Spotting Error Patterns in Input–Output Projections Using Location Quotients

The Sustainable Development Goals (SDGs) stated by the United Nations (UN) constitute a universal agenda committed to human rights. In this context, mathematics can perform a fundamental role. Exploring possible contributions to these goals could be considered an interesting approach. Input–output (...

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Bibliographic Details
Main Authors: Xesús Pereira-López, Napoleón Guillermo Sánchez-Chóez, Melchor Fernández-Fernández
Format: Article
Language:English
Published: MDPI AG 2022-04-01
Series:Mathematics
Subjects:
Online Access:https://www.mdpi.com/2227-7390/10/9/1474
Description
Summary:The Sustainable Development Goals (SDGs) stated by the United Nations (UN) constitute a universal agenda committed to human rights. In this context, mathematics can perform a fundamental role. Exploring possible contributions to these goals could be considered an interesting approach. Input–output (IO) tables provide detailed information for socio-economic quantifications. Thus, they allow for more precise policy decision-making and application in the SDG strategy. However, the smaller the subnational unit to be considered, the less statistical information that is available. Survey-based IO tables with large product/industry disaggregation are seldom published. Therefore, non-survey methods to estimate subnational IO tables based on the national are needed. These methodologies should yield optimal results. In the present investigation, different formulations for these non-survey regionalization methods are analyzed. The work focuses on the methodologies based on location quotients (<i>LQ</i>). As a result, some error patterns associated with current formulations present in literature are described. A slight refinement of these methodologies is proposed in order to improve the estimation’s accuracy.
ISSN:2227-7390