1. Item 24a: Symmetrical input/output tables
ESTP course on National Accounts ESA 2010
Luxembourg, 30 May – 03 June Eurostat

2. Structure Session 1 Session 2 Overview Supply and Use Tables (SUT)
Purposes of Input-Output framework
Balancing
Imports
Exercise
Session 2
Other issues
Symmetric Input-Output Tables (SIOT) 2

3. Exercise – flow chart of simple economy
100
350 90
220 30 50 70
100
100
140 60 70 3

4. Exercise: Convert flow chart into SUT scheme!4

5. 100
350 90
220 30 50 70
100
100
140 60 70 5

6. Exercise: solution 6

7. Structure Session 1 Session 2 Overview Supply and Use Tables (SUT)
Purposes of Input-Output framework (history)
Balancing (Value Added)
Imports
Exercise
Session 2
Other issues
Symmetric Input-Output Tables (SIOT) 7

8. Some more detailed issues
Classification
Valuation
Supplementary information 8

9. Classification Product classification >> industry classification
Grouping of local KAU
Market/non market output 9 9

10. Valuation supply table at basic prices use table at purchasers’ prices
GVA is recorded at basic prices
transition required from supply table to use table (extra columns):
Trade and transport margins
Taxes less subsidies on products
(see table 9.7 and table 9.8 of ESA2010) 10 10

11. Supplementary information
gross fixed capital formation by industry
stocks of fixed assets (net and gross) by industry
labour inputs by industry (hours worked)
division in market output, output for own final use and other non-market output 11 11

12. Structure Session 1 Session 2 Overview Supply and Use Tables (SUT)
Purposes of Input-Output framework (history)
Balancing (Value Added)
Imports
Exercise
Session 2
Some more detailed issues
Symmetric Input-Output Tables (SIOT) 12

13. Symmetric input-output tables (SIOTs)
Tool for analysis: effect and indirect effects / impact of policies / modeling
From SUT to SIOT: four transformation models based on assumptions

14. Overview 14 14

15. Symmetric input-output tables (SIOTs)
Two types of symmetric IO tables:
industry-by-industry: i*i describe inter-industrial relations (rather institutionally)
product-by-product: p*p describe technological relationships between production processes of products 15 15

16. SUT => SIOT 16

17. Role of statistical units
If industries are based on local KAU concept, then amount of secondary production will be low
-> difference between p*p and i*i will be small
If industries are based on concept of institutional units
=> more secondary output
=> bigger difference between p*p and i*i
P*p = a manipulated i*i table 17 17

18. IOT as a result of the transformation of the SUT

19. Structure Session 1 Session 2 Overview Supply and Use Tables (SUT)
Purposes of Input-Output framework (history)
Balancing (Value Added)
Imports
Exercise
Session 2
Some more detailed issues
Symmetric Input-Output Tables (SIOT)
Example/exercise 19

20. Transformation of the use table: p*p
product technology (model A)
Each product is produced in its own specific way, irrespective of the industry where it is produced
industry technology (model B)
Each industry has its own specific way of production, irrespective of its product mix (not recommended) 20 20

21. Transformation of the use table: i*i
fixed product sales structures (model C)
Each product has its own specific sales structure, irrespective of the industry where it is produced.
fixed industry sales structures (model D)
Each industry has its own specific sales structure, irrespective of its product mix (not recommended) 21 21

22. Product technology model pros and cons
Eurostat IO Manual (chapter 11) describes causes and remedies for negatives
P*p preferred in SNA: each column represents input structure of corresponding product – product technology model has same assumption
Ex: construction company producing repair services as 2nd product.
Negatives:
product technology incorrect (one product produced in two different ways) – chemicals
Economic relations / technological relations (one subcontracts, the other produces in house)
Positive feedback : Lot of hand work to improve data and increase homogeneity 22 22

23. Application

24. Embodied employment in exports
The “other service activities” benefitted most from the exports (9.5 million jobs) followed by manufacturing (9.4 million jobs); they make 75% over the total while manufact. increased by 0.35 Mio. Jobs; Services: 2 Mio.

25. Euro method and projection
Requirements
Supply and use tables or input-output table at basic prices for base year
Real growth rates for valued added of industries
Real growth rates for final demand (private consumption, government consumption, gross fixed capital formation, change in stocks, exports)
Real growth rate of imports