Total Costs Coefficients in the Basic Input-Output Tables

Abstract

The article presents the results of the author's research devoted to the improvements in domestic developments of Input-Output Tables (IO Tables), significantly increasing their analytical potential. According to the author, the level of development of Russian statistics in the field of Input-Output Tables is quite high – the basic accounts contain not only the symmetrical IO Tables, but also symmetrical tables of domestic products and imports that they are derived from. This is the main condition for implementing the methodology and methodological solutions described and elaborated in the article for compiling the tables with the coefficients of total costs of domestic products and the total need for import of intermediate imports estimates.In the first part of the article, the author characterizes conceptually different versions of the intersectoral model with the features of the technological matrix corresponding to these versions – the basis for estimating the values of total costs coefficients in the national economy. Three «extreme» variants of the economy model representation of indicative country are studied. They define the economy as a part of a global economy within the framework of an inter-country model; in the form of a national model without the allocation of the import matrix in a symmetrical IO Tables (traditional method) and in the form of a national model with the possibility of such allocation (alternative method). The substantial differences in the values of total costs coefficients for the options are described and their preference for study of the country's economy is emphasizedThe second part of the article presents the results of a quantitative analysis based on the basic IO Tables for 2016 data. It contains the estimates of the measure of discrepancy in total costs coefficients values according to traditional and alternative methods; the differences in the associated indicators of intermediate products total costs distribution by specific dimensions of final demand. The analytical possibilities of the alternative method are described, the estimates for the decomposition of final products cost into domestic and imported value added are provided.The author explains the analytical relevance of total costs coefficients using an alternative method in forecasting practice and in the macroeconomic effects of management decisions assessment and proposes to supply the basic IO Tables for 2021 with tables with these coefficients and with the necessary methodological explanations