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The main objective of this paper is to revisit the Euro method in a critical and constructive way.Wehave analysed some arguments against the Euro method published recently in the literature as well as some other relevant aspects of the SUT-Euro and SUT-RAS methods not covered before. Although not being the Euro method perfect, we believe that there is still space for the use of the Euro method in updating/regionalizing Supply and Use tables.

There are increasing numbers of published articles in the field of input–output analysis and modelling that use the GTAP input–output database; particularly, in relation to the estimation of carbon, energy and water footprints and the analysis of global value chains and international trade. The policy relevance of those topics is also increasing, thus calling for consistently linking these databases with official statistics. Although, so far, GTAP has been using their own classification and reconciliation methods, this paper develops a new conversion method for the EU that guarantees that the EU-GTAP database respects the new statistical standards and Eurostat official statistics. We recommend for future updates, a shift of the current GTAP classification of industries to the new official standard classifications to which countries are progressively moving to. Otherwise, the lack of matching official data would jeopardize the usefulness of such database. This method can be extended to other similar input–output databases with different classification schemes from the original input data sources.

Every change in the product and/or industry classifications and/or methodology of supply, use and input–output tables makes any medium- to long-term policy analysis impossible unless appropriate co...

Over the past two decades, EU employment supported by extra‐EU exports of goods and services has increased markedly, with a shift towards jobs supported by services exported as part of manufactured goods. The authors seek further insight into this trend through the full decomposition of trade flows using a multi‐regional input–output model and the World Input–Output Database for 40 countries and 35 industries over the period 1995–2011. Their findings call for reflection by policy‐makers regarding the four traditional modes of service supply under the General Agreement on Trade in Services with a view to adequately capturing this new reality in global trade.

En las dos ultimas decadas, el empleo sostenido por las exportaciones extracomunitarias de bienes y servicios ha crecido considerablemente en la UE, con un giro hacia el empleo sostenido por los servicios exportados como parte de productos manufacturados. Para estudiar este fenomeno, los autores descomponen totalmente los flujos comerciales de 40 paises y 35 sectores durante el periodo 1995-2011 utilizando un modelo input-output multirregional y la base de datos mundial input-output (WIOD). Los resultados indican que los cuatro modos de suministro de servicios tradicionales del Acuerdo General sobre el Comercio de Servicios deberian revisarse para adecuarlos a la nueva realidad del comercio mundial.

We have introduced in this paper new variants of two methods for projecting Supply and Use Tables that are based on a distance minimisation approach (SUT-RAS) and the Leontief model (SUT-EURO). We ...

We present a multidimensional generalization of the GRAS method (nD-GRAS) for the estimation of multiple matrices in an integrated framework. The potential applications of this method in regional and multi-regional input–output analyses based on national/regional accounts frameworks are many. We provide two real applications, a 3D-GRAS that estimates a use table at basic prices jointly with valuation matrices for Denmark; and a 4D-GRAS for estimating intercountry input–output tables with OECD data. We show that higher dimensional GRAS methods provide more consistent and accurate estimates than those with lower number of dimensions. We provide the analytical closed-form solution and the RAS-like algorithm for an easy operationalization.

In applications, it is often necessary to link heavily aggregated macroeconomic datasets adhering to different statistical classifications. We propose a simple data reclassification procedure for t...

Input–Output modellers are often faced with the task of estimating missing Use tables at basic prices and also valuation matrices of the individual countries. This paper examines a selection of estimation methods applied to the European context where the analysts are not in possession of superior data. The estimation methods are restricted to the use of automated methods that would require more than just the row and column sums of the tables (as in projections) but less than a combination of various conflicting information (as in compilation). The results are assessed against the official Supply, Use and Input–Output tables of Belgium, Germany, Italy, Netherlands, Finland, Austria and Slovakia by using matrix difference metrics. The main conclusion is that using the structures of previous years usually performs better than any other approach.

In this paper a multiregional input–output model is proposed and used to estimate time series trends for water use, water footprint and water trade balance. By using data provided by the World Input–Output Database, the water used in production, consumption and trade is quantified for 41 world regions between 1995 and 2008. Results show that global water use grew by 37.3%, with China, India and Brazil contributing most to that increase. China and India, together with the EU-27, were also responsible for the largest water footprint variations. In terms of trade, the EU-27 was the largest water importer and China and India the main water exporters. The results provided in this paper offer an overview of the main countries’ responsibility for the use of water resources. They provide a good starting point for international debates and policies on sustainable water use.

This paper develops a method to consolidate national supply–use tables (SUTs) into a single supra-regional SUT. The method deals with mirror trade statistics problems, such as the different valuation of imports and exports, and it corrects for double-counting re-exports. The method is tested by means of a decomposition of value added and CO2 emissions embodied in EU27 exports to third countries. When the national SUTs for the period 2000–2007 are used, neglecting intra-European Union spillover and feedback effects results in an underestimation of the embodied value added of 12–15%. Not consolidating the national tables properly leads to a further underestimation of 11–16%. With these underestimations removed, EU27 foreign exports still only explain around 11% of EU27 Gross Domestic Product, whereas they explain 17% of the EU27 CO2 emissions. Hence, the income benefits of these exports are, in relative terms, considerably smaller than their CO2 emission cost.

Testing the relationship between economic performance and energy consumption is of utmost importance in nearly all countries. Taking the European Union as scope, this paper analyses the impacts of energy efficiency legislation on a selection of household appliances. In particular, it analyses the employment and value added impacts of the stricter energy efficiency requirements for dishwashers, washing machines, and washer dryers. To do so, this paper combines a bottom-up stock model with a macro-econometric dynamic general equilibrium model (FIDELIO) to quantify the direct and indirect value added and employment impacts in the European Union. The analysis shows that stricter energy efficiency requirements on household dishwashers, washing machines, and washer dryers have a net negative macroeconomic impact on value added (roughly 0.01 % of the total European Union value added) and a slightly net positive impact on employment. In fact, the regulations cause a shift in the composition of the household consumption basket that seems to favor labor-intensive industries.

The Supply-Use Based Econometric (SUBE) approach was proposed to calculate stochastic input–output multipliers from rectangular supply-use tables under the product technology assumption. However, the resulting total use of direct requirements stimulated by final demand (be they carbon emissions, labor, etc.) may differ from the actual total use of direct requirements. To solve this problem, we propose in this paper a two-stage SUBE approach, which takes as prior the initially estimated SUBE multipliers and obtains a posterior set of two-stage SUBE multipliers by constrained least squares minimization. We illustrate the results with an empirical application for carbon emissions in the Portuguese economy in 2005.

This article quantifies for the first time the European employment effects of extra-EU exports and the correct number of jobs generated through the intra-EU trade (single market) associated with the production of such exports. The literature has neglected very often the latter effects mainly due to the lack of an appropriate methodology and data. The main results of the article show that, between 2000 and 2007, an increasing number of European jobs were dependent on extra-EU exports and on the strengthening of the trade linkages across the internal market. During the period considered, the EU employment supported by extra-EU exports grew from 22 to 25 million jobs, out of which 9 million jobs (in 2007) were due to spillover and feedback effects associated with the single market. Between 2000 and 2007 the EU also became a more vertically integrated economy, and reduced the labour intensity of the extra-EU exports.

This paper formalises the so-called Supply-Use Based Econometric (SUBE) approach that allows for the introduction of econometric analysis in the calculation of backward input–output multipliers of the Leontief-type quantity model, using rectangular supply and use tables. The SUBE approach does not require any kind of inverse matrix and incorporates the traditional approach (with square supply-use tables) as a particular case. The empirical analysis shows that the SUBE carbon dioxide multipliers for the EU27 are considerably lower than those obtained by the traditional Leontief inverse. In an application of the SUBE approach, the European economy appears to emit about 10% less carbon dioxide than in a situation in which it would not import any intermediate inputs from outside the EU27.

Food consumption causes, together with mobility, shelter and the use of electrical products, most life cycle impacts of consumption. Meat and dairy are among the highest contributors to environmental impacts from food consumption. A healthier diet might have less environmental impacts. Using the E3IOT environmentally extended input output database developed in an EU study on Environmental Impacts of Products (EIPRO), this paper estimates the difference in impacts between the European status quo and three simulated diet baskets, i.e. a pattern according to universal dietary recommendations, the same pattern with reduced meat consumption, and a 'Mediterranean' pattern with reduced meat consumption. Production technologies, protein and energy intake were kept constant. Though this implies just moderate dietary shifts, impact reductions of up to 8% were possible in reduced meat scenarios. The slightly changed food costs do not lead to significant first order rebound effects. Second order rebounds were estimated by applying the CAPRI partial equilibrium model. This analysis showed that European meat production sector will most likely respond by higher exports to compensate for losses on the domestic meat market. Higher impact reductions probably would need more drastic diet changes. © 2011 Elsevier B.V.

In this paper we argue that an accurate representation of household consumption behaviour is central to the analysis and comparison of policy interventions addressing sustainable consumption. Therefore, we propose to extend an input–output model with a specific household consumption model, at the core of which is a system of equations explaining the allocation of the households' overall expenditure across different purposes, such as buying food, the consumption of fuel for heating or electricity for cooling, education of children or travelling in terms of total expenditure and relative prices. This paper shows that the integration of a specific module for household consumption in a standard input–output model is an improvement for the analysis of the policies aimed at altering consumer behaviour.

Climate change research is currently a topic of great interest for economic researchers. In particular, environmental input–output analysis increasingly plays an important role in measuring the economic and environmental effects of sustainable development policies in Europe. Other approaches also exist, such as econometric modelling, in which impacts are quantified on statistical grounds and with certain desirable properties (efficient estimates, confidence intervals, hypothesis testing, etc.) that are not found in the input–output approach. Consequently, this paper merges the two approaches to address the calculation of unbiased and consistent carbon dioxide emission multipliers for Denmark and their respective confidence intervals. The use of the supply and use system instead of the symmetric input–output table also presents the opportunity to avoid the common problems associated with the construction of technical coefficients (technology assumptions, negatives, etc.). Moreover, a new policy-relevant application of these multipliers is introduced: the quantification of the performance of the carbon dioxide emission reductions carried out by industries via external trading.

Kop Jansen and ten Raa’s (1990) characterization of product-by-product input–output tables was adopted by the United Nations (1993). Recent OECD and several EU funded projects, however, used industry-by-industry tables, which raises comparable issues concerning their construction. We show how their two main construction models are instances of the transfer principle, with alternative assumptions on the variation of input–output coefficients across product markets. We augment the theory by formulating desirable properties for industry tables and investigate the so-called fixed product and fixed industry sales structure models, which are used by statistical institutes. The fixed industry sales structure model is shown to be superior from an axiomatic point of view.

The European Commission is currently establishing an Environmentally Extended Input–Output (EE-IO) Database for the EU27 developed by the Joint Research Centre at the Institute for Prospective Technological Studies (IPTS). This project attempts to generate an analytical dataset comprising all EU countries and yearly time series for the period 1995–2005. Since, for the time being, IO and environmental accounts data are only available with significant gaps part of the dataset will require estimates based on best available proxy data and reasonable assumptions. This paper is focused on the IO database shaped around Eurostat supply and use tables and symmetric IO tables consistent with the NACE classification. The paper describes the procedure by which the latest preliminary results have been obtained for an aggregate EU27 symmetric input–output table for the year 2000.

Technical coefficients are usually constructed from commodity or industry technology models. Although these models are considered as competing, there is an encompassing framework that admits a clear comparison.

Following the debate on the implications of international trade for global climate policy, this paper introduces the topic of the economic benefits from trade obtained by exporting countries in relation to the emissions generated in the production of exports. In 2008, 24% of global greenhouse gas (GHG) emissions and 20% of the employment around the world were linked to international trade. China “exported” 30% of emissions and hosted 37.5% of the jobs generated by trade worldwide. The European Union and the United States of America were the destination of 25% and 18.4% of the GHG emissions embodied in trade. The imports of these two regions contributed to the creation of 45% of the employment generated by international trade. This paper proposes the idea of including trade issues in international climate negotiations, taking into account not only the environmental burden generated by developed countries when displacing emissions to developing countries through their imports, but also the economic benefits of developing countries producing the goods exported to developed countries.

This is a submitted manuscript of an article published by Taylor & Francis in Economic Systems Research on 04 Aug 2014, available online: https://www.tandfonline.com/doi/10.1080/09535314.2014.939949 We explore two different worldwide multi-regional input–output (MRIO) databases (Global Trade Analysis Project-MRIO and World Input–Output Database) for the calculation of the global carbon footprint (CF) of nations. We start our analysis with a description of the main characteristics of the databases and then make a comparison between their main components. Then, we calculate the CF with both databases and identify (from a global perspective) the most relevant factors underlying their differences using structural decomposition analysis. On average, certain parts of both databases (e.g. intermediate uses and final demand) can be said to be similar for around 75% to 80%, with only a few elements in each part mainly driving the major differences. The divergences in the datasets of four countries explain almost 50% of the differences in the CF (the USA, China, Russia and India). Industry-wise, 50% of the differences can be explained by the divergences in electricity, refining and inland transport industries.

Many economic models (e.g., computable general equilibrium models, econometric input–output models) revolve around a matrix of technical coefficients. However, these matrices can be estimated only once every 5 years as long as they are calculated from input–output tables and these are only published on a 5-year basis. Alternatively, use and make (or supply) tables are being regularly published on a yearly basis. However, they need to be converted into input–output tables as a previous step to form the matrix of technical coefficients. In doing so, this paper aims to shed light on the construction process of input–output tables and to guide economic modelers in making a decision on the way to make such conversion and how to deal with the subsequent problems, particularly with negative technical coefficients.

Product input–output (IO) tables are mainly constructed on the basis of product and/or industry technology assumptions. The choice is not trivial and deserves empirical analysis using input and output data at the level of establishments. This paper offers input–output compilers econometric tests to facilitate the construction of tailored hybrid technology-based product IO tables. We provide weighted likelihood ratios of the product and industry technology assumptions. Although the proposed econometric tests are aimed to be used ex ante, we construct four variants of hybrid technology-based product IO tables using establishment data from Andalusia (Spain) and contrast them to the official product IO table and the pure product and industry technology-based tables. Our econometric tests are not valid for industry IO tables., JRC.J.5-Sustainable Production and Consumption

The literature on stochastic input-output analysis has paid considerable attention to the bias in the Leontief inverse. This paper extends previous studies by assuming supply and use tables (rather than input-output tables or input coefficients matrices) to be stochastic. This is a natural starting point because supply and use tables have become the basic data sources for input-output applications. In a Monte Carlo simulation experiment, a given supply and use table is randomized in two different ways and the effects are determined for eight different multiplier matrices. The analysis is carried out for Spain, Italy, the Netherlands, Germany, and Finland, using their supply and use tables for 2006. The findings indicate that in general biases are statistically significant but negligibly small. This corroborates earlier findings obtained for stochastic input-output tables., JRC.J.5-Sustainable Production and Consumption

Final consumption of food products figures amongst the strongest contributors to negative environmental impacts in Europe, with the production of beef and pork at agricultural level being the main responsible part of the food supply chain. This article analyses quantitatively the environmental impact of changing European diets. The environmental impact of European consumption is determined with an environmental extended input-output analysis, supplemented by a partial equilibrium model reflecting changes of the agricultural sector to modified diets. It results that agricultural production does not decrease significantly in reaction to reduced food consumption, due to a changed trade balance and substitution effects., JRC.DDG.J.5-Agriculture and Life Sciences in the Economy

This report presents the results and conclusions of a research carried out by the JRC/IPTS analysing two demand-side measures that can help improving the environmental performance of cars: The first instrument, the feebate system, is a way to differentiate the registration tax according to the CO2 emissions from cars. The second instrument, the scrappage policy is intended to encourage the owners of old cars to scrap their car earlier. The potential and consequences of technical options to reduce car weight are also analysed. The report builds a comprehensive assessment of these policy options at EU level, covering all major environmental life cycle impacts and the different economic impacts. The report is built upon IPTS research work, supported with a study subcontracted to a research consortium led by Transport&Mobility Leuven (TML) and involving Öko-Institut and ISI-Fraunhofer.

This paper presents the strategy for a large EU-funded Integrated Project: EXIOPOL ("A New Environmental Accounting Framework Using Externality Data and Input-Output Tools for Policy Analysis"), with special attention for its part in environmentally extended (EE) input-output (IO) analysis. The project has three principal objectives:(a) to synthesize and further develop estimates of the external costs of key environmental impacts for Europe;(b) to develop an EE IO framework for the EU-27 in a global context, including as many of these estimates as possible, to allow for the estimation of environmental impacts (expressed as LCA themes, material requirement indicators, ecological footprints or external costs) of the activities of different economic sectors, final consumption activities and resource consumption;(c) to apply the results of the work to external costs and EE I-O for illustrative policy questions. (C) 2008 Elsevier B.V. All rights reserved.

RESUMEN La estimación del comercio interregional dentro de una economía se sitúa generalmente dentro del contexto de los modelos input-output multirregionales. Existen métodos que realizan estimaciones directas basadas en datos reales utilizando información sobre flujos comerciales internacionales, flujos de transporte y/o encuestas dirigidas a productores y consumidores. Junto a ellos, existen otros métodos que proporcionan estimaciones indirectas. No obstante, la ausencia de información precisa al respecto es apreciable en este campo. Centrándose en el caso de la Comunidad Autónoma de Andalucía, el presente trabajo aporta como principal contribución el uso de modelos econométricos de elección discreta para completar la información que sobre el comercio interregional se deriva de las encuestas a nivel de establecimientos. En particular, la información proporcionada acerca de los orígenes y destinos de los productos por parte de los comerciantes mayoristas e intermediarios de comercio en Andalucía para 1995 sirve de base para el análisis. El resultado final muestra cómo los intercambios comerciales interregionales entre Andalucía y el resto de España giran en torno a tres variables fundamentales: la localización geográfica de los establecimientos mayoristas, el empleo y el margen comercial de cada producto. ABSTRACT Interregional trade within an economy is generally estimated on an interregional or multirregional input-output context. There are methods that estimate directly trade flows using actual databases of international flows, transport flows and/or surveys to producers and consumers. There are other methods that provide indirect estimations as well. However, accurate information on this issue is highly scarce. Focusing on Andalusia, this paper provides as a new contribution the way to use discrete choice econometric models in order to fill the missing data derived from trade surveys. In particular, the analysis is carried out with survey-based information on interregional wholesale trade flows in 1995 for the Andalusian economy. Final results show that interregional trade flows between Andalusia and the rest of Spain revolve around three crucial variables: the geographical location of wholesalers’ establishments, employment and individual trade margins.

Perhaps, one of the most relevant issues in constructing regional input-output tables is the estimation of interregional trade flows. Hence, the Regional Statistical Office of Andalusia (Spain) is promoting new research on survey-based estimates of trade flows between the own region and the rest of Spain. Especially, survey approach has been seen to result more reliable outcomes (Eding & Nijmeijer, 1998) than non-survey constructs. This paper will focus on survey design features, sample methods, treatment of sampling and non-sampling errors and others aspects concerning data collection and processing in the case of Andalusia (Spain).

RESUMEN Existen aportaciones recientes en las que el análisis input-output clásico se viene desarrollando con matrices de origen y destino y no con matrices de coeficientes técnicos. Sin embargo, esto no siempre es posible. Con el objetivo de construir dichas matrices de coeficientes técnicos, este trabajo va a permitir identificar aquellos productos de la economía andaluza susceptibles de ser tratados con una tecnología diferente a la del producto. La descripción detallada de las estructuras de consumos intermedios proporcionará elementos de juicio para detectar la coexistencia de tecnologías, problemas de agregación en las clasificaciones de productos utilizadas y/o posibles errores de medida. ABSTRACT Recent contributions avoid technical coefficients to make standard input-output analysis on the basis of use and make matrices. However, some economic issues must be studied through technical coefficients so, the construction of make-use based technical coefficients matrices becomes crucial. With the purpose of constructing a non-negative technical coefficients matrix, this paper identifies the candidate industries in the Andalusian economy for a treatment of secondary products by other means than the commodity technology model. A description of their inputs structures enables the detection and correction of errors in the compilation of use and make tables, and helps in tackling classification and aggregation problems and identifying of secondary products that fulfill the industry technology model.

Entrepreneurship is becoming a very relevant instrument to promote economic growth and development in different regional and national economies. However, social scientists have not still agreed on the determinants of the decision to become an entrepreneur. Therefore, there is some concern that policies may not be sufficiently efficient in achieving this objective. From a psychological point of view, the intention to become an entrepreneur has been described as the single best predictor of actual behaviour (Ajzen, 1991; Kolvereid, 1996). Hence, some studies have started to analyse the entrepreneurial intention and its determinants (Krueger et al., 2000) but however, methodologies and research instruments used so far differ widely. Then, the availability of a validated instrument to measure abilities, attitudes and intentions towards entrepreneurship could be of much help. In this paper, we use an Entrepreneurial Intention Questionnaire (EIQ), which has been recently validated, to measure entrepreneurial intentions in a sample of students from different Spanish universities. After a brief description of the characteristics and psychometric properties of the EIQ, most important results are discussed. In particular, we pay attention to the influence of different personal and family variables on the entrepreneurial intention level. These variables could be considered as belonging to the institutional environment of each territory. Differences in institutions -in a broad sense- may be a very relevant factor to explain divergent entrepreneurial activity levels. Results show how these external variables affect intention and, as a result actual entrepreneurial behaviour.

In the literature, the construction of technical coefficients is linked to flow data (use and make matrices), but stochastics are imposed on the coefficients when multipliers are calculated, by means of the Leontief inverse. Due the nonlinearity of this operation, the multiplier estimates are biased (it is generally argued that the Leontief inverse underestimates input-output multipliers). By going back to the flow data, this paper provides unbiased and consistent employment and output multipliers estimates for the Andalusian economy. Rectangular use and make matrices are accommodated and technical coefficients, the Leontief inverse, and associated problems (such as negative coefficients) are circumvented.

Kop Jansen and ten Raa (1990) established a purely theoretical solution to the problem of selecting a model for the construction of coefficients on the basis of make and use tables. In an axiomatic context, they singled out the so-called commodity technology model as the best one according to some desirable properties. The aim of this paper is to delineate the restrictions on the relevant data sets that ensure fulfillment of the desirable properties by other models used by statistical offices.