Newsletter
Number 48, May 2021

Welcome from the Editor

In this issue
Welcome from the Editor….…………….……….1
Presidential Message…….……………….….…...2
Dear IIOA member,

Events………….………….…………………………….….…..4I am very pleased to release the latest issue of the International Input-Output Association
Newsletter. Many thanks to all of you that have contributed sending your inputs.
This issue contains a presidential message regarding the virtual IIOA campaign, the latest ESR
articles, highlights in Journals and recent I-O books, but also next events including the next IIOA
Webinar by Thomas Howells and the Online Development Programme. You can also find the Tale ofthe 10th Anniversary of the reunion in Réunion, very important awards and promotions by the IIOA
members and a job position. The Social Accounting Corner brings this time conversations with Krista
Danielle Yu and Michael L. Lahr. It is an issue full of interesting news that I hope you will enjoy!
Any feedback, comments or suggestions are greatly appreciated. I also welcome contributions tofuture issues.

I-O Tales: A reunion in Réunion…....…..10
Other IIOA news…………………...……..……........16
Databases……………….….…………..……..….........20Awards and promotions………………..……...21
Published papers and books in IOA...24- Latest ESR articles……..………………..26- Highlights in journals…………….……36
Job positions………………………..………..........40
The Social Accounting Corner….…......41

Andre Carrascal Incera
IIOA Newsletter Editor
University of Oviedo, Spain
Newsletter E-mail: newsletter@iioa.org
Personal E-mail: carrascalandre@uniovi.es

Would you like to contribute to the IIOA
newsletter?
Send us your news at newsletter@iioa.org

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Number 48, May 2021

Presidential Message - The Virtual IIOA Campaign was launched!!
Dear valued IIOA members

As I announced in the previous issue of the IIOA
Newsletter, we are currently running the “Virtual IIOA
Campaign”. This is the first trial of a virtual campaign in
the IIOA’s history, as well as being exploratory for its
future.
This campaign is a full-scale attempt by the IIOA Council to catch up with ourchanged research environment. The campaign is intended not only to make up forlost opportunities caused by the cancellation of the 2021 conference, but also to
exploit new possibilities brought upon by new-found communication technologies
increasingly available to us.

We kicked off Campaign on 17 February 2021 with a webinar by Prof. Maureen
Rimmer from the Centre of Policy Studies at Victoria University in Melbourne,
Australia. She presented on a CGE-based technique of historical simulation fordata estimation, including that of input-output tables, with a particular reference
to GTAP modelling.
The next in line was Dr. Richard Wood from Industrial Ecology Programme, NTNU
Trondheim, Norway, on 17 March 2021. His presentation delivered a concise
introduction to the concept of a consumption-based approach toeconomic/environmental analyses, and why it matters. Capitalizing on EXIOBASE
database, he articulated a need for demand side (consumption side) mitigation on
GHG emission and equity problems.

The latest webinar was given on 6 May 2021 by Prof. Yauhide Okuyama from
Kitakyushu University, Japan. He presented an excellent overview of themultitude of research works in disaster analyses, and indicated a future
direction of the application of input-output techniques to this field of anincreasing attention among academics and policy-planners alike.
These webinars were recorded and made available for viewing at the top pageof the IIOA website.
Another important strand of the Campaign is the International School of InputOutput Analysis (ISIOA) Online. Since its first courses in 2010, the ISIOA has
been a core component of IIOA conferences. With the current unfortunate
circumstances of having to give up two conferences in sequence due to Covid19, however, we decided to bring it online and make it asynchronous with any
conference.
The first module of the current edition (10th) was delivered from 08 to 29
March 2021 by Prof. Heinz D. Kurz and Prof. Christian Lager from the
University of Graz, Austria, with the title "Historical Roots and Theoretical
Background of Input-Output Analysis". A full 74 members registered, of which
9 intend to seek official certification. You can now review the recordings of thefour lectures through the ISIOA section in our website.

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Number 48, May 2021

Presidential Message - The Virtual IIOA Campaign was launched!!
I express my sincere gratitude to all IIOA members for their continued interest inthese programmes, as well as to the Council members/associated colleagues fortheir invaluable efforts and contribution in propelling these new ventures
forward.
Last but not least … while many of the programmes of the Campaign virtuallyemulate events of physical IIOA conferences, the Campaign itself is NOT
intended to replace them…! That is, once current difficulties are overcome andwith your help, the IIOA Council will identify a best mix of virtual programming
and real face-to-face conferencing!
Well, I stop here, but please remain attentive to upcoming announcements fromus … many more are expected!!

Best wishes,
Satoshi INOMATA (President of the IIOA)

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Number 48, May 2021

EventsNext IIOA Webinar
Block your calendars: IIOA Webinar!
On Thursday June 3, Thomas Howells (U.S. Bureau of Economic Analysis)
will give a talk with the title "BEA’s Supply-Use Framework: Current
Research and New Extensions".
In this webinar Tom will provide an overview of BEA’s structure, the roleof the supply-use framework as the foundation for many of BEA’s
products, and ongoing research building on BEA’s SUTs/IOTs—including
work on TiVA statistics, supply chain analysis, and satellite accounts
covering the digital economy, marine economy, and commercial spaceeconomy.
The webinar will begin at 10pm Tokyo time, which corresponds to 9pm
Beijing time, 3pm Vienna time, 10am Sao Paulo time and 9am
Washington DC time. All IIOA members and other interested colleagues
are most welcome to attend!
More information and the link to the meeting will be disseminated abouta week before the webinar.
Best wishes,
Bart Los, Sanjiv Mahajan and Doug MeadeIIOA Online Development Programme 2021
To give young researchers a chance to receive feedback on their papers in a year
in which the IIOA had to cancel its international conference again, an online
version of the Development Programme will be offered. This announcement
presents the details of this event (which is part of the IIOA's Virtual Campaign). All
IIOA members is invited to attend!

July 5 – July 9

Important dates:- MS Teams will be the platform used;▪ Submission of full papers
through COPASS(copass.iioa.org)
May 31st, 2021

- Each session contains at most 3 presentations.
Each speaker has 15 minutes for presentation,
10 minutes for discussion. The total number ofsessions in the program depends on thenumber of accepted papers (max. of 10);
- Papers can only be presented by researchers
who were born in 1980 or later (co-authors
are allowed to be older);- Participation (speakers and attendees) is freeof charge for all IIOA-members.

▪ Communication of
selection to the authors by
June 10th, 2021
▪ Full Programme will beannounce by June 18th,
2021

We sincerely hope that young researchers will take this opportunity to present
their work and to get feedback, despite the unfortunate circumstances they are
currently experiencing. Please do not hesitate to contact us (b.los@rug.nl) if you
would have questions or comments.
Best wishes and stay safe,
Rossella Bardazzi, Bart Los and Anne Owen (organizers)

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Number 48, May 2021

EventsSHAIO events

Dear IIOA community,
Thank you for the great acceptance of the webinars held to date.
Throughout 2021 we will continue to develop this series of webinars
on a wide diversity of topics.

The entire input-output community is invited to join our webinars. If
you are not a SHAIO member, you only need to fill in a registration
form that will appear about two weeks before each webinar on our
web pages and social networks.
Don’t forget to subscribe to our social networks Facebook and Twitterto be updated with our events and we remind you that you can enjoy
the previous meetings and download the materials presented from our
Youtube channel and our web page.
From SHAIO, we wish you and your families all the best.
Stay healthy!!

The SHAIO Council.

We can confirm the speakers for the following three webinars thatwill take place in May, June, and October 2021:• May 27 (5:00 pm, CET): Luis Pedauga, University of León, Spain(language: Spanish, materials in English).
• June 24 (5:00 pm, CET): Julia Steinberger, University of Lausanne,
Switzerland (language: English). Webinar developed in collaboration
with the Energy Modeling Network for Sustainable Energy Transition(RedMentes).
• October 28 (5:00 pm, CET): Pablo Ruiz Nápoles, UNAM, Mexico(language: Spanish, materials in English).

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Number 48, May 2021

EventsSHAIO events
Dear colleagues,
The Faculty of Economics and Business of the
University of León and the Department of
Economics and Statistics are pleased to invite you
to participate in the 8th permanent Workshop of
the Hispanic-American Input-Output Society(SHAIO), which will be held in September of 2021
in León (Spain).
The health crisis caused by COVID-19 requires
adopting preventive measures and following
strict health protocols to prevent infection. For
this reason, the organization committee of the
8th permanent Workshop of SHAIO has decided
to adopt a double modality workshop (online andon-site).
Given the current protocol of measures Covid-19,
the capacity in the spaces of the CRAI-TIC (placeof the event) has been limited by the norms of
the university to a total of twenty on-site
participants.

These participants will be chosen from those who select to be indifferent
between online and on-site presentation when they send the abstract. As far as
sanitary conditions allow it. Of course, the online presentation will be available
for those who show their preference for the online presentation.
We are sure of the hospitality that characterizes this millenary city will offer in
the next meeting the most favorable conditions to share and discuss our latest
works. This 8th meeting is another example of the consolidation of a constantand uninterrupted meeting in addressing all these issues of relevance in theeconomic analysis.
The keynote speaker confirmed is Óscar Dejuán (University of Castilla-La Mancha,
Spain).
Key Dates:
•
•
•
•
•

Abstract submission→ June 15, 2021
Notification of acceptance → June 30, 2021
Full paper submission → July 13, 2021
Registration → August 15, 2021
Workshop → September 23-24, 2021

More information at: http://wio8.shaio.es/en/
We are looking forward to seeing you in León!

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Number 48, May 2021

EventsFIGARO launchEurostat in close cooperation with the Joint Research Centre of theEuropean Commission is organising a virtual event "Full International
and Global Accounts for Research in input-Output analysis (FIGARO)"
on 26 May from 15:00 to 16:30 CET. The event aims to raise awarenessof this new statistical product and to discuss its main uses. FIGARO are
EU inter-country Supply, Use and Input-Output tables.
The event will be an opportunity to discover FIGARO statistics, a uniquetool allowing economic modellers, policy-makers, and other interested
parties to analyse the socio-economic and environmental effects ofglobalisation. How FIGARO data helps us understand the links between
jobs, income and trade is only one of the questions we will look at.
The event will be opened by Ms Mariana Kotzeva (Director General ofEurostat) and Mr Stephen Quest (Director General of the Joint
Research Centre). The keynote speakers are:
• Prof Erik Dietzenbacher (University of Groningen);• Mr Bernhard Michel (Federal Planning Bureau, Belgium);• Mr Ignacio Garcia Bercero (DG TRADE, European Commission).

You are invited to register your participation here. Deadline forregistration is 25 May 2021 at 12:00 CET. Connection details for livestream will follow in due time.
We hope to see you all at the FIGARO launching event!

Registrations:
https://eu.eventscloud.com/website/4590/#EUmodelling@EU_ScienceHub

On behalf of Lena Frej Ohlsson
Head of Unit C5 Integrated global accounts and Balance of Payments
Pille Defense
Unit C5 Integrated global accounts and Balance of Payments
Supply, use and input-output tables
European Commission
EUROSTAT

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Number 48, May 2021

EventsCall for papers for funding research Research Network
Sustainable Global Supply Chains
The Economics and Governance of Sustainability in Global Value
ChainsThis call for proposals aims to fill this gap by inviting applied and policyrelevant research that speaks to topic of sustainability in GVCs, mainly
but not exclusively using quantitative analyses. We are in particularinterested (1) in research that attempts to measure and to attributesustainability outcomes (social and environmental) to GVC
participation; (2) in research that attempts to identify (causal) drivers(including policies) of sustainable production in GVCs and conditions
that determine how GVC participation impacts sustainability outcomes;and (3) in research that considers possible unintended consequences
and trade-offs of such drivers and dimensions of sustainability.

Conference "Sustainability in GVCs"
The Research Network on Sustainable Supply Chains will host a
research conference in collaboration with UNIDO, aiming to bring
together state of the art empirical research to further shed light on thesubject of sustainability in global value chains. The research conferenceis an official part of UNIDO’s annual Forum on Globalization andIndustrialization (FGI 2021), organized as a back-to-back event on
December 6 and 7, 2021.
Interested applicants wishing to present original research should send
an extended abstract (600-1000 words) in PDF format stating“Conference abstract” in the subject line to: globalsupplychains@gigahamburg.de by 31 May 2021. Before submission please read thedetailed call for papers.
CONFERENCE SUBMISSIONS AND DEADLINES:▪ 31 May 2021 – Extended abstract submission (600-1000 words)▪ 30 July 2021 – Paper submission deadline▪ 15 August 2021 – Acceptance/rejection notification▪ 15 November 2021 – Final papers due

Please find the detailed call with submission details here and here.

▪ 6 December 2021 – The 2021 Forum on Globalization and Industrialization

Please contact globalsupplychains@giga-hamburg.de in case ofquestions.

▪ 7 December 2021 – Research conference8Newsletter
Number 48, May 2021

EventsCall for papers
Authors need to submit an extended abstract of maximum 2 pages(1000 words) in English by 30 June 2021.
Contributions should cover model development and use for policy
development, assessment and implementation in the EU and in theMember States. Submissions should refer to one of the following areas:

Dear colleagues,
The Competence Centre on Modelling of the European Commission isorganising the 2021 EU Conference on modelling for policy support.
The event will take place fully online during the week of 22 – 26
November 2021.
The Conference brings together researchers and policymakers from
European and international institutions, Member States, universities,
research institutes and consultancies. Its aim is to identify common
challenges and solutions in the use of models to support policymaking.
The 2021 programme will also offer interactive opportunities of
exchange such as workshops and trainings.

1.

Transparency of models and their use

2.

Ensuring model quality

3.

Scenarios and data

4.

Assessing and communicating uncertainty in model results

5.

Multidisciplinary approaches, integrated assessment and model linkages

6.

Complex systems and multicriteria analysis for policy modelling

7.

Combination of qualitative and quantitative methods

8.

Communication and visualisation of model results

9.

Using model related evidence for policy: processes and experiences

Abstracts can refer to all policy fields characterised by the use of models
in support to policymaking. They should clearly indicate the relevanceand implications for model development and use in support to policy.
The direct involvement of both scientists and policymakers in thepresentation, as well as reference to concrete experiences ofcollaboration across disciplines, is an asset.
Contact: Please visit the Conference webpage or contact
EU-CONF-MOD@ec.europa.eu

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Number 48, May 2021

Tales from the I-O world:
A reunion in Réunion,
or: Impressions from the founding of an MRIO project
The Rationale
Réunion, a French Département in the Indian Ocean just east of Madagascar, is aplace of many contrasts. Situated 9,500 km from Groningen/Leiden in the
Netherlands, 9,200 km from Sydney in Australia, and 10,800 km from Chiba inJapan, it seemed to be a good place to bring together the representatives ofMulti-Region Input-Output (MRIO) frameworks that had one year earlier – in2010 – sat around a table at the IO Conference in Sydney, to discuss whether
their respective initiatives could be unified. Initial doubts (Erik: ”Is this a joke?”)were dispelled, and at the end of March 2011, seven MRIO researchers met at
L’Hermitage-les-Bains on Réunion’s west coast: Arnold Tukker (EXIOBASE), Terrie
Walmsley (GTAP), our President Satoshi Inomata (IDE-JETRO), Erik Dietzenbacher
and Bart Los (WIOD), Tommy Wiedmann and Manfred Lenzen (Eora). Project
Réunion was joined at subsequent meetings by Nori Yamano (OECD), Glen Peters
and Robbie Andrew (GTAP), and Bo Meng (IDE-JETRO).
Tommy reminded us that this reunion in Réunion now celebrates its 10th
anniversary. The idea of unifying MRIO frameworks was then and is still now
important for creating trust in MRIO results – trust that is needed to give MRIObased research a chance of making it into policy-making circles, such as theIntergovernmental Panel on Climate Change.
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Number 48, May 2021

Tales from the I-O world:
A reunion in Réunion,
or: Impressions from the founding of an MRIO project
The Meeting
Despite this clear rationale, the meeting did not start off on a good footing. The
first day was marked with recognising differences, emphasising past investmentsin specific work flows, noting accounting hurdles, and highlighting organisational
restrictions on the ability to share information. At some point, the meeting was
adjourned, and people went snorkelling.
There’s something that watching colourful fish in a lagoon does to you. Whether
it’s the stillness under water, or their blissful oblivion to your presence, or theirabundance in shapes and numbers, it reminds one of the fact that there arethings (quoting Arnold) “much more memorable than the IO maths and data we
tried to align”. I would add, much more significant too. In any case, (quoting
Terrie), “the release of tension in the room as we got to know each other betterand the issues each of us faced” was evident. I ascribe this to the fish in that
lagoon.
The post-snorkelling mood in the room is best described as “Let’s give this a go!”.
A notable notion was Erik’s “Mother Of All MRIOs” – an MRIO database so bigthat any of the teams’ research priorities and preferences could beaccommodated by tailored aggregation. (I later found that Wittwer and Horridge
2010 had a somewhat similar plan with their TERM database; TERM as in “The
Enormous Regional Model”. Both Erik’s epiphany and Wittwer and Horridge’s
enormous machine then inspired the IO Virtual Laboratories.)

Collaboration – before (left) and after (right) a snorkelling excursion. On the left, Erik can be seen
taking a cigarette break, perhaps wondering whether he had come all this way for nothing, whilst
Satoshi is scratching and shaking his head, and Terrie and Arnold checking on their return flights(?). Later, the initial tension in the room had evaporated thanks to a number of unnamed colourful
fish. On the right, Erik can be seen lecturing the room on his concept of “The Mother Of All
MRIOs”, with Arnold being bemused, and Tommy amused.

After much deliberation, and to my great relief, we all decided that the rationale
and purpose of this reunion on Réunion was not dead. We even decided to put
money and time behind it: Satoshi and I mobilised the former, everyone madeavailable the latter.
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Number 48, May 2021

Tales from the I-O world:
A reunion in Réunion,
or: Impressions from the founding of an MRIO project
The Aftermath
Buoyed by a common purpose, and by then familiar with each other, the teamspent a few more days on the island. Satoshi discovered a treasure trove of
indigenous island music which he took home for his dad. Terrie and I discovered
our mutual passion for keeping country tallies. Tommy discovered that excessive
snorkelling causes sunburn. Finally, Arnold discovered that steep slopes become
slippery during rain: His solo hiking tour almost ended in disaster when rainstarted to fall, and he had to face a few-100-metre descent (which “felt likedescending K2 at the time”) to the village where he wanted to stay. He just madeit as night fell.

10 years ago - it’s done! Project Réunion has agreement. Participants decide to give MRIO
unification a go, and look for funds to make things happen. Back row left to right: Bart, Manfred,Arnold, Terrie, and Satoshi. Front row: Tommy and Erik.

The highlight for many was our ascent of the Piton de la Fournaise, a 2600
metres high shield volcano dominating the island’s south-east. It had erupted
three times just the year prior, with the December 2010 eruption not even fourmonths gone. Enshrouded in mist and fumes, we once again realised that there
are things (quoting Arnold) “much more memorable than the IO maths and data
we tried to align”. Again, I would add, much more significant too. Luckily, a
release of tension, like the one that Terrie noticed in our meeting room, did notoccur in the volcano’s personality, whilst we were marvelling at its crater’s
menacing demeanour.
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Number 48, May 2021

Tales from the I-O world:
A reunion in Réunion,
or: Impressions from the founding of an MRIO project
The Fall-Out
After Réunion, the collaboration went on to secure a research grant from theAustralian Research Council (ARC), funding students to stay at CML Leiden
with Arnold, and the University of Groningen with Bart and Erik. Two
subsequent meetings were held: at the second meeting in Tokyo in January
2013 (thankfully organised by Satoshi), and the third and final meeting in
Kurokawa Onsen in July 2013 (thankfully organised by Nori), a researchstrategy for the ARC grant was developed, including an MRIO InterComparison project, and strategies for communication, science and policy
outreach. The project was concluded at the IO Conference in Atlantic City in
2017.

Project Réunion on top of the Piton de la Fournaise (2632m). The volcano had erupted threetimes just the year prior. Satoshi taking precautions, Terrie taking in the abyss, Tommy taking
photos.

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Number 48, May 2021

Tales from the I-O world:
A reunion in Réunion,
or: Impressions from the founding of an MRIO project
Ultimately, MRIO unification did not happen, but with so many projects, many
lessons were learned along the way, and people got to know each other, andeach other’s research work and outlook. If you would like to read up on theoutcomes of Project Réunion, try

References- the website https://isa.org.usyd.edu.au/mrio/mrio.shtml (outdated though);Geschke, A. and M. Hadjikakou (2017) Virtual laboratories and MRIO analysis – anintroduction. Economic Systems Research 29, 143-157.

- the excellent synthesis for ESR’s MRIO Special Issue by Arnold and Erik (Tukker
and Dietzenbacher 2013);- the equally excellent introduction for ESR’s MRIO Inter-Comparison Special
Issue by Satoshi and Anne (Inomata and Owen 2014);- the Project Réunion summary papers (Abd Rahman et al. 2017; Lenzen et al.
2017; Reyes et al. 2017) in ESR’s Virtual Lab Special Issue (Geschke andHadjikakou 2017), and the abstract of the final presentation at the Atlantic City
Conference (https://www.iioa.org/conferences/25th/papers/files/2791.pdf).
To conclude, I quote Erik : “Perhaps it's time make a project for a reunion of
Project Réunion!”

Abd Rahman, M.D., B. Los, A. Geschke, Y. Xiao, K. Kanemoto and M. Lenzen (2017) A
flexible adaptation of the WIOD database in a virtual laboratory. Economic Systems
Research 29, 187-208.

Inomata, S. and A. Owen (2014) Comparative evaluation of MRIO databases.
Economic Systems Research 26, 239-244.
Lenzen, M., A. Geschke, M.D. Abd Rahman, Y. Xiao, J. Fry, R. Reyes, E. Dietzenbacher,
S. Inomata, K. Kanemoto, B. Los, D. Moran, H. Schulte in den Bäumen, A. Tukker, T.
Walmsley, T. Wiedmann, R. Wood and N. Yamano (2017) The Global MRIO Lab charting the world economy. Economic Systems Research 29, 158-186.
Reyes, R.C., A. Geschke, A. de Koning, R. Wood, T. Bulavskaya, K. Stadler, H. Schultein den Bäumen and A. Tukker (2017) The Virtual IELab – an exercise in replicating
part of the EXIOBASE V.2 production pipeline in a virtual laboratory. Economic
Systems Research 29, 209-233.
Tukker, A. and E. Dietzenbacher (2013) Global multiregional input-output
frameworks: An introduction and outlook. Economic Systems Research 25, 1-19.

By Manfred Lenzen, University of Sydney

Wittwer, G. and M. Horridge (2010) Bringing Regional Detail to a CGE Model using
Census Data. Spatial Economic Analysis 5, 229-255.
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Number 48, May 2021

Tales from the I-O world:Three reflections on Project Reunion
The first memory is about the island itself. It is: mangos, mangos, mangos!
Mangos for breakfast, mangos for tea, mangos in bed, mangos in bath, mangos
in the street, mangos on TV. It sounds like a rocksong. Perhaps Richard Baldwin
was right when he called us rockstars.
It is true that I thought it was a joke. A serious meeting in a holiday resort, sandy
white beaches and a bit of snorkeling, a deck chair with a Tequila Sunrise. Yes, it
was a holiday resort, the beaches were sandy and white, I swam amidst the coral
reefs and had my Tequila Sunrise. But it also was a very serious meeting.
Manfred was happy to explain why this was the perfect location, also from an
economic and environmental point of view. The algorithms for finding the
optimal location for the distribution center in a network couldn’t have done
better. People coming from Europe, the US, Australia, and Japan, requiring goodconnections, minimizing travel time and distance. The solution was Ile de la
Reunion, the French Island close to Madagascar.
The first part of the workshop was a bit tough. Partly because we didn’t knoweach other that well, but also because we were perhaps a bit suspicious. No-one
wanted to give his/her precious data away for free. ‘What’s in it for me’ and‘competition’ were buzzing in the air. It was a bit of a deadlock and as a way out
we started to make a sketch of the ideal GMRIO table. This was coined the‘Mother of all GMRIO databases’.

It is as detailed as possible in terms of sectors and products, with a set ofsocio-economic and environmental extensions as extensive as possible,
covering the globe and discerning as many as possible countries andregions, including long time series, and is cost-effective to build. Thismother was huge! It became clear that such an ideal database does notexist and will probably never be constructed. This made us realize that
there was no need to be afraid of each other or to compete with eachother. This mother was so huge, there was enough for each of us. We
realized that several GMIO databases could easily exist next to each other,each of them with its own advantages and disadvantages and each of thembased on choices that the developers had to make. This realizationloosened up all tensions. This mother had a set of siblings who spent a
couple of very nice days on Reunion. Song
By Erik Dietzenbacher, University of Groningen

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Number 48, May 2021

Other IIOA NewsA new 3rd edition of Ron Miller and Peter D. Blair's text, Input-Output Analysis:
Foundations and Extensions, is now scheduled for release by Cambridge University Press,
this coming August. Link

The new edition has been fully revised and updated to reflect important developments inthe field. Expanded coverage includes construction and application of multiregional andinterregional models, including international models and their application to global
economic issues such as climate change and international trade; structural decompositionand path analysis; linkages and key sector identification and hypothetical extraction
analysis; the connection of national income and product accounts to input-output
accounts; supply and use tables for commodity-by-industry accounting and models; social
accounting matrices; non-survey estimation techniques; and energy and environmental
applications.
Accompanying the text will be an expanded associated website as well, including
additional technical appendices, a computational workbook with exercise problems andsolutions aligned with the book’s chapters, and a collection of input-output data usedthroughout the book.

Contents of 3rd Edition of Input-Output Analysis: Foundations andExtensions
Preface
1 Introduction and Overview
2 Foundations of Input–Output Analysis
3 Input–Output Models at the Regional Level
4 Organization of Basic Data for Input–Output Models
5 The Commodity-by-Industry Approach in Input–Output Models
6 Multipliers in the Input–Output Model
7 Supply-Side Models, Linkages, and Important Coefficients
8 Decomposition Approaches
9 Nonsurvey and Partial-Survey Methods: Fundamentals
10 Nonsurvey and Partial-Survey Methods: Extensions
11 Social Accounting Matrices
12 Energy Input-Output Analysis
13 Environmental Input–Output Analysis
14 Mixed and Dynamic Models
15 Additional Topics
Postscript
Appendices
Appendix A. Matrix Algebra for Input–Output Models
Appendix B. Guide to Online Input-Output Data Resources for This Text
Appendix C. Historical Notes on the Development of Leontief’s Input–Output
Analysis
Supplemental Online Appendices
Additional Technical Appendices
Input-Output Analysis Computational Workbook Exercises
Input-Output Analysis Data Archive

By Peter D. Blair, George Mason University

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Number 48, May 2021

Other IIOA News
This is the first time the Australian Department of Industry, Science,
Energy and Resources has used input-output tables to produce a
consumption-based national greenhouse gas projection. The data show
Australia to be a net emissions exporter. For further details see
https://www.industry.gov.au/sites/default/files/2020-12/australiasemissions-projections-2020.pdf.
At the recent Leaders Summit on Climate, the Australian Prime Ministerconnected emissions with exports, by stating(https://www.pm.gov.au/media/remarks-leaders-summit-climate) that“already we have reduced our emissions by 19 per cent on 2019 - on 2005
levels I should say, more than most other similar economies - and by 36%
when you exclude exports.”
For a critique, see
https://www.theguardian.com/environment/2021/apr/23/australia-hasbeen-talking-up-its-climate-credentials-but-do-the-claims-stack-up.

Manfred Lenzen, University of Sydney

ESR WITH THE HIGHEST SCORE IN POLISH JOURNAL RANKING
In January 2022 Polish Ministry of Education and Science (formerly Ministry of
Science and Higher Education) will assess the quality of research acrossscientific disciplines in national universities. The assessment will be based on
measuring the quality of publications that were released in the final form in
the period 2017-2021. In order to conduct the assessment authorities in
Poland have thoroughly worked out a new system of research evaluation Polish Journal Ranking (henceforth referred to as the PJR). Noteworthy, ESR
was awarded the highest possible score in PJR.
The PJR is one of the main elements of the ongoing reform of the system ofhigher education in Poland and sets the ground for the performance-based
research funding system. Journals listed in PJR are divided into 6 categories
depending on the level of ministerial points awarded, i.e. 20, 40, 70, 100, 140
and 200 points. Without going into details, each researcher being evaluated in
January 2022 by Polish Ministry of Education and Science may report no morethan four best publications (technically, the of sum of percentage shares of agiven researcher in all the reported publications across all the scientificdisciplines declared by a given author cannot exceed 400%), thus for the very
first time in the history of evaluating research in Poland not the number but
the quality of publications matter the most. The maximal number ofministerial points that an individual researcher may get in this scoring systemis therefore 800. All individual results of the employed researchers areaveraged across scientific disciplines and this gives the overall result of
evaluating a given scientific discipline at a given university.
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Other IIOA NewsThe first (and at the same time most recent) release of the PJR was announced
in 2019 and was preceded with a very long and lively debate on the optimal
choice of criteria of ranking the scientific journals with respect to their quality.
As already mentioned, the score of ESR in PJR is 200 points (i.e. the highest
possible) which is similar to top economic and environmental journals, like
Energy Economics (200 points), but higher than the score of Energy Policy (140points), Ecological Economics (140), Regional studies (140), Water research(140), Structural Change and Economic Dynamics (100), Spatial Economic
Analysis (100), Economic Development and Cultural Change (100) and Papers
in Regional Science (70). PJR covers more than 1800 journals that wereassigned to the discipline of economics. Distribution of PJR scores in thisparticular field is given below:

As can be seen in the figure in the discipline of economics about 3% of theevaluated journals were given the highest note in PJR, while more than 40% ofjournals were awarded the lowest PJR score (20 points).
PJR scores were awarded according to the following algorithm:
Stage 1:A starting point was to define the classification of the scientific disciplines. This stage
was inspired by the classification of scientific disciplines of OECD. As a result 44
scientific disciplines were defined in PJR. The complete evaluation procedure
covered more than 31000 journals (and 1500 conference materials), including
mainly the titles indexed in SCOPUS or Web of Science (WoS), but also a portion ofjournals listed in ERIH+ and a number of Polish journals not indexed in SCOPUS nor
WoS (these were added in course of government’s policy of promoting national
journals). Each evaluated journal was assigned to one or more scientific disciplines
depending on the decision of ministerial teams of advisors.

Stage 2:At this stage for all the disciplines that a given SCOPUS- and/or WoS-indexed journal
was assigned to, the team of ministerial advisors calculated percentiles of
distributions of six major bibliometric indicators of research evaluation: Source
Normalized Impact per Paper (SNIP), CiteScore, Scimago Journal Rank (these were
calculated for SCOPUS-indexed journals) and Journal Impact Factor, Article
Influence, Category Normalized Citation Impact (WoS-indexed journals). In case ofeach bibliometric indicator used the journals were awarded initial levels of points ineach discipline they were assigned to:18

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Other IIOA News• 200 points if the percentile value of the bibliometric indicator was at least 97;• 140 points if the percentile value of the bibliometric indicator was at least 90, but less than 97;• 100 points if the percentile value of the bibliometric indicator was at least 75, but less than 90;• 70 points if the percentile value of the bibliometric indicator was at least 50, but less than 75;• 40 points if the percentile value of the bibliometric indicator was at least 25, but less than 50;• 20 points if the percentile value of the bibliometric indicator was less than 25.
• 20 points if the percentile value of the bibliometric indicator could not be calculated.

Stage 3:
In case of each discipline the respective advisory team selected just one main
bibliometric indicator for Scopus-indexed journals (out of the three possibilities
outlined in Stage 2) and just one bibliometric indicator for the WoS-indexed ones
(also from the three possibilities listed in Stage 2). Next, the results obtained inStage 2 were restricted the two chosen bibliometric indicators. If for a given
journal in a given discipline the SCOPUS-based and the WoS-based scores weredifferent the higher score was chosen as PJR score at this stage.
Example 1: In case of discipline X the advisory team decided to use Source Normalized Impact
per Paper (SNIP) for Scopus-indexed journals and Journal Impact Factor (IF) in case of journals
listed in WoS. At this stage journal B, indexed in both SCOPUS as well as WoS, was awarded:• 140 points based on the percentile value of SNIP,• 70 points based on the percentile value of IF.
Journal’s B discipline-specific score in discipline X was therefore set at the level of 140 (the bigger
number).

At this stage the overall PJR score of a given journal was set as the level ofministerial score that is closest to the average of scores obtained in all thedisciplines the journal was assigned to. If the average score lied exactly between
two levels of scoring the higher level of scoring was assigned (e.g. for the averagescore equal 120 the level of scoring equal to 140 would be assigned, as 120 lies
exactly between the ministerial levels of scoring 100 and 140).

Example 2: Assume journal B was assigned to 3 scientific disciplines X, Y and Z at Stage 1. Further,assume that in these disciplines following scores were awarded based on Stage 2 and Stage 3 (thebibliometric indicator chosen by the discipline-specific advisory teams are given in parentheses):• discipline X – 100 points (IF)• discipline Y – 70 points (SNIF)• discipline Z – 70 points (SNIF)At Stage 3 the overall PJR score of journal B in disciplines X, Y and Z is then equal to
70 points (the average of individual discipline-specific scores of journal’s B in
disciplines X, Y and Z is 80 and the closest level of ministerial scoring is 70).

Stage 4:
Before setting the final overall PJR score all the discipline-specific scores obtained inStage 3 were once again thoroughly reviewed by discipline-specific panels of
experts. In case of each discipline the analysis was aimed at examining:• the values of the bibliometric indicators that were not used to calculate thediscipline-specific score in Stage 3;• the relative significance of a given journal in all the disciplines it was assigned to inStage 1.
Experts could provide detailed justification for changing the PJR discipline-specificjournal score calculated at Stage 3 by no more than two scoring levels. In 2019
experts suggested changing the score obtained in Stage 3 in case of almost 8000
journals with:
1. about 4500 suggestions of increasing the score
2. about 3500 suggestions of decreasing the score.
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Other IIOA News

Databases

The Ministry of Education and Science in Poland accepted about 85% of thesuggestions of experts and modified the overall score at Stage 3 accordingly. In thenext step the final version of the PJR was released in 2019.

The Industry and Competitiveness Group (GIC) of the Federal University of Riode Janeiro (IFRJ) publish through Passoni and Freitas (2021) an annual series of
Input-Output Tables (IOTs) estimative at current prices from 2000 to 2018 for
the Brazilian economy considering the System of National Accounts (SNA) 2010.
This series promotes the compatibility of the data from SNA 2000 and 2010.

Although the second release of PJL has not been announced so far (and most likely
will not be published before the 2022 evaluation of scientific disciplines in Poland
because of lack of time required for a thorough evaluation) slight modifications of
the journal rank were conducted in 2020 and 2021. These changes were mainly
based on including some new Polish journals (e.g. those that were accepted forinclusion in SCOPUS after the release of PJR in 2019) or increasing the score ofsome Polish journals (mainly in the field of humanities). Despite obvious
shortcomings and imperfections the PJR is doubtlessly one of the most importantand influential regulations in Polish scientific community, especially if compared toprevious algorithms of evaluating research in Poland that placed much moreemphasis on arbitral scoring.

Łukasz Lach, AGH University of Science and Technology in Kraków

The methodological changes do not allow data comparison from the previous
series officially released by the Brazilian Institute of Geographic and Statistics(IBGE). They use structural information from the previous IOT and Supply and
Use Tables (SUT) published (IBGE). The authors show that the methodology theyused, based on Grijó and Berni (2006), generates closer results to the official IOT
published by IBGE when compared to estimates obtained from Guilhoto andSesso Filho (2005; 2010) methodology.
More details can be seen at:https://www.ie.ufrj.br/images/IE/grupos/GIC/publica%C3%A7%C3%B5es/2020/
TD_IE_025_2020_ALVES-PASSONI_FREITAS.pdf
and the series can be downloaded at:https://www.ie.ufrj.br/images/IE/grupos/GIC/publica%C3%A7%C3%B5es/2020/
MIP_42_2000a2018_correntes.zip andhttps://www.ie.ufrj.br/images/IE/grupos/GIC/publica%C3%A7%C3%B5es/2020/
MIP_67_2010a2018_correntes.zip

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Awards and promotions by the IIOA members
Royal Decoration for Erik Dietzenbacher
In the last week of April, former IIOA President and former editor of
Economic Systems Research Erik Dietzenbacher was informed by the
Mayor of Groningen that he had been appointed Officer in the Orderof Orange-Nassau. Every year in the days preceding the birthday of
the Dutch king, a limited number of such royal decorations areawarded to citizens with special merits. In the praise for Erik, not only
his scientific achievements and his inspirational teaching werementioned, but also (among many other things) his dedication to theactivities of the International Input-Output Association.

A few days after the announcement, Erikwas invited to Groningen's townhall toreceive the associated "medal".

Congratulations Erik!

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Awards and promotions by the IIOA members
Asia-Pacific Prize and Ohira Masayoshi
Memorial Prize for Satoshi Inomata
Dr. Satoshi INOMATA, the IIOA
President and a chief senior researcherof the Institute of Developing
Economies (IDE-JETRO) has been
double-awarded two most prestigious
academic prizes in Japan for his book
Global Value Chains (2019,
Nihonkeizai-Shimbun Publishing) for
the Japanese academic year of April
2020-March 2021.
- The Asia-Pacific Prize (アジア太平洋賞) awarded by Mainichi Newspaper- The Ohira Masayoshi Memorial Prize(大平正芳記念賞) awarded by Ohira
Masayoshi Memorial Foundation
Congratulations Satoshi!

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Awards and promotions by the IIOA membersPrêmio BNDES de Economia for Patieene
Alves Passoni and Camila Unis Krepsky
Patieene Alves Passoni and Camila Unis Krepsky, have been awardedin the 38th edition of the Prêmio BNDES de Economia award, one of
the most important awards for dissertations and thesis in Brazil.

Both works can be found at the Economics Institute of the Federal
University of Rio de Janeiro website and the following links (Patieene's
thesis and Camila’s dissertation).
The nomination for the award can be found here, at the Brazilian
Development Bank (BNDES) website.

Patieene Alves Passoni won first place in the PhD thesis category withthe work entitled: "Deindustrialization and regressive specializationin the Brazilian economy between 2000 and 2014: a criticalassessment based on the input-output analysis". And Camila Unis
Krepsky, won second place in the Master dissertation category withthe work entitled: "Output Growth and Household Consumption in
Brazil from 2000 to 2016: a structural decomposition analysis".
Preliminary versions of both works were presented as papers
respectively at the 26th and 27th editions of the IIOA conference inJuiz de Fora and Glasgow.
Congratulations Patieene and Camila!

Patieene Alves Passoni and Camila Unis Krepsky
at the 26th IIOA conference in Juiz de Fora
(Patieene is on the left and Camila on the right).

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Published papers and books in Input-Output Analysis and related methods
Latest ESR articles
Economic Systems ResearchZhou, L. and Chen, Z.
Are CGE models reliable for disaster impact
analyses?.

Duan, Y., Ji, T. and Mei, D.
Tariff costs embodied in product prices: a dynamic
analysis from global value chain perspective.

This study investigates a fundamental issue ofcomputable
generalequilibrium(CGE)
modeling: are CGE models reliable formeasuring the economic consequence analysis
of disasters? We assess the outputs of CGE
analyses after controlling for various modelingfactors such as data, type of model, andmodeling mechanisms via a meta-analysis of
253 CGE simulations in 57 empirical studies.
Our study arrives at three major findings. First,
we confirm that resilience significantly reducesbusiness disruptions from disasters. Second,
results using either real-world or hypothetical
data tend to vary substantially by hazard type.
Third, results are quite sensitive to model
assumptions and modeling structure. Overall,
we suggest that future impact assessments ofdisasters should be conducted more cautiously
in terms of adopting appropriate data, models,and shock scenarios, in order to improve thevalidity of CGE modeling outcomes.

The present study examines a measure, theembodied tariff, which is defined as the sum of all
tariffs imposed on intermediate inputs at various
stages of productions. It captures the total tariffcosts in products in the context of the global value
chain. We estimate the embodied tariff for 44
economies and 56 sectors, decompose it by tariff
source, and also decompose its temporal changes
using structural decomposition analysis. The
embodied tariff is more than twice the size of the
traditional direct input tariff, indicating a nonnegligible value chain effect. This demonstrates anoverall declining pattern over time, which reflects
a dominating effect of decreasing customs tariffs
overincreasing
international
production
fragmentation. Since 2011, however, the decline
in international production fragmentation has also
decreased embodied tariffs. A country’s customs
tariff is sizably translated into the embodied tariffof its own products, creating a competitive
disadvantage for domestic producers.

Journal of the IIOA
Volume 33, Issue 1, 2021
Allan, G. J., Connolly, K. and McIntyre, S. G.
Developing an electricity satellite account (ELSA):
an application to Scotland, UK.
Within the system of national accounts the electricity
sector is typically reported as a single entry
representing generation, transmission, distribution
and trade. The ways in which these components
interact with the economy differ greatly, a feature
lost within the standard accounting framework. In
this paper we propose an Electricity Satellite Account(ELSA) approach to better understand the linkages
between the electricity sector and economy, with aparticular focus on generation technologies. In
developing this framework, we draw parallels with
Tourism Satellite Accounts (TSAs). To illustrate thepractical steps in constructing ELSAs, we develop an
ELSA for Scotland for 2012, and show how the ELSA
framework gives an improved understanding of theeconomic contribution of the electricity sector, whichis critical in improving the usefulness of suchaccounts for climate, energy, and economic policy.

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Moya-Martínez, P., Bermejo, F. and del PozoRubio, R.
Hard times for long-term care systems? Spillover
effects on the Spanish economy.
Since the end of the last century, demographic
aging has led to an increased demand for newsocial protection services. Universalizing these tomeet the needs of the most vulnerable requires
the design of policies that ensure thesustainability of the system. Consequently, theeconomic structure of a country and its
productive fabric are affected. Assessing theimpact of this growing demand is not an easytask, although extended input-output models
can help. With this aim, we determine thespillover effects of the demand shocks arisingfrom the increase in public spending allocated forthe implementation of the Spanish long-termcare system. The results reveal that suchspending proves efficient in sustaining 116,000
jobs, most of which are in social work activities,
entailing a large amount of direct but low-skilledemployment. In addition, 5,000 million euros are
generated in value added, including a fiscal
return of 1,400 million euros.

Aroche Reyes, Fidel
On growth regimes, structural change andinput coefficients.
The input-output (IO) model assumes that thetechnical coefficient matrix changes as an
economic system develops, following either of
two tendencies; one, the entries of the matrix
shrink, due to increased efficiency on the
production lines; two, they expand, while
productivity gains concentrate in the use offactors. Further, the economic structure grows
more complex, as industries become more
tightly(vertically)
integrated
andthedevelopment process evolves. Both phenomena
have seldom been analysed together, despite
the apparent connections they may have withthe evolution of economic structures and thedevelopment opportunities countries may face.
This paper intends to examine the implicationsof these tendencies for the evolution of
economic systems in regards to the dynamics
the growth process may adopt. Two indicators
are presented here useful to characterise such
dynamics, later tested on the Mexican IO data.

Miroudot, S. and Ye, M.
Decomposing value added in gross exports.
Several papers using intercountry input-output
tables have developed frameworks to decompose
value added in gross exports and to remove
potential double-counting in intermediate inputs.
But these papers rely on different definitions forthe domestic value added, foreign value addedand double-counting terms, depending inparticular on the perspective from which grossexports are decomposed (world level, country
level or bilateral level). At this stage, it is very
difficult for any user of value-added trade
statistics to know what is calculated and which
type of decomposition should be used. In thispaper, we provide a general framework that
relies on extraction matrices to unambiguously
and consistently define domestic and foreignvalue-added terms in the world, country andbilateral perspective. This framework allows us
to classify existing decompositions based on theperspective taken and their definition of doublecounting. We also indicate the most relevant
decompositions for different types of trade
analysis.

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Economic Systems Research
Journal of the IIOA
Latest articles (up to 6th of May)

Carlos Llano, Julián Pérez, Fatima El Khatabi &Federico Steinberg
Weaponized trade policy: the impact of US tariffs
on the European automobile sector.
Economic Systems Research.

Tsujimura, M. and Tsujimura, K.
Flow-of-funds structure of the U.S. economy 2001–
2018.
Economic Systems Research.

With trade tensions running high, the Trump
Administration is considering new tariffs onimported automobiles, and the main target would
be the European Union, traditionally America’s
closest ally. In this paper we combine
disaggregated models to estimate the impact ofthese tariffs worldwide, and especially on Spain.
First, a trade-policy simulation model computes
the potential effects worldwide. Then we plugthese into the World Input–Output Database,obtaining the inter-sectoral effects of the tariffs
on Europe and the rest of the world. Finally, we
insert these results into the Spanish interregional Input–Output Tables, obtaining final
effects for Spanish regions via their inter-sectoral
relations with the European Union and the rest of
the world. By our calculation, the new US auto
tariffs could end up destroying 10,400 jobs in
Spain alone and 567,000 jobs worldwide.
Moreover,
they
might
have
unexpectedconsequences, affecting, Spanish regions andsectors that just indirectly depend on theautomobile industry.

Great inventions and substantial productivity
growth of the Roaring Twenties brought
unprecedented prosperity to the United States.
After Black Thursday in the fall of 1929 however,the
U.S.
economiclandscapechangeddramatically. To ensure that the bitter experienceof the Great Depression does not recur, Wesley
Mitchell and Morris Copeland, the architects offlow-of-funds
analysis,urgedabetterunderstanding of the circulation of funds, themeans of payment. The new century has so far
brought us many technological innovations andnew ways of doing business. The objective of thepaper is to find out if and how well the funds havebeen flowing in the U.S. economy over the past
two decades, using the flow-of-funds matrix(payer-payee matrix) proposed by Tsujimura andTsujimura (2018). A flow of funds analysis of the
U.S. quantitative easing. The industrial revolutionof the new century does not seem to have enoughmomentum circulating funds, the lifeblood of theeconomy.

Mainar-Causapé, A. J., Philippidis, G. and SanjuánLópez, A. I.
Constructing an open access economy-wide
database for bioeconomy impact assessment in theEuropean Union member states.
Economic Systems Research.
The bioeconomy encompasses the extraction,
processing and transformation of renewablebiological resources and waste streams, connectedto activities as diverse as food, feed, energy andmanufacturing. Under the auspices of theEuropean Union’s ‘Green Deal' strategy, this broadcollective of sectors is promoted as a cornerstone
for achieving sustainable growth. Progress indeveloping ex-ante tools of economy-wide
modelling analysis to assess its performance is,however, hindered by a paucity of consistent andcomprehensive
data.
To
overcome
thisshortcoming, the construction steps for a new setof open access social accounting matrices (dubbed‘BioSAMs’) is described for a detailed andcomprehensive selection of traditional andcontemporary bio-based accounts for each of the
EU member states. To illustrate its potential, astructural analysis based on three different andcomplementary
methods(Rasmussen-Jones,
hypothetical extraction method and eigenvector)
is performed to classify bio-based sector wealthgenerating properties and to identify highperformance (‘key') sectors.
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Parys, W.
David Hawkins and the making of the HawkinsSimon conditions.
Economic Systems Research.
The Hawkins-Simon conditions, which arenecessary and sufficient for the viability of
input–output systems, are described in manyencyclopedias, textbooks and papers, but
always without historical details about thephilosopher David Hawkins. The rich literatureon the history of input–output economics has
neglected Hawkins, probably because he spent
only a few years among the economists. My
paper fills this gap. By using the relevantarchival material on Hawkins, Simon, andLeontief, I correct and expand some scarce
remarks on Hawkins by Simon and Samuelson.
I
discuss
Hawkins’s
threeremarkable
contributions to economics. First, Hawkins’s
dynamic input–output model in Econometrica in1948 scooped Leontief. Second, I show how
the correspondence between Hawkins andSimon created their famous joint note inEconometrica in 1949. Third, an overlooked
chapter in Hawkins’s 1964 book The Languageof Nature discussed the commodity values ofcommodities, generalizing Marx’s labour values
and the Technocrats's energy values.

Juan F. Fung, Jennifer F. Helgeson, David H. Webb,
Cheyney M. O'Fallon & Harvey Cutler
Does resilience yield dividends? Co-benefits ofinvesting in increased resilience in Cedar Rapids.
Economic Systems Research.
Cedar Rapids, IA, offers a unique case study inplanning for increased resilience. In 2008, Cedar
Rapids experienced severe flooding. Rather thansimply rebuilding, the city of Cedar Rapids began
to invest in a resilient flood control system and in
the revitalization of its Downtown neighborhood.
This paper develops a Computable General
Equilibrium (CGE) model for the regional economy
of Cedar Rapids to quantify ‘resilience dividends’:
net co-benefits of investing in increased resilience.
A resilience dividend includes benefits to thecommunity even if another disaster does notoccur. We build a CGE model of Cedar Rapids at
two different time periods: one in 2007, before theflooding, and one in 2015, after the flooding andinitial investment in resilience. We show that apositive economic shock to the economy results inlarger co-benefits for key economic indicators in2015 than in 2007. Our approach illustrates how
co-benefits are distributed throughout theeconomy.

Ciaschini, C. and Chelli, F. M.
Evaluating the impact of Violence Against Womenin the macroeconomic Input–Output framework.
Economic Systems Research.
Violence against women and girls (VAW&G) has
progressively become an emergency issue inmany European countries and a relevant topic ofpublic discussion. In this paper, we attempt toinsertthis
theme
withinamodel
formacroeconomic policy design and evaluation.
Special attention is devoted to the assessment ofdistortions in the allocation of public expenditure
generated by VAW&G, in terms of gains and losses
in aggregate total output. We adopt a
macroeconomic input–output approach by adding
to the framework an industry that produces careservices to victims of VAW&G. The resulting modelis integrated with the public expenditure
reallocations that emerge as a result of the
progressive elimination of violence. It is, thus, asimulation tool for determining total output gains
or losses that emerge from the reallocation of
public expenditures as VAW&G fades.

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Wang, Z., Zhang, Y., Niu, M. and Fan, Z.
How important is domestic and foreign demand
for China’s income growth by business function?.
Economic Systems Research.
This paper explores the contribution of domestic
and foreign demand to China’s income growthby business function. To this end, we extend asingle country input–output approach to a
global multi-country setting, and further
redefine the measure via forward linkages. We
also propose chaining structural decomposition
analysis to identify the role of domestic andforeign demand in functional income changes
over 1999–2011. Using the World Input–Output
Database combined with Labor Occupations
Database, we distinguish functional activities in
production, management, marketing and R&D.
This enables us to find that domestic andforeign final demands, especially the former,
jointly lead to China’s income growth bybusiness function. Dynamically, the generally
upward trends in China’s income hold in theaggregate as well as by industry and business
function. We also find that China’s income
growth is quite heterogeneous across industries
and business functions.

Maria Llop
Defining prices in an inter-regional SAM system.
Economic Systems Research.
The literature of inter-regional social accounting
matrices (SAM) focuses on quantity-oriented
models that determine the transmission of income
impacts. This paper develops a price version to
identify the channels of price transmission at theinter-regional (or inter-country) level. The method
proposed divides the total multiplier effects into
intra-regional price multipliers (i.e. the cost
impacts within a region), open loop inter-regional
price multipliers (i.e. the cost impacts from one
region on another by quantifying all the withinregion impacts), and closed loop inter-regional
price multipliers (i.e. the circular cost impacts
transiting through the accounts in the other region
and returning to the starting region). In addition,
the intra-regional multipliers are divided into theintra-account, the inter-account and the crossaccount(circular)
effects.
The
empirical
application, which uses a bi-regional SAM that
distinguishes the United States (USA) and China(CHN), highlights the importance of the withinregion interdependences for explaining priceimpacts.

Carvalho, T. S., Santiago, F. S. and Perobelli, F. S.
Demographic change in Brazil and its impacts on
CO2 emissions.
Economic Systems Research.
In recent years, the debate about demographic
changes and its impacts on the economy has
increased. The growth in the relative share ofelderly people in the age pyramid may occur inthe coming decades in many parts of the world,
and their effects on the composition of
consumption, notably on energy demand andemissions, are not yet known. This article
estimates the changes in the pattern ofconsumption in Brazil due to the changes
projected in the age pyramid in 2050 and theconsequences of these changes on CO2 emissions.
For this, projections will be made using an input–
output model for the Brazilian economy for theyear 2010 considering 67 productive sectors andsix age groups. The results suggest that emissions
grow less than proportionally to population growth
and that the participation of sectors such as fuels
and transport shows a small decrease in the
consumption vector for 2050.

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Jorge A. Garcia-Hernandez & Roy Brouwer
A multiregional input–output optimization
model to assess impacts of water supply
disruptions under climate change on the Great
Lakes economy.
Economic Systems Research.

Wei-Hong Hong, Hui-Chih Chai, Y.-H. Henry Chen,
John M. Reilly & Sergey Paltsev
Will using newer input–output data for generalequilibrium modeling provide a better estimate for
the CO2 mitigation cost?.
Economic Systems Research.

This paper presents a water-restricted multiregional input–output model to evaluate theeconomic impacts of water supply reductions in
the Canadian Great Lakes Basin (GLB), one of
the largest freshwater reservoirs in the world.
The proposed model, first of its kind applied to
the GLB, aims to minimize the impact of watersupply disruptions on the GLB-economy,
measured by the loss of GDP. A new flexible
economic optimization procedure is introduced,
capable of imposing resource constraints andensuring minimal supply levels for intermediate
and final consumption at the same time. The
model accounts for inter-regional trade between
different lake regions. The impacts of two
climate change scenarios on water security andthe economy are investigated, with and without
additional food and energy security restrictions.
The proposed economic optimization modelholds promise as a new tool for resourcerestricted Input–Output analyses.

We provide a critical evaluation about how
updating the input–output data of a computable
generation equilibrium model can affect policy
results, an assessment that is rarely done inexisting literature. Specifically, we explore how
datasets with different fossil energy cost sharesalter results of policy simulations that aim at
reducing CO2 emissions. We prove analyticallythat a sudden fossil fuel price surge, which
provides little time for adjustment through input
substitution, can lead to a higher CO2
mitigation cost. The finding is demonstrated
empirically in a full-scale economy-wide model
for a base year with lower fossil fuel prices,
contrasted with results from a base year whenfossil fuel prices spiked. We then propose an
adjustment to resolve the issues of using input–
output data that embed abrupt fossil fuel pricehikes.

Umed Temursho
On the Euro method.
Economic Systems Research.
This paper critically examines the Euro method
usage for the purposes of updating supply anduse tables (SUTs) and/or input–output tables. Its
known
restricted
applicability
to
only
unnecessarily aggregated and symmetric SUTs
(and not their underlying rectangular versions) isalready an issue of concern. However, bystudying analytically the nature of Euro's
adjustments of the SUT elements and empiricallyassessing some of its underlying assumptions,
including newly revealed ones, it is concluded
that the Euro method is a largely ad hoc
updating procedure. Its recently claimed
superiority over the generalized RAS approach(GRAS, or SUT-RAS) in the absence of industry
output is challenged. It is shown that applying
the standard GRAS with exogenously given
estimates of industry outputs under such
restricted data-availability environment still
outperforms the Euro method.

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José Francisco Cubells & Maria C. Latorre
Brexit deal done! A detailed micro- andmacroeconomic analysis of its fallout.
Economic Systems Research.

José Firmino de Sousa Filho, Gervásio Ferreirados Santos & Luiz Carlos de Santana Ribeiro
Structural changes in the Brazilian economy
1990–2015.
Economic Systems Research.

Andrea Bonfiglio, Silvia Coderoni, Roberto Esposti& Edoardo Baldoni
The role of rurality in determining the economywide impacts of a natural disaster.
Economic Systems Research.

We offer a rich set of macroeconomic andsectoral effects of Brexit in France, together
with macroeconomic ones for the UK, the rest of
the EU and the rest of the world. We explain theintuition for the impact on production and tradeacross the 21 sectors that underlie ourmacroeconomic estimations (national imports
and exports, output, GDP, welfare, wages andrental rate of capital). Our comprehensive
technique captures the direct and indirect
effects of Brexit on trade. Four types ofwithdrawal are analysed, including the finallyagreed between the EU and the UK on
December 2020. This will avoid tariffs, but othermedium size (non-tariff) barriers will emerge.
The UK, France and the rest of the EU will beharmed by Brexit, although asymmetrically.
While Brexit will substantially harm the UK
economy, the negative impact on France andthe rest of the EU will be limited and similar.

This paper analyses the structural changes in theBrazilian economy from 1990 to 2015 by applying
structural decomposition analysis (SDA). The
production structure of emerging economies is an
important field of research because it enables theassessment of sectoral policies and technologicalprogress to support sustained economic growthin the long-term. The investigation describedhere was conducted using input–output matrices
for a short and long-term analysis which enabled
us to verify the importance of twelve aggregate
sectors regarding changes in production, final
demand and technological coefficients. This topic
could be used for such analyses in any othercountry. The results indicate that the production
structure of Brazilian economy remains fragileand dependent on demand shocks for its growth.
Furthermore, manufacturing industry remains the
major sector capable of promoting structuralchanges in production.

Rural areas may be highly vulnerable to natural
disasters because of their lower economic
diversification and a higher incidence of sectorsthat may suffer from a larger impact produced bythese adverse events. In addition, because of theirtrade dependence, local effects can be transmitted
to neighbouring regions more diffusely soamplifying total impacts. This paper aims toquantify the economy-wide impacts generated by
the earthquake sequence that mostly hit amarkedly rural area of Central Italy in 2016–2017.
To this purpose, a non-linear programming model
based on a multi-regional IO table with a mixed
territorial scale is adopted. Results indicate thatsome negative effects are transmitted outside theseismic area and a few positive effects are also
produced. Moreover, they confirm that rural areas
are more vulnerable to disasters and that theeffects of disasters in these areas are more likely
to be transmitted to the neighbouring space.

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Newsletter
Number 48, May 2021Ángela García-Alaminos, Mateo Ortiz,
Guadalupe Arce & Jorge Zafrilla
Reassembling social defragmented
responsibilities: the indecent labour footprintof US multinationals overseas.
Economic Systems Research.
Multinational corporations (MNEs) have been at
the forefront of the geographical disintegrationof production chains in search of lower salaries,
among other reasons, which led to a global race
to the bottom in labour standards. Therefore,
significant amounts of indecent work are
currently embodied in MNEs’ global value
chains, compromising not only the brands’
corporative image but also the achievement of
the Sustainable Development Goals. In thiswork, we shed light on this matter by
estimating the indecent-work-conditions related
impacts linked to the foreign activities of MNEs
from the United States. Using a sociallyextended MRIO model that integrates threesocial indicators (forced labour, fatal andnonfatal occupational injuries), we found thatthese activities show increasing trends between
2009 and 2013 on indecent labour, contributing
with 1.1%–1.3% of the global cases. UnitedStates affiliates located in India, China andBrazil, show the highest ratios per unit of valueadded.

Tobias Emonts-Holley, Andrew Ross & Kim Swales
Estimating induced effects in IO impact analysis:
variation in the methods for calculating the Type II
Leontief multipliers.
Economic Systems Research.
Type II input–output (IO) multipliers are
frequently
usedfor
impactanalysis.
Unfortunately, there is no standard way to
calculate these. The fundamental issue is thatthese multiplier methods endogenise household
consumption but all have drawbacks because
the IO accounts are missing key information
required to consistently link household income
and consumption to domestic economic activity.
Using compatible regional and national data
sets, we evaluate the values for various IO TypeII multipliers to a benchmark value calculatedwith the aid of social accounting matrix data.
The results suggest that the variation in Type II
IO multiplier values generated by thesealternative methods is an empirically non-trivial
issue.

Bartlomiej Rokicki, Oliver Fritz, Jonathan M.
Horridge & Geoffrey J. D. Hewings
Survey-based versus algorithm-based multiregional input–output tables within the CGE
framework – the case of Austria.
Economic Systems Research.
Spatial CGE models rely on detailed multiregional
input–output(MRIO)
tables.
This
paper
compares two different approaches to compiling
MRIO tables for Austria – an algorithm-based
approach that regionalizes national input–output
tables (IOT) and generates trade estimates using
a predefined set of regional variables (i.e.
Horridge’s algorithm), and a hybrid approachthat uses as much regional and interregional
data as possible. We investigate whether weobserve differences in CGE simulation resultsthat use them. Results from an aggregate
simulation are surprisingly similar. So thealgorithmic approach is, in fact, effective inmaking an MRIO from a national IOT. But
noticeable differences appear at the sectorallevel. They seem mainly due to differences incalibration rather than in regionalization.

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Newsletter
Number 48, May 2021Óscar Dejuán, Ferran Portella-Carbó & Mateo
Ortiz
Economic and environmental impacts ofdecarbonisation through a hybrid MRIO
multiplier-accelerator model.
Economic Systems Research.
This
paper
analysestheimpactsofdecarbonisation in three energy-intensive
sectors/institutions (electricity generation, roadtransport, and household consumption) on four
economic and environmental variables (value
added, employment, energy consumption, andemissions). In our basic scenario, the EU is
supposed to complete the decarbonisation of
the selected sectors in 30 years, whereas in therest of the world these sectors will be 30%
decarbonised. We hypothesise that emissions
and employment will fall once renewablesources of energy replace fossil fuels. Yet, inthe meanwhile, massive investments areneeded to build the required infrastructure. To
compute the full impact, we apply a multiplieraccelerator model to a global multiregional
hybridinput–output
table
derivedfrom
EXIOBASE3. In the EU, such a decarbonisation
reduces yearly energy consumption, CO2
emissions, and employment by 22%, 19%, and
4%, respectively. Thus, additional measures arenecessary to avoid global warming and absorb
unemployment.

Shohei Tokito, Shigemi Kagawa & Tesshu Hanaka
Hypothetical extraction, betweenness centrality,
and supply chain complexity.
Economic Systems Research.
Two frameworks, hypothetical extraction andbetweenness centrality analysis, can be used to
identify environmentally important sectors incomplex supply chains. This study derives ananalytic expression for the relationship between
hypotheticalextraction
andbetweenness
centrality analysis. Second, using the Eora and
WIOD, this study analyzes the degree ofdifference in ‘important’ sectors identified byhypotheticalextraction
andbetweenness
centrality analysis. While the results obtainedby rank correlation yield similarities, bothmethodshaveadvantages.
This
study
demonstrates that estimating betweenness
centrality
ismeaningfulandlesscomputationally expensive, and can help us tounderstand the structural positions in the global
supplychain
network.
The
hypotheticalextraction indicators can be easily computed
using the betweenness centrality indicators’
mathematical relationship. We conclude that theimplementation of effective CO2-reduction
polices through greener global supply chain
engagement center around two key sectors,
chemical and metal products from China, andtheir higher betweenness centrality should be
strengthened.

Ana-Isabel Guerra, Laura Varela-Candamio &Jesús López-Rodríguez
Tax reforms in Spain: efficiency levels anddistributional patterns.
Economic Systems Research.
This paper approximates the efficiency levels of
the most relevant tax categories and theirdistributional patterns for a European country
considering Spain as an illustrative example. Thisis done computing the ‘marginal’ excess burdenof these taxes, taking into account the structureof the Spanish tax system before and after the
major tax reforms undertaken since 2010. In
doing so we use a static applied generalequilibrium model, which features heterogeneous
households classified according to their taxable
income. In addition, and in identical terms,
another alternative tax reform is evaluated: aflat value-added tax system and a reduction in
employers’ social security contributions. Our
results indicate that the alternative tax reform
would have slightly improved the degree of
efficiency of these taxes while implying a lower
negative impact on aggregate income. Regarding
distributive effects, we do not find significant
differences between the actual and thealternative tax policies.

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Number 48, May 2021

Radomír Mach, Milan Ščasný & Jan Weinzettel
The role of allocation of retail trade margins
across household segments on their carbon
footprint calculation.
Economic Systems Research.

Ignacio Cazcarro, Antonio F. Amores, Inaki Arto &Kurt Kratena
Linking multisectoral economic models andconsumption surveys for the European Union.
Economic Systems Research.

The homogeneity assumption, inherent to
input–output (IO) analysis, implies that every
euro spent within one product group is assigned
the same environmental burden. We address
this assumption applied to price conversion ofhousehold expenditures from purchasers’ tobasic prices when the carbon footprint ofconsumption is calculated for specific household
segments by linking the IO table and microlevel household consumption data. We performa sensitivity analysis of the different allocationsof the retail trade margin of two consumption
groups (Food and Goods) across household
expendituredeciles.
Whileadifferently
allocated retail trade margin influences the
carbon footprint of household segments, it does
not challenge the general finding thathouseholds with higher expenditures are
responsible for higher footprints. This finding
holds also for different emission intensities ofretail trade margins.

Multisectoral models usually have a single
representative household. However, morediversity of household types is needed toanalyse the effects of multiple phenomena (i.e.
ageing, gender inequality, distributional income
impact, etc.). Household consumption surveys’
microdata is a rich data source for these typesof analysis. However, feeding multisectoralmodels with this type of information is not
simple and recent studies show how evenslightly inaccurate procedures might result insignificantly biased results. This paper presents
the full procedure for feeding household
consumption microdata into macroeconomic
models and for the first time provides in asystematic way an estimation of the bridge
matrices needed to link European Union
Household Budget Surveys’ microdata with the
mostpopularmulti-regional
input–output
frameworks (e.g. Eurostat, WIOD, EORA,
OECD).

Hong-Dian Jiang, Mei-Mei Xue, Kang-Yin Dong &Qiao-Mei Liang
How will natural gas market reforms affectcarbon marginal abatement costs? Evidence
from China.
Economic Systems Research.
Having recognised the significant role of natural
gas in reducing carbon abatement costs, China is
rapidly promoting its growth. However, obvious
distortions exist in China’s natural gas market,
and it is unclear how these may affect abatement
policies going forward. Therefore, to assess theeffects of energy market distortions on the
carbon marginal abatement costs (MACs) in
China, this study proposes a computable generalequilibrium model for China’s natural gas sector,
which considers the monopoly market structure,
price regulation, and import restrictions. Results
show that deregulation of gas prices will lead toan effective decrease in China’s MACs. China’s
MACs are insensitive to liberalisation of themarket monopoly or gas import restrictions.
When all three distortions are fully deregulated,
China’s MACs show an obvious upward trend.
Finally, this study uses China's carbon trading
policies as an example to propose policy
implications under different scenarios of natural
gas market reform.

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Newsletter
Number 48, May 2021Łukasz LachOn the plausibility of using linear programming
to trace important input–output coefficients inthe framework of tolerable limits.
Economic Systems Research.
Recent input–output (IO) literature offers
original proposals on using linear programming(LP) to make ‘tolerable limits’ approach suitable
for measuring the importance of IO coefficientsto an economy. In this paper, I focus on one ofsuch influential proposals presented in Tarancón
et al. [(2008). A revision of the tolerable limits
approach:searchingfortheimportantcoefficients. Economic Systems Research, 20,
75–95]. In the theoretical part of this paper, I
provide exact analytical solutions to the LP
problems formulated in Tarancón et al. The
main result proves that the classification of IO
coefficients with respect to their importance inthe sense of the LP-based indicators of
Tarancón et al. does not depend on thebenchmark welfare measure of interest. Thisfact, in turn, severely reduces practicalapplicability of the discussed LP-based approach
to tracing important IO coefficients.

Juan Manuel Valderas-Jaramillo, José ManuelRueda-Cantuche & Joerg Beutel
The Euro and SUT-RAS methods: some further
considerations.
Economic Systems Research.

Tesshu Hanaka, Keiichiro Kanemoto & Shigemi
KagawaMulti-perspective structural analysis of supply
chain networks.
Economic Systems Research.

The main objective of this paper is to revisit theEuro method in a critical and constructive way.
We have analysed some arguments against theEuro method published recently in the literature
as well as some other relevant aspects of the
SUT-Euro and SUT-RAS methods not covered
before. Although not being the Euro method
perfect, we believe that there is still space for
the
use
of
the
Euro
methodin
updating/regionalizing Supply and Use tables.

Determining the structural positions andcharacteristics of multi-role sectors is critical forunderstanding supply chain networks. Thus, inthis study, we developed an attribution analysis
framework to assess the structure of sectors
with multiple roles in a supply chain.
Subsequently, we applied the framework in acase study, where the top-ranking Japanese
sectors were identified for production-oriented,
betweenness-oriented,
andconsumptionoriented carbon dioxide emission scores.
Additionally, these attribution indicators were
utilized to identify/visualize the structural
positions of sectors. Using company-level data,
we also evaluated the structural positions ofJapanese companies in relation to their carbon
disclosure project (CDP) reporting practices.
The results demonstrate that a company's rolein the supply chain is unlikely to be related to
CDP reporting.

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Number 48, May 2021

Claudia V. Montanía & Sandy Dall’erba
Multi-dynamic interregional input-output shiftshare: model, theory and application.
Economic Systems Research.

Bernhard Michel & Caroline Hambÿe
Export-sustained employment: accounting forexporter-heterogeneity in input–output tables.
Economic Systems Research.

Shift-share decomposition has been extensively
used to identify the key drivers of sectoral andregional economic growth. Traditionally, shiftshare does not pay attention to any form ofinterregional
externalities
and
the
rare
exceptions define them based on geographicalproximity only. However, given the increasingrole of global value chains in economic growth,
this paper introduces the Multi-dynamic
interregional
input-output
shift-sharedecomposition in order to capture the dynamic
intersectoral relationships between a spatial
unit and any other unit it trades with. The
methodology is illustrated on 35 productive
sectors of 15 European Union countries over
1995–2006. The results show that the mostimportant driver of output growth in thesecountries are their sectoral linkages with other
European countries, followed by the domestic
sectoral linkages.

Exports matter for domestic employment inboth export-producing firms and upstream
suppliers. Their total effect can be captured
through an input–output-based indicator ofexport-sustained employment. However, as
industry classifications used in regular input–
output tables are based on product similarity,
they fail to account for within-industry
technological heterogeneity between exporters
and other firms, which may lead to a bias inresults for export-sustained employment. In
this paper, we describe the breakdown of
manufacturing industries into export-oriented
and domestic-oriented firms in Belgian input–
output tables and employment data based on
detailed firm-level data for industry totals andinput–output structures. Based on the resulting
export-heterogeneous tables, we find that
585,000 jobs or 13% of economy-wide
employment in Belgium is sustained bymanufacturing exports. This is overestimated by
4% with regular tables. Moreover, we identify
who contributes to and who gains from exports
for groups of firms rather than aggregatedindustries.

María T. Álvarez-Martínez, Salvador Barrios,
Diego d'Andria, Maria Gesualdo, Gaetan
Nicodeme & Jonathan Pycroft
How large is the corporate tax base erosion andprofit shifting? A general equilibrium approach.
Economic Systems Research.
The paper uses the computable generalequilibrium model CORTAX to analyse theextent of base erosion and profit shifting (BEPS)
in the EU, Japan and the US. Our approach
estimates the direct fiscal losses of BEPS andaccounts for the second round effects, inparticular on the cost of capital and corporate
investment. Our central estimates show that the
net corporate tax revenue losses in the EU are€36.0 billion per year (7.7% of CIT revenues),€24.0 billion in Japan and €100.8 billion in the
US (in both cases representing 10.7% ofcorporate tax revenues). Our estimates arecomparable in size to the global tax revenue
losses found using newly reported statistics on
foreign affiliates. Our macroeconomic results
suggest that eliminating profit shifting wouldslightly reduce investment and GDP and rise
corporate tax revenues, which would positively
affect welfare.

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Newsletter
Number 48, May 2021

Cristian Mardones & Claudio Brevis
Constructing a SAMEA to analyze energy andenvironmental policies in Chile.
Economic Systems Research.
In this study, a social accounting matrix withenvironmental accounts (SAMEA) for Chile is built
based
on
the
2016
input-output
tables,socioeconomic household survey, expenditure
survey, among other information sources. The
SAMEA has high disaggregation of the electricity
sector that is not currently available in national
accounts. Complementary information on theoperating costs of different electricity subsectors(thermoelectric, solar, wind, hydro, and biomass)from national and international studies are
obtained. Then, intersectoral indicators, accounting
multipliers, and simulations of shocks (subsidy on
the non-conventional renewable energy subsectors
and environmental taxes) are calculated. The main
findings of the study show that each electricity
subsector has different production technology andemission intensity. In consequence, energy andenvironmental policies simulated with intersectoralmodels that do not disaggregate the electricity
sector would produce significant biases in the
results.

See all latest articles in ESR,
volumes and issues

Highlights in journals
Jan OosterhavenMarkets behind interacting Leontief price andquantity models: Addendum to Chapter 5 ofRethinking Input-Output Analysis, A Spatial
Perspective.
For better understanding its economics, thisAddendum presents and discusses the supply anddemand curves, i.e. the markets, that are hidden
behind Fig. 5.2 from Rethinking IO Analysis. Thus,
it shows how this combination actually comprises
an extension of the basic – non-interacting –Leontief price and quantity models shown in Fig.
6.3a of Rethinking IO Analysis. Finally, it isdiscussed how this combination of these two dual
IO models may be further disaggregated andapplied in practice.

Nooraddin Sharify
Economic
resources’
allocation:A
goal
programming model integrated with a social
accounting matrix.
Soft Computing.
Countries generally aim to attain several different
or sometimes contrary goals. To this end, a Goal
Programming (GP) model integrated with an
Input–Output (I-O) one was implemented in a
number of previous studies. This paper attempts
to integrate a GP with a Social Accounting Matrix(SAM) framework to allocate economic resourcesof an economy among alternative sectors in orderto achieve a number of goals. To do so, although
the goals and limitations of regions are determinedwith respect to their situations, the supply anddemand for products of economic sectors, as wellas Gross Regional Products (GRP); employment fordifferent educational groups of human forces; andincome distribution inequality in addition to thepersonal income mean are formulated as the firstto third goals of the research, respectively. The
model has been examined by using the SAM Table
for the Golestan Province of Iran. The result of
implementing the model demonstrates that
integrating SAM instead of I-O with GP will
increase the capability of the integrated model.

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Newsletter
Number 48, May 2021

Sinead M. Boylan, Anne-Marie Thow, Elijah K.
Tyedmers, Arunima Malik, Janet Salem, Robyn
Alders, David Raubenheimer and Manfred Lenzen
Using Input-Output Analysis to Measure Healthy,
Sustainable Food Systems.
Frontiers in Sustainable Food Systems.
Our current food systems are hampering efforts tomeettheSustainable
Development
Goals.
Reshaping our food systems could have enormousco-benefits for our populations and planet.
However, decision makers and experts arequestioning whether it is possible to meetenvironmental,socialandeconomic
goals
simultaneously,or
whether
tradeoffs
arenecessary. There has been a call for thedevelopmentofbetter measurements
andindicators to help policymakers understand thebenefits and considerations for healthy andsustainable food systems. There is an urgent needto address the gaps in understanding of what asustainable food system means across varying
populations and geographies and how we canbetter measure these systems. Practice calls for aframework in which different aspects of food andnutrition security can be measured under identicalscope, where policy simulations which arrive at
multi-indicator outcomes are comparable, andwhere quantified trade-offs between different
sustainable development objectives are valid.

We introduce, and focus on one technique that
does allow such multi-indicator scope-consistentanalysis of food systems under a life-cycle
perspective: input-output analysis. We describe
input-output analysis, and its relevance andadvantages for measuring the sustainability offood systems, nutrition and diets, including
resilience and vulnerability. Using data from theglobal multi-regional input-output databases, wethen describe potential measures that are able toextend the current state of art into a morecomprehensive framework that has the potential
to support policy related to global initiatives suchas the Sustainable Development Goals.

Quanrun Chen, Xikang Chen, Jiansuo Pei, Cuihong
Yang & Kunfu Zhu
Estimating domestic content in China’s exports:
Accounting for a dual-trade regime.
Economic Modelling.
This paper identifies the heterogeneity issue as a
key challenge that is central to but not fully
addressed when measuring global value chains. To
resolve this issue, we propose an extended inputoutput model that is consistent with the theoreticalframework of heterogeneous firms. Empirically, we
use China as a prominent example of a country
that is engaged in both normal trade and theprocessing trade under a dual-trade regime, andwe synthesize methods for constructing China’s
extended input-output dataset for the period 1997
to 2015.

Our results show that when alternative generic
datasets are used, this is likely to result inoverestimating the domestic content in China’s
exports by as much as 44%, compared to a modelthat uses an extended database that incorporates
production heterogeneity, as does the one in thisstudy. This paper’s proposed methodology and richdataset may be useful to a wider range of
empirical applications.

Froemelt, A., Geschke, A. and Wiedmann, T.
Quantifying carbon flows in Switzerland: topdown meets bottom-up modelling.
Environmental Research Letters.
Modelling frameworks that aim to support
policymakers in deriving effective measures toreduce environmental impacts should provide
both: quantitative information on locally occurringconsumption patterns and production systems aswell as assessment of policy scenario outcomes.
Regionalised models that can deliver on theseaims are emerging, but are currently limited inresolution or have other restrictions. An advanced
model can be achieved by exploiting theadvantages and overcoming the limitations of topdown and bottom-up approaches. In this article,
we describe a highly detailed, spatially-resolved
modelling framework that quantifies local activities
andsimultaneously
analyses
system-wide
environmental and economic effects of plannedinterventions.
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Number 48, May 2021

We combined an existing, highly detailed bottomup model for Switzerland (focusing on individual
households) with a macro-economic top-down
approach by developing a new Swiss sub-national,
multi-region input-output model. We conducted
two case studies to demonstrate its abilities and tohighlight its usefulness. First, production-based
greenhouse gas emissions and consumption-basedcarbon footprints were computed for all Swisscantonsandregionaldifferences,interdependencies as well as embodied carbon
flows among regions were investigated. We findthat rural cantons have higher production-based
emissions per gross domestic product than more
urban cantons because of different economic
structures. In contrast, certain 'city-cantons' entail
highest consumption carbon footprints per
inhabitant due to high per-capita gross capitalformation. Furthermore, this case study discusses
theimportanceofprovidingregionalised
information on effects of measures along the
economic value chains. Second, a detailed
scenario assuming a realistic lifestyle change foran actual household and a thorough physicalretrofit of its home was set up. Regionalised
environmental and economic consequences along
the supply chains were evaluated. This case study
exemplifies how the modelling framework can beused to inform policymakers about expected
benefits and downsides of detailed scenarios andemphasises the importance of considering reboundeffects.

Marcel P. Timmer, Bart Los, Robert Stehrer &Gaaitzen J. de Vries
Supply Chain Fragmentation and the Global Trade
Elasticity: A New Accounting Framework.
IMF Economic Review.

Mariolis Theodore, Rodousakis Nikolaos andSoklis George
Inter-sectoral analysis of the Greek economy andthe COVID-19 multiplier effects.
European Politics and Society.

In this paper, we offer a new framework tomeasure cross-border supply chain fragmentationand its impact on the global trade elasticity.
Firstly,
we
introducethesupplychain
fragmentation ratio that sums the volume ofimports by all countries that participate in aparticular supply chain. We find that supply chain
fragmentation slowed down after 2010 for mostgoods, but not for services. We demonstrate theimportance of using trade and production data at
constant prices in measuring fragmentation
trends. Secondly, we quantify the impact offragmentation on the elasticity of trade to worldGDP, extending the framework of Bems et al. (AmEcon Rev Pap Proc 101(3):308–312, 2011). We
account for trade effects from fragmentation within
supply chains as well as asymmetric shocks to
final demand. We find that the declining pace offragmentation accounted for more than a third of
the decline in the global trade elasticity after 2010.

Using a multi-sector model, with joint-products
and heterogeneous labour, and data from the
Supply and Use Tables, this paper analyses theinter-sectoral structure of the Greek economy andestimates the COVID-19 multiplier effects on thiseconomy. It is found that the economy is heavily
dependent on imports of industrial commodities,
while
significant
multipliereffects
areconcentrated,primarily,inservicesand,secondarily,
intheprimary
production.
Furthermore, using these estimations and theavailable facts and figures about the COVID-19
impact on the elements of autonomous demand in
2020, we estimate a decrease in GDP in the rangeof 5.67–7.16 per cent, a decrease in the levels of
employment in the range of 5.32–7.20 per cent,and a decrease in total imports in the range of
10.40–15.53 per cent, respectively. The evaluationof the results of our analysis indicates that, on the
one hand, a short-term demand management
recovery programme could be implemented,
mainly, through the Public Sector and, secondarily,
the Tourism Sector, while, on the other hand, along-term growth-oriented policy should bedirected towards industrial production andimplement policies of import substitution.
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Number 48, May 2021

Christa D. Court, João-Pedro Ferreira, Geoffrey
J.D. Hewings & Michael L. Lahr
Accounting for global value chains: rising global
inequality in the wake of COVID-19?
International Review of Applied Economics

Finally, we show that economies with less-diverse
sets of industries are more vulnerable to suchglobal shocks. This study highlights the role ofvalue chains in analyzing the spatial spread of the
impacts and their contribution to amplifying world
imbalances.

Production processes depend on fragmented andinterdependent value chains; nowadays, a single
product often includes components produced indozens of countries. Many public health measures
being implemented to prevent the spread of
COVID-19 have dampened economic activity of‘non-essential’ sectors. The decreased production
affects other industries and countries that supply
parts, machinery, and services via global value
chains. Using the World Input-Output Database,
we show how a hypothetical decline in theworldwide consumption of a set of non-essential
sectors affects the global distribution of GDP and
employment. While richer countries consume
relatively more non-essential goods and services,
we find, by considering the interdependencies
among developed and developing economies, that
low-income countries are likely to suffer steeper
declines
in
their
GDP
and
employment.
Specifically, for each 1% decline in the demand for
non-essential products, the GINI index acrossnations is expected to rise by 0.3%. That is, global
inequality is likely to rise, contradicting someearlier findings.

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Number 48, May 2021

Job Positions

Executive Director of Bloustein School of Planning and Public Policy
Informatics Program and Non-Tenure Track Associate Professor orProfessor of Practice
The Bloustein School of Planning and Public Policy in Rutgers University,
New Brunswick, invites applications for the position of Executive Directorof Urban and Public Policy Analytics and Health Informatics Program. Thisis a full-time non-tenured Associate Professor or Professor of Practice
position in the School, for a period of three years, with the possibility of
renewal, subject to availability of funding. Applicants with significant
professional experience are encouraged to apply.
Our research centers are focused on transportation, workforce
development, the built and natural environments, urban and civic
informatics, survey research, and other areas. The school also has crosscutting research clusters on Upstream Determinants of Healthhttps://bloustein.rutgers.edu/centers/health-at-bloustein/ and the Futureof Cities, Society, Work and Health.
https://bloustein.rutgers.edu/centers/smart-civic-tech/

We seek to appoint a senior practitioner who will administer our current
programs in the Informatics area, including the Master of PublicInformatics, a Graduate Certificate in Urban and Public Informatics, and asoon-to-be offered online Master of Public Informatics, and to recruit
students into and grow those programs. We further expect that working
with other faculty, and instructional technology developers, thesuccessful candidate will establish new academic programs, including
online programs, certificate programs that are targeted to mid career
professionals, as well as programs in new areas of specialization. Basedon our Strategic Plan, expected areas of growth include Health Analytics
and Public Policy Analytics, and related areas.
The candidate will teach graduate-level courses on some of the following
topics: data science, machine learning, GIScience, and other analytics;
programming; optimization techniques; network analysis; domainspecific technology and tools-oriented courses; project management;
technology strategy; and support student projects and independent
learning. The ideal candidate will extend the school’s already extensive
government and industry engagement in the technology and analytics
space, and will establish student internship and research programs inthese areas.
More information in the Link

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Number 48, May 2021

The Social Accounting Corner
Questions: 1) How did you learn about Input-Output for the first time? Can you remember
your first thoughts? 2) Which was your first IIOA conference? Any memory that you want/canshare? 3) Recommend the readers of the newsletter a paper that surprised or inspired you.

Krista Danielle Yu – Full Professor,
School of Economics, De La Salle University(Philippines)
1) I learned about the input-output model during a mathematical economics
course as an application of matrix operations. I was fascinated with how useful
it was. This somehow made an impression on me as when the time came towork on my thesis, I revisited my notes and worked on its applications
towards disaster risk analysis.
2) The first IIOA conference I attended was in Alexandria, Virginia in 2011. I
was both very nervous and excited. My excitement came from seeing thatmost of the authors of papers that I have been reading are actually there and I
can actually interact with them. It was a wonderful opportunity to gather
insights and constructive comments from renowned experts. It was during thistime I met collaborators from across the globe.
3) One of the first interdisciplinary input-output articles that I have read was
Bruce Hannon’s The Structure of Ecosystems published in 1973. It was
surprising to see how IO can be applied to biology. Another surprising IO
reading is The Future Impact of Automation on Workers by Wassily Leontief
and Faye Duchin, which was published in 1986. I came across this work while
reading about the employment impact of artificial intelligence.

While these articles were published 30-40 years ago, I really find much inspiration on thewisdom they provide and how they can serve as foundations to solve current problems.

Michael L. Lahr - Distinguished Research
Professor, Bloustein School of Planning andPublic Policy, Rutgers University (USA)1) My story here undoubtedly is a bit different than that of others. I learned about
input-output (I-O) analysis via a required undergraduate course on regional
analysis. This course roughly followed the outline of Walter Isard’s book An
Introduction to Regional Science, which had just been released. And, within it,
input-output analysis was featured as Chapter 2. It was one among many tools
and theories presented, and its use in the class was designed to underline theimportance of industry concentration and diversity to multiplier effects and,hence, the development of regional economies.
Perhaps, interestingly given the heady nature of our department, we were notrequired to learn many names of researchers who were credited with theseworks. So, in this regard, Wassily Leontief and his inverse were equaled only byJohann Heinrich von Thünen’s rings, Walter Christaller’s conversion of them into
market areas of central places, and August Lösch’s completion of various tiers ofsuch areas into honeycomb formation. While taught, the origins of location
quotients and shift-share analysis were apparently credited to the public domain,
although our teacher, an economic historian, did give a shout out to Douglas
North. Note that Urban Analysis was another required course dealing with theinternal structure and social interactions within cities. My “thrill” in encountering
I-O for the first time was focused on my second use of a keypunch to cut holes
into designated places in the cards in which we would establish the numbers for41
the changes in final demand for our I-O exercise.

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Number 48, May 2021

The Social Accounting Corner

Ron never, ever made them. Ron’s lectures on I-O fundamentals were as clear as
the same sections of their book. We were the guinea pigs.

Questions: 1) How did you learn about Input-Output for the first time? Can you remember
your first thoughts? 2) Which was your first IIOA conference? Any memory that you want/canshare? 3) Recommend the readers of the newsletter a paper that surprised or inspired you.

2) My first IIOA conference was that in New York City in 1998, and for me it was apersonal disaster. I lived too close by. I say this because Rutgers University does
not reimburse for costs of meals or overnight stays to New York City, Philadelphia,or Atlantic City. Worse, my office was between my home and the conference
venue, which was Leontief’s research workplace—New York University. So, I had
to commute to NYU from my home and, as a result, typically missed the firstsession or two each day; I missed Wassily’s welcome. I even missed a fullconference day. Even more disappointingly, I literally missed the boat—the onethat took conference attendees to the conference junket to the Statute of Liberty.
I arrived 30 minutes late to the departure point after traveling two hours to getthere.

I have always been a poor, slow typist, a true detriment for anyone with aknack for computer programming/coding. Our first use of a keypunch in thatclass was to obtain results of a regression analysis of students in the class; we
controlled for height and gender. By the way, we had to walk our data cards—
wedged in behind a 10 cm stack of program cards—to a facility a few blocks
off campus where they’d installed the card reader of the university’s IBM
computer.
To tell the full story, I never took a graduate-level I-O course. But I did takeseparate undergraduate courses from both Ron Miller and Pete Blair.
Fortunately, I took Ron Miller’s I-O course as I was also taking a course in the
Mathematics Department in which we proved theorems in multivariate
calculus. I quickly gathered it helps to understand matrix algebra for
multivariate calculus, and the high school from which I graduated did not offer
such a course. By the way, Ron’s course was also required for theundergraduate major in regional science and all relevant calculations,
including calculating determinants and inverses, were done by hand and as
part of in-class tests. I took that course and two from Pete Blair as anundergrad, albeit one of Pete’s an upper-level course in Energy Policy &Management. I’d already taken a course in programming in a matrix-based
language (IBM’s APL) to develop a program against which I played poker. But
Pete’s approach to teaching programming for I-O analysis was particularly
fascinating. I still wonder if he made mistakes during his lectures on purpose,as he alluded at the time.

While this first was a disappointment, understand that by this point I was aseasoned conference goer, organizing and attending sessions at Regional Science
Association (RSA) Meetings since 1976. Via such venues, I’d met many of notable IO colleagues, like Zoe Ambargis, Bill, Beyeres, Phil Borque, Joe Cartright III, ,Geofftey J.D. Hewings, Jan Oosterhaven, Karen Polenske, Hank Robison, Adam
Rose, Jeffrey I. Round and Michael Sonis by this juncture. I’d even heard Wassily
Leontief speak in Pittsburgh in 1982. Besides my attendance at the New York City
conference and heavy involvement in the RSA somehow enabled me to be invited
to be program chair of the next IIOA conference in Macerata. Karen Polenske
undoubtedly deserves a shout out from me on this.

42Newsletter
Number 48, May 2021

The Social Accounting Corner
Questions: 1) How did you learn about Input-Output for the first time? Can you remember
your first thoughts? 2) Which was your first IIOA conference? Any memory that you want/canshare? 3) Recommend the readers of the newsletter a paper that surprised or inspired you.

3) This is tough for me. I am not a strictly an I-O-nick; plus, I thought about thefield unusually early in my “career”—long before I published. To be honest, I
learned a great deal by reading the work of my dissertation committee
members, three of whom I have not yet mentioned: Benjamin Stevens; Dick
Conway, Jr.; and Janusz Szyrmer. And I had access to Ron Miller’s unusually fulland well-organized file drawers of published papers, a number of which I
copied and fetched from the library. Also, I dare not fail to credit Walter Isard
who, in classes, related his Quaker traditions, environmental/ecologicalinterests, and insight into regional modelling, including I-O. He certainly
swayed my thoughts toward his. And if I didn’t mention Masahita Fujita, who I
believe has published just a single I-O related paper—one of his few pieces
with numbers in it, I’d surely be remiss. His tutelage, via three graduate
courses in urban and regional economic development, undoubtedly framedmuch what I have done in I-O.
To reply more squarely, I suppose the early collected work of Rod Jensen and
Guy West was what lit a fire in my I-O belly. The idea of figuring out how tobest build a set of regional accounts using secondary data was intriguing to me,
and their work appeared to provide a portal toward this end. Plus, Rod was anengaging Aussie, someone who anyone would love to work with as a postdoc
or colleague; Guy, who was also personable yet a bit more serene, had a moremathematical approach that I appreciated.

In this vein, I also should give a shout out to Erik Dietzenbacher and Eric Howe
(University of Saskatchewan), both of whom produced mathematical I-O workthat I really liked. In fact, if not for them, I likely would have abandoned I-O asa field of endeavour.
They were both about my age too, which counts for a lot when attending
conferences. Otherwise, I only had Randy Jackson to hang with, although he’s
proven to me on occasion that he can be more companion than one mightwish for (recalling an interview at The Ohio State University some time ago).
If asked to identify one paper I would have liked to have written myself, I
would have to say it is one by Masahiro Kuroda and Koji Numura entitled“Technological Change and Accumulated Capital: A Dynamic Decomposition ofJapan’s Growth.” I had the pleasure of copy-editing this piece for the 2004
volume in honour of Wassily Leontief. Via both static and dynamic
decomposition analysis, it examines an economy’s total productivity growth.
To do so, the authors interpolated values of capital investment and, hence,
accumulation. This enabled them to track, for example, how suchaccumulation of capital goods in machinery industries has enhanced
productivity in industries that use that machinery, like Japan’s auto industry.
The theory and the data work were by no means simple, but the implicationsof the work were policy-rich.

IIOA Newsletter Editor:
Andre Carrascal Incera newsletter@iioa.org
University of Oviedo, Spain

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