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Make and Use Approaches to Regional and Interregional Accounts and Models

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  • Bjarne Madsen
  • Chris Jensen-Butler

Abstract

Institutional, or sector-by-sector input-output tables have traditionally been used in regional and interregional modelling. This paper examines the origins of this tradition and argues instead, both theoretically and empirically, for the integration of make and use submodels within models of production, demand and interregional trade, outlining the manner in which they can be integrated. Further, it is argued that structural rather than reduced-form models represent a sounder theoretical base. Finally, a Danish interregional model (LINE) based on a social accounting matrix framework that employs these principles is presented. The paper also deals with the issue of data construction at the regional and interregional levels, based on the make and use approach. It is argued that when data are constructed at a low level of sectoral and spatial aggregation under accounting consistency constraints, data quality and validity are high.

Suggested Citation

  • Bjarne Madsen & Chris Jensen-Butler, 1999. "Make and Use Approaches to Regional and Interregional Accounts and Models," Economic Systems Research, Taylor & Francis Journals, vol. 11(3), pages 277-300.
    • Handle: RePEc:taf:ecsysr:v:11:y:1999:i:3:p:277-300
    DOI: 10.1080/09535319900000019
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    Citations

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    Cited by:

    1. Aramendia, Emmanuel & Heun, Matthew K. & Brockway, Paul E. & Taylor, Peter G., 2022. "Developing a Multi-Regional Physical Supply Use Table framework to improve the accuracy and reliability of energy analysis," Applied Energy, Elsevier, vol. 310(C).
    2. 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.
    3. 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.
    4. Banerjee, Onil & Cicowiez, Martin & Gachot, Sébastien, 2015. "A quantitative framework for assessing public investment in tourism – An application to Haiti," Tourism Management, Elsevier, vol. 51(C), pages 157-173.
    5. Ana Sargento & Pedro Nogueira Ramos & Geoffrey Hewings, 2011. "Input-Output Modelling Based on Total-Use Rectangular Tables: Is This a Better Way?," Notas Económicas, Faculty of Economics, University of Coimbra, issue 34, pages 08-34, December.
    6. Rocco, Matteo V. & Guevara, Zeus & Heun, Matthew Kuperus, 2020. "Assessing energy and economic impacts of large-scale policy shocks based on Input-Output analysis: Application to Brexit," Applied Energy, Elsevier, vol. 274(C).
    7. Bjarne Madsen & Chris Jensen-Butler, 2005. "Spatial accounting methods and the construction of spatial Social Accounting Matrices," ERSA conference papers ersa05p328, European Regional Science Association.
    8. Cong, Rong-Gang & Stefaniak, Irena & Madsen, Bjarne & Dalgaard, Tommy & Jensen, Jørgen Dejgård & Nainggolan, Doan & Termansen, Mette, 2017. "Where to implement local biotech innovations? A framework for multi-scale socio-economic and environmental impact assessment of Green Bio-Refineries," Land Use Policy, Elsevier, vol. 68(C), pages 141-151.
    9. Chris Jensen-Butler & Bjarne Madsen, 2005. "Decomposition Analysis: An Extended Theoretical Foundation and its Application to the Study of Regional Income Growth in Denmark," Environment and Planning A, , vol. 37(12), pages 2189-2208, December.
    10. Kambale Kavese & Andrew Phiri, 2019. "Microsimulations of a dynamic SUT economy-wide Leontief-based model for the South African economy," Working Papers 1910, Department of Economics, Nelson Mandela University, revised Nov 2019.
    11. Manfred Lenzen & Roberto Schaeffer, 2004. "Environmental and Social Accounting for Brazil," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 27(2), pages 201-226, February.
    12. Mattia Cai, 2021. "Doubly constrained gravity models for interregional trade estimation," Papers in Regional Science, Wiley Blackwell, vol. 100(2), pages 455-474, April.
    13. Ali Jalili, 2005. "Impacts of Aggregation on Relative Performances of Nonsurvey Updating Techniques And Intertemporal Stability of Input–Output Coefficients," Economic Change and Restructuring, Springer, vol. 38(2), pages 147-165, June.
    14. Gulay Gunlu k-Senesen & Umit Senesen, 2001. "Reconsidering Import Dependency in Turkey: The Breakdown of Sectoral Demands with Respect to Suppliers," Economic Systems Research, Taylor & Francis Journals, vol. 13(4), pages 417-428.
    15. Schwärzler, Marion Cornelia & Kronenberg, Tobias, 2017. "Methodology of the Multiregional Health Account for Germany - An Iterative Algorithm-Based Multiregionalization Approach of Supply and Use Tables with Emphasis on Health," MPRA Paper 80712, University Library of Munich, Germany.
    16. Madsen, Bjarne & Jensen-Butler, Chris, 2004. "Theoretical and operational issues in sub-regional economic modelling, illustrated through the development and application of the LINE model," Economic Modelling, Elsevier, vol. 21(3), pages 471-508, May.
    17. Yoshifumi Ishikawa & Toshihiko Miyagi, 2004. "The Construction of a 47-Region Inter-regional Input-Output Table, and Inter-regional Interdependence Analysis at Prefecture Level in Japan," ERSA conference papers ersa04p432, European Regional Science Association.

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