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Construction Of Regional Input-Output Tables From Establishment-Level Microdata: Illinois, 1982

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Working Paper Number CES-93-12

Abstract

This paper presents a new method for use in the construction of hybrid regional input-output tables, based primarily on individual returns from the Census of Manufactures. Using this method, input- output tables can be completed at a fraction of the cost and time involved in the completion of a full survey table. Special attention is paid to secondary production, a problem often ignored by input-output analysts. A new method to handle secondary production is presented. The method reallocates the amount of secondary production and its associated inputs, on an establishment basis, based on the assumption that the input structure for any given commodity is determined not by the industry in which the commodity was produced, but by the commodity itself -- the commodity-based technology assumption. A biproportional adjustment technique is used to perform the reallocations.

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