Research Papers

To Improve Comprehensiveness of Input-output Table with Private Business Data and Consideration of Changes in Industrial Linkage Structure

Society of Instrument and Control Engineers (SICE), Information Department Proceedings of the 10th Social System Committee Workshop

The input-output tables are an important tool in evaluating the indirect and multiplier effect of a shock. Various studies including Akagi (2015) and Ohsato (2015) have developed an algorithm for computing trade in intermediate goods and services using inter-firm transactions data held by Teikoku Databank. The use of inter-firm transaction data in compiling the intermediate trade component of input-output tables is based on the premise that the inter-firm transactions are complete and a reflective of the whole economy.

However, with financial information on 200,000 firms, Teikoku Databanks inter-firm transactions data is far from complete and not reflective of the trends in the economy as a whole. In this paper, we use the cost of sales information of companies with financial data and develop an algorithm to estimate the likely values of companies with no financial information thereby increasing the coverage of firms. The use of inter-firm transactions data for compiling input-output tables also the paves the way for regional input-output tables using. Given this, we consider the change in the industrial structure of Suwa City in Nagano Prefecture.