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Spatial and Sectoral Aggregation in the Commodity-Industry Multiregional Input-Output Model

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  • R E Miller

    (Regional Science Department, University of Pennsylvania, Philadelphia, PA 19104, USA)

  • G Shao

    (Regional Economic Models Incorporated, Amherst, MA 01002, USA)

Abstract

In this paper, some experiments on the effect of aggregation in multiregional input-output (MRIO) models are reported. Sectoral aggregation and spatial aggregation are examined, separately and jointly, with use of hypothetical MRIO accounts and also with use of the 1977 US MRIO data. The spatial aggregation experiments constitute an extension and update of similar kinds of research reported on in a previous paper by Blair and Miller, in which hypothetical accounts and the 1963 US MRIO data were used. An important difference between the 1963 and 1977 data sets is that the latter are in the commodity-by-industry format. In the experiments reported here, it has been possible to deal with larger data sets for the least aggregated base cases, and the amount of data that is ‘covered up’ in the aggregations is therefore much larger. Nevertheless, it is still possible to conclude that spatial aggregation in MRIO models need not generate unacceptable error. The term error suggests that the most disaggregated data are always most accurate; because this position is not embraced by all input-output observers, we can alternatively describe the work in this paper as an investigation into the sensitivity of MRIO model results to sectoral and/or spatial aggregation.

Suggested Citation

  • R E Miller & G Shao, 1990. "Spatial and Sectoral Aggregation in the Commodity-Industry Multiregional Input-Output Model," Environment and Planning A, , vol. 22(12), pages 1637-1656, December.
    • Handle: RePEc:sae:envira:v:22:y:1990:i:12:p:1637-1656
    DOI: 10.1068/a221637
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    References listed on IDEAS

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    1. Ranko Bon, 1984. "Comparative Stability Analysis of Multiregional Input-Output Models: Column, Row, and Leontief-Strout Gravity Coefficient Models," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 99(4), pages 791-815.
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    Cited by:

    1. Ko, Jong-Hwan & Britz, Wolfgang, 2013. "Does Regional and Sectoral Aggregation Matter? Sensitivity Analysis in the Context of an EU-South Korea FTA," Conference papers 332358, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Eivind Lekve Bjelle & Johannes Többen & Konstantin Stadler & Thomas Kastner & Michaela C. Theurl & Karl-Heinz Erb & Kjartan-Steen Olsen & Kirsten S. Wiebe & Richard Wood, 2020. "Adding country resolution to EXIOBASE: impacts on land use embodied in trade," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-25, December.
    3. Schwarm, Walter R. & Jackson, Randall W. & Okuyama, Yasuhide, 2006. "An Evaluation of Method for Constructing Commodity by Industry Flow Matrices," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 36(1), pages 1-10.
    4. Jonathan Corcoran & Alan T. Murray & Robert J. Stimson, 2011. "Spatially Disaggregating Employment Growth Estimates," International Regional Science Review, , vol. 34(2), pages 138-156, April.
    5. Kjartan Steen-Olsen & Anne Owen & Edgar G. Hertwich & Manfred Lenzen, 2014. "Effects Of Sector Aggregation On Co 2 Multipliers In Multiregional Input-Output Analyses," Economic Systems Research, Taylor & Francis Journals, vol. 26(3), pages 284-302, September.
    6. Cuihong Yang & Erik Dietzenbacher & Jiansuo Pei & Xikang Chen & Kunfu Zhu & Zhipeng Tang, 2015. "Processing Trade Biases The Measurement Of Vertical Specialization In China," Economic Systems Research, Taylor & Francis Journals, vol. 27(1), pages 60-76, March.
    7. Park, Jiyoung & Park, Changkeun & Nam, Sangjeong, 2006. "The State-by-State Effects of Mad Cow Disease Using a New MRIO Model," 2006 Annual meeting, July 23-26, Long Beach, CA 21328, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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