CONSTRUCTION OF MULTI-REGIONAL INPUT--OUTPUT TABLES USING THE CHARM METHOD
Johannes Többen and
Tobias Kronenberg
Economic Systems Research, 2015, vol. 27, issue 4, 487-507
Abstract:
Subnational multi-regional input--output tables (IOT) are important tools for studying interregional socio-economic and/or environmental interrelations that help to address a wide range of current societal, ecological and economic challenges. However, the lack of subnational input--output data is a major obstacle which leads to a wide use of non-survey methods. Like other non-survey methods, the cross-hauling adjusted regionalization method (CHARM) was originally developed for the construction of single-regional IOT. In this paper, we extend CHARM to the case of bi- and multi-regional IOT. We find that the original CHARM formula has two limitations that are also of great importance for the single-regional case: First, cross-hauling in interregional trade is implicitly set to zero and, second, accounting balances may be violated owing to structural differences between the regional and national economies. We present a modified formula addressing these issues and examine its performance in terms of a case study.
Date: 2015
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DOI: 10.1080/09535314.2015.1091765
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