Effects of sectoral aggregation on an input-output table

Abstract

The importance of the consequences of sectoral aggregation, from the perspective of input-output analysis is the foundation of this paper. This issue is addressed from two perspectives: firstly, the effects of aggregation on the amount of information contained in an input-output matrix, in this case the statistical theory of information is used (Theil, 1957). Moreover, the changes experienced by the output multipliers due to different sectoral aggregations are analyzed. In this sense we have considered various proposals as the hypothetical extraction (Dietzenbacher and Van der Linden, 1997) and Pure Linkage (Sonis and others, 1995). The theoretical results derived from this study will be applied to the Input-Output Table for Asturias (2010). We have also considered different standard aggregations as NACE or CIIU, among others.