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Generation of regional input-output tables: a spatial econometric approach with illustrative simulations for France,Germany and Poland

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  • Andrzej Toroj

Abstract

This paper investigates the construction of multisector-multiregion input-output tables by using spatial econometric methods. I demonstrate that, under reasonable assumptions, the problem of finding Leontief's technical coeffecients can be formulated as a modified multi-equation spatial Durbin model and the missing parameters can be estimated via maximum likelihood. The resulting coefficients are computed as a function of country-wide coeffiecients, as well as distance and regional-sectorial data on value added. The statistical performance of the model is scrutinized and the method is illustrated with simulations of regional (NUTS-3 level) economic impact assessment - for generic companies located in Southern France, Germany and Poland.

Suggested Citation

  • Andrzej Toroj, 2018. "Generation of regional input-output tables: a spatial econometric approach with illustrative simulations for France,Germany and Poland," KAE Working Papers 2018-037, Warsaw School of Economics, Collegium of Economic Analysis.
    • Handle: RePEc:sgh:kaewps:2018037
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    References listed on IDEAS

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    More about this item

    Keywords

    input-output modelling; GRIT(generation of regional input-output tables); spatial econometrics; SDM (spatial Durbin model); regional EIA (economic impact assessment);
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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