mastronardi & Carlos A. Romero, 2015. "Evaluating the FLQ and AFLQ formulae for estimating regional input coefficients: empirical evidence for the province of C¨®rdoba, Argentina," Working Papers 20151508, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jmathe:v:10:y:2022:i:9:p:1474-:d:803940. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.