A note on the use of supply-use tables in impact analyses

Abstract

Little attention has so far been paid to the problems inheren t in interpreting the meaning of results from standard impact analyses using symmetric input-outpu t tables. Impacts as well as drivers of these impacts must be either of the product type or of the in dustry type. Interestingly, since supply-use tables distinguish products and industries, th ey can cope with product impacts driven by changes in industries, and vice versa. This paper contrib utes in two ways. Firstly, the demand- driven Leontief quantity model, both for industry-by-indu stry as well as for product-by-product tables, is formalised on the basis of supply-use tables, thu s leading to impact multipliers, both for industries and products. Secondly, we demonstrate how the s upply-use formulation can improve the incorporation of disparate satellite data into input-o utput models, by offering both industry and product representation. Supply-use blocks can accept any m ix of industry and product satellite data, as long as these are not overlapping