A New Practical Method for Estimation of Input-Output Tables

Fujimori, S. ORCID: https://orcid.org/0000-0001-7897-1796 (2007). A New Practical Method for Estimation of Input-Output Tables. IIASA Interim Report. IIASA, Laxenburg, Austria: IR-07-015

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Abstract

This paper describes a new and effective method for the estimation of input-output tables. The method is based on the cross-entropy method (Kullback, 1959). The cross-entropy method has been applied for the estimation of inputoutput tables (see e.g., Robinson et al., 2001; Golan et al., 1994). However, considering this, the known approaches were not effective to the problem. Therefore, we had to solve some methodological problems which in turn led to substantial improvements of the cross-entropy method for actual applications.

In the future, we are going to estimate a few decades input-output tables. Thus, we applied the developed method to estimate input-output tables of Japan for twenty year. The results reported in this paper show that the proposed method not only provides correct results but is much more efficient, and therefore can be effectively used for estimating material flows for many countries and for the period of several decades.

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