THEORY AND PRACTICE OF UPDATING REGIONAL VERSUS INTERREGIONAL INTERINDUSTRY TABLES

What is it about?

This paper shows how information on changes in the structure of national interindustry and final demand deliveries may be used to update interregional input‐output tables, whereas such information cannot be used adequately to update single‐region tables. Empirical tests on three Dutch interregional tables are performed. We assess the impact of aggregation and the effects of neglecting information on national cells and we compare updating the intraregional parts of the tables separately to updating them as part of the interregional table to which they belong. We conclude that the higher initial cost of constructing interregional tables partly pays off in the form of lower updating cost and greater reliability of the updated interregional tables as compared with single‐region tables.

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