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A New Technique for the Construction of Non-Survey Regional Input-Output Models

Author

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  • Benjamin H. Stevens

    (Regional Science Research Institute, 256 North Pleasant Street, Amherst, MA 01002 USA)

  • George I. Treyz

    (Department of Economics, University of Massachusetts, Amherst, MA 01003 USA)

  • David J. Ehrlich

    (Regional Science Research Institute, 256 North Pleasant Street, Amherst, MA 01002 USA)

  • James R. Bower

    (Regional Science Research Institute, 256 North Pleasant Street, Amherst, MA 01002 USA)

Abstract

A technique for creating regional input-output models based on national input-output technological coefficients is developed and tested. The Regional Purchase Coefficient (RPC), i.e., the proportion of regional demand fulfilled from regional production, is based on substitution between extra-and intra-regional sources in response to relative delivered costs. An RPC estimating equation is fitted using state economic and interstate transportation data. RPCs for all sectors are estimated for use in constructing 500-sector non-survey models for Washington and West Virginia. The A matrices, inverse matrices, and multipliers for suitable aggregations of these models are compared with the corresponding components of recent survey-based models for the same two states. The comparisons indicate that the RPC technique can provide at low cost models that are acceptably accurate for use in regional impact analysis.

Suggested Citation

  • Benjamin H. Stevens & George I. Treyz & David J. Ehrlich & James R. Bower, 1983. "A New Technique for the Construction of Non-Survey Regional Input-Output Models," International Regional Science Review, , vol. 8(3), pages 271-286, December.
    • Handle: RePEc:sae:inrsre:v:8:y:1983:i:3:p:271-286
    DOI: 10.1177/016001768300800306
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    References listed on IDEAS

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    1. G J D Hewings & B N Janson, 1980. "Exchanging Regional Input—Output Coefficients: A Reply and Further Comments," Environment and Planning A, , vol. 12(7), pages 843-854, July.
    2. 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.
    3. G J D Hewings, 1977. "Evaluating the Possibilities for Exchanging Regional Input—Output Coefficients," Environment and Planning A, , vol. 9(8), pages 927-944, August.
    4. Treyz, George I & Friedlaender, Ann F & Stevens, Benjamin H, 1980. "The Employment Sector of a Regional Policy Simulation Model," The Review of Economics and Statistics, MIT Press, vol. 62(1), pages 63-73, February.
    5. Stanislaw Czamanski & Emil E. Malizia, 1969. "Applicability And Limitations In The Use Of National Input‐Output Tables For Regional Studies," Papers in Regional Science, Wiley Blackwell, vol. 23(1), pages 65-78, January.
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    Cited by:

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