Data Use and the Simulation of Regional Input-Output Matrices

Abstract

There is a growing body of evidence which suggests that, used in conjunction with a suitable estimation method, the incorporation of good quality exogenous data can enhance the accuracy of simulated or updated regional input—output matrices. However, there has been little attempt to measure explicitly the accuracy of simulation results in relation to the data used in their estimation. Within the context of programming estimation procedure, comparable measures of the ‘quantity’ of exogenous data and the accuracy of simulation are developed in this paper. Subsequently, this framework is demonstrated using Scottish and Washington input—output tables.