Karel Šafr, Jaroslav Sixta
Interregional Flows for the Czech Economy
Číslo: 4/2018
Periodikum: Statistika
Klíčová slova: Regional Input-Output tables, Input-Output analysis, entropy theory, gravity method
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Anotace:
The paper brings both the methodology and data on the construction of regional flows in the interregional
model. We focus on the comparison of the entropy method and the commonly used gravity method.
The entropy method is based on minimizing import distances at the determined rate of entropy of the
interregional flows of intermediaries. The gravity method is used in its standard form with an additional factor
for adjusting the warehouses, and its parameters are estimated for physical flows. The resulting estimates are
then applied on the regional input-output tables and are used to construct a standard Leontief interregional
model. To analyse the difference between the two models, we use a graphical representation. Furthermore,
we assess the percentage deviation of the average Leontief multiplier in the regional submatrices. We proved
that, although the interregional output flows appear different and the relative structure of Leontief matrix
is different, the resulting impacts on the regions do not fundamentally differ.
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model. We focus on the comparison of the entropy method and the commonly used gravity method.
The entropy method is based on minimizing import distances at the determined rate of entropy of the
interregional flows of intermediaries. The gravity method is used in its standard form with an additional factor
for adjusting the warehouses, and its parameters are estimated for physical flows. The resulting estimates are
then applied on the regional input-output tables and are used to construct a standard Leontief interregional
model. To analyse the difference between the two models, we use a graphical representation. Furthermore,
we assess the percentage deviation of the average Leontief multiplier in the regional submatrices. We proved
that, although the interregional output flows appear different and the relative structure of Leontief matrix
is different, the resulting impacts on the regions do not fundamentally differ.