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

Abstract

Little attention has so far been paid to the problems inherent in interpreting the meaning of results from standard impact analyses using symmetric input-output tables. Impacts as well as drivers of these impacts must be either of the product type or of the industry type. Interestingly, since supply-use tables distinguish products and industries, they can cope with product impacts driven by changes in industries, and vice versa. This paper contributes in two ways. Firstly, the demanddriven Leontief quantity model, both for industry-by-industry as well as for product-by-product tables, is formalised on the basis of supply-use tables, thus leading to impact multipliers, both for industries and products. Secondly, we demonstrate how the supply-use formulation can improve the incorporation of disparate satellite data into input-output models, by offering both industry and product representation. Supply-use blocks can accept any mix of industry and product satellite data, as long as these are not overlapping