According to the 1993 SNA and 1995 ESA recommendations, the annual Supply-Use Tables need to be compiled at both current and constant prices by the National Institutes of Statistics. The most appropriate way to obtain consistent Supply-Use Tables at both current and constant prices is to balance them simultaneously. The main complexity in balancing Supply-Use Tables and any other general accounting system simultaneously at both current and constant prices is the nonlinearity that inevitably occurs. Some attempts to solve the problem which are described in the literature are mainly based on the transformation of variables and definition of suitable matrices of variances and covariances of the system. In this paper, a suitable method is proposed to balance an extremely large set of National Accounts simultaneously at current and constant prices through the definition of a new procedure based on the predictor-corrector method. The distinctive features of the proposed balancing method are its flexibility, which is very high compared to the other methods in the literature, and its capability to allow the control of the consistency of the system of deflators. An application to the Italian 2006 Supply-Use tables has been worked out, and it has yielded good outcomes.
Supply-Use Tables: Simultaneously Balancing at Current and Constant Prices. A New Procedure
NICOLARDI, Vittorio
2011-01-01
Abstract
According to the 1993 SNA and 1995 ESA recommendations, the annual Supply-Use Tables need to be compiled at both current and constant prices by the National Institutes of Statistics. The most appropriate way to obtain consistent Supply-Use Tables at both current and constant prices is to balance them simultaneously. The main complexity in balancing Supply-Use Tables and any other general accounting system simultaneously at both current and constant prices is the nonlinearity that inevitably occurs. Some attempts to solve the problem which are described in the literature are mainly based on the transformation of variables and definition of suitable matrices of variances and covariances of the system. In this paper, a suitable method is proposed to balance an extremely large set of National Accounts simultaneously at current and constant prices through the definition of a new procedure based on the predictor-corrector method. The distinctive features of the proposed balancing method are its flexibility, which is very high compared to the other methods in the literature, and its capability to allow the control of the consistency of the system of deflators. An application to the Italian 2006 Supply-Use tables has been worked out, and it has yielded good outcomes.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
