Spotting Error Patterns in Input–Output Projections Using Location Quotients

Xesús Pereira-López, Napoleón Guillermo Sánchez-Chóez and Melchor Fernandez
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Xesús Pereira-López: Department of Quantitative Economics, University of Santiago de Compostela, 27002 Santiago de Compostela, Spain
Napoleón Guillermo Sánchez-Chóez: Institute of Development Studies of Galicia (IDEGA), University of Santiago de Compostela, 15706 Santiago de Compostela, Spain

Mathematics, 2022, vol. 10, issue 9, 1-19

Abstract: The Sustainable Development Goals (SDGs) stated by the United Nations (UN) constitute a universal agenda committed to human rights. In this context, mathematics can perform a fundamental role. Exploring possible contributions to these goals could be considered an interesting approach. Input–output (IO) tables provide detailed information for socio-economic quantifications. Thus, they allow for more precise policy decision-making and application in the SDG strategy. However, the smaller the subnational unit to be considered, the less statistical information that is available. Survey-based IO tables with large product/industry disaggregation are seldom published. Therefore, non-survey methods to estimate subnational IO tables based on the national are needed. These methodologies should yield optimal results. In the present investigation, different formulations for these non-survey regionalization methods are analyzed. The work focuses on the methodologies based on location quotients ( LQ ). As a result, some error patterns associated with current formulations present in literature are described. A slight refinement of these methodologies is proposed in order to improve the estimation’s accuracy.

Keywords: regional input–output tables; location quotients; non-survey; 2D- LQ; AFLQ (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2022
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