Some Tentative Conclusions
It appears that although national input-output tables cannot be used for purposes of regional studies without considerable adjustments, acceptable results can be achieved by the methods tried on the Washington State table.
In order to obtain acceptable results it seems important (1) to exclude the tertiary sectors through aggregation, and (2) to use field surveys in order to obtain input-output coefficients for (a) primary industries and (b) industries in which the regional economy is specialized. Price adjustments and adjustments for domestic imports do not seem to add anything to the quality of results. Neither do successive iterations after the first one.
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References
T. Y. Shen, “An Input-Output Table with Regional Weights,”Papers and Proceedings of the Regional Science Association, VI (1960), pp. 113–119.
P. J. Bourque, E. J. Chambers, J. S. Chiu, F. L. Denman, B. Dowdle, G. G. Gordon, M. Thomas, C. M. Tiebout and E. E. Weeks,The Washington Interindustry Study for 1963, Reprint No. 10 (Seattle: University of Washington, Center for Urban and Regional Studies, 1966).
Our model is an adaptation of a model presented by Stone and Brown and used by them in order to adjust for changes in national input-output tables over time. See Richard Stone and Alan Brown, “Behavioral and Technical Change in Economic Models,” in E.A.G. Robinson, ed.,Problems in Economic Development (New York: The Macmillan Company 1965), pp. 434–436. Also see Richard Stone,Mathematics in the Social Sciences and Other Essays (Cambridge: The M.I.T. Press, 1966), pp. 243–244.
The information theory approach used was largely developed and extensively used by Theil. See H. Theilet al., Applied Economic Forecasting (Chicago: Rand McNally & Company, 1966), pp. 256–282. C. B. Tilanus and H. Theil,The Information Approach to the Evaluation of Input-Output Forecasts (Netherlands School of Economics: Econometric Institute, 1964).
Office of Business Economics, United States Department of Commerce,Survey of Current Business XLV, No. 9 (September, 1965), pp. 33–49.
Office of Business Economics, United States Department of Commerce,Survey of Current Business, XLVI, No. 4 (April, 1966), pp. 14–17.
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Financial help for this research was provided by a Cornell Faculty Research Grant to the senior author and is acknowledged. The authors are deeply indebted to the late Professor Charles M. Tiebout, of the University of Washington, who provided the Washington State Input-Output Table used for the case study and who also assisted with helpful comments. Mrs. Katherine Drew and Mrs. Tessa Osborne gave programming assistance, and Barry Lawson acted as research assistant during part of the preparation.
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Czamanski, S. Applicability and limitations in the use of national input-output tables for regional studies. Papers of the Regional Science Association 23, 65–77 (1969). https://doi.org/10.1007/BF01941873
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DOI: https://doi.org/10.1007/BF01941873