Mathematical Discussion on the Relationship Between SUTs and SIOTs

Abstract

Since the 1993 System of National Accounts (SNA) and especially the 2008 SNA, traditional input-output table (IOT) of Leontief has been modified quite a lot with many variations. The supply and use tables (SUTs) seem to be substituted for the IOT, although there has not been a complete guiding to SUTs to IOT conversion. Originally in 1968 SNA, SUTs was called make and use matrices as an intermediate step to compile IOT. However, 1993 and 2008 SNA seem to replace IOT with SUTs, of which regulations make it difficult to convert from SUTs to IOT such as regulation on the size of supply and use tables and regulation on the prices of the intermediate input matrix. Some countries use computable general equilibrium (CGE) model, while others use both the CGE model and input-output analysis, so they need to convert SUTs into symmetric input-output tables (SIOTs). The construction of SIOTs is a controversial issue as regards the choice of model to construct both product-by-product and industry-by-industry SIOTs. This paper discusses the SUTs given in 1968, 1993, 2008 SNA, and the method for converting SUTs to SIOTs. Although there have been several articles on how to convert SUTs into SIOTs, this article is an effort to provide an easier, more understandable way to convert SUTs to SIOTs based on the arrangement of supply and use matrices.