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

Andrzej Torój ()

No 2018-037, Working Papers from Warsaw School of Economics, Collegium of Economic Analysis

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.

Keywords: input-output modelling; GRIT(generation of regional input-output tables); spatial econometrics; SDM (spatial Durbin model); regional EIA (economic impact assessment) (search for similar items in EconPapers)
JEL-codes: C31 C67 R12 R15 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eff, nep-geo, nep-knm and nep-ure
Date: 2018-05
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