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Double Deflation and Aggregation

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  • E Dietzenbacher
  • A R Hoen

Abstract

Published input—output tables in constant prices are relatively scarce. Therefore, input—output tables often have to be deflated by the practitioners themselves. The method of double deflation is used predominantly for this purpose. The present paper shows that the double-deflation method is subject to aggregation problems. Necessary and sufficient conditions for the double-deflation method to provide the correct answers are derived. The conditions are found to be stringent and unlikely to be met in empirical cases. The results for aggregation in the case of double deflation are shown to be dual to the traditional results for aggregation in the case of a quantity model, which have been extensively discussed in the literature.

Suggested Citation

  • E Dietzenbacher & A R Hoen, 1999. "Double Deflation and Aggregation," Environment and Planning A, , vol. 31(9), pages 1695-1704, September.
    • Handle: RePEc:sae:envira:v:31:y:1999:i:9:p:1695-1704
    DOI: 10.1068/a311695
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    Cited by:

    1. Erik Dietzenbacher & Umed Temurshoev, 2012. "Input-output impact analysis in current or constant prices: does it matter?," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 1(1), pages 1-18, December.
    2. Lan, Jun & Malik, Arunima & Lenzen, Manfred & McBain, Darian & Kanemoto, Keiichiro, 2016. "A structural decomposition analysis of global energy footprints," Applied Energy, Elsevier, vol. 163(C), pages 436-451.
    3. Azlina Abdullah & Hussain Ali Bekhet, 2019. "Investigating the Driving Forces of Energy Intensity Change in Malaysia 1991-2010: A Structural Decomposition Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 9(4), pages 121-130.
    4. López, Xesús Pereira & de la Torre Cuevas, Fernando, 2023. "An alternative for tracing the path between supply and use tables in current and constant prices," Structural Change and Economic Dynamics, Elsevier, vol. 67(C), pages 293-302.
    5. repec:eco:journ2:2017-04-31 is not listed on IDEAS
    6. Dietzenbacher, Erik & Kulionis, Viktoras & Capurro, Filippo, 2020. "Measuring the effects of energy transition: A structural decomposition analysis of the change in renewable energy use between 2000 and 2014," Applied Energy, Elsevier, vol. 258(C).

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