Beyond intermediates: the role of consumption and commuting in the construction of local input-output tables

Hermannsson, K. (2016) Beyond intermediates: the role of consumption and commuting in the construction of local input-output tables. Spatial Economic Analysis, 11(3), pp. 315-339. (doi: 10.1080/17421772.2016.1177194)

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Abstract

Estimating intermediate trade using conventional non-survey methods produces biased results. This problem has led to a methodological recommendation that emphasises the accurate estimation of intermediate trade flows. This paper argues for a qualification of the consensus view: when simulating input-output (IO) tables, analysts need also to consider spill-over effects driven by wage and consumption flows. In particular, for metropolitan economies, capturing wage and consumption flows is essential to obtain accurate Type II multipliers. This is demonstrated by constructing an interregional IO table, which captures the interdependence between a city and its commuter belt, nested within the wider regional economy.

Item Type:Articles
Keywords:Input-output, location quotients, commuting, consumption.
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Hermannsson, Dr Kristinn
Authors: Hermannsson, K.
Subjects:H Social Sciences > HB Economic Theory
College/School:College of Social Sciences > School of Education
College of Social Sciences > School of Education > Educational Leadership & Policy
Journal Name:Spatial Economic Analysis
Publisher:Routledge
ISSN:1742-1772
ISSN (Online):1742-1780
Published Online:01 June 2016
Copyright Holders:Copyright © 2016 Regional Studies Association
First Published:First published in Spatial Economic Analysis 11(3): 315-339
Publisher Policy:Reproduced in accordance with the copyright policy of the publisher

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