A note on the estimation of interregional input-output coefficients

Abstract

The interregional input-output model is a rtieful loo1 for analysis of multiregional systems. The main problem in emI, Tical applications of the model is to find reasonable estimates of the interregional input--output coefficients. In the ‘ideal’ model presented by Isard (1951) one must have information on flows by industry and region of origin and destination to be able to estimate the interregional input-output coefficients. As such information very seldom is available, a number of simplified variants have been proposed. See the survey by Riefler (1973). In an article in this Journal Andersson (1975) suggested a method for estimation of interregional input-output coeficients that can be used in situations where data are scarce. The approach proposed is an example of a method where interregional input-output coefficients are determined through disaggregation by region and sector of a national input-output table. When proposing simplified procedures for estimation of interregional input-output coefficients one can impose different sets of restrictions or consistency requirements. Andersson [1975, p. 439, eq. (17)] puts only a very weak restriction on his estimates, namely