Comparing Multipliers from Survey and Non-Survey Based IO Models

Abstract

This article compares ninety different multiplier estimates derived from non-survey Input–Output (IO) tables with those derived from a novel survey approach. It finds that, on average, the estimates are surprisingly similar, indicating that the survey-based approach may be a cost-effective technique for generating multiplier estimates. Where differences do exist, it finds that differences in production technologies are a more important source of differences in multipliers than are differences in import propensities. This suggests that those who regionalize national IO tables may not just need to allow for differences in the propensity of sectors to import; they may also need to allow for differences in production technologies—particularly if regionalizing IO tables that have been developed in relatively urban areas for use in rural or remote locales such as those considered here.