Construction, stability and predictability of an input-output time-series for Australia

Abstract

This paper documents the development of a time series of Australian input2output tables. It describes the construction techniques employed in order to overcome the major issues encountered. Environmentally important processes were delineated using a range of detailed commodity data, thus expanding the original tables from roughly 100 industries into a temporally consistent 344 industries. Data confidentiality and inconsistency were overcome using an iterative constrained optimisation method called KRAS 2 a recent modification of RAS (Lenzen et al. 2006; 2007; 2009). The article concludes by analysing the stability of input2output coefficients over time similar to work in Dietzenbacher and Hoen (2006). The issue of stability of coefficients and multipliers was investigated under the Leontief and Ghosh models of supply/demand. Finally, the predictability of the models was examined under updated final demand or primary inputs and over varying time scales. © 2011 The International Input-Output Association.