Construction of input-output tables and multipliers
An Input-Output table (IOT) is a matrix representing supply-use balancing of goods and services using a product-by-product or industry-by-industry categorization of output. It contains the complete set of transactions of intermediate consumption and final uses in an economy for a particular financial year. It represents production and consumption linkages between sectors, institutions, and the rest of the world. The Supply-Use Tables (SUTs) are matrices describing the flow of goods and services produced and consumed in an economy. They are the core of the IOT framework and form the basis of their construction. The IOTs are used for multiplier analysis and construction of social accounting matrices and CGE models. This framework has wide application in macro-economic policy analysis both, as a tool and as sources of data.
The present endeavour aims to construct IOTs for 2016-17, 2017-18, and 2018-19 using SUTs of the respective years sourced from the Central Statistical Office, Government of India. The United Nations framework provides various models for the construction of IOTs based on different assumptions relative to the usage of either fixed technology or fixed sales. Besides constructing IOTs, we have also estimated a set of multipliers which are useful to understand the structure of the economy, differences arising out of alternative models of construction, and can be interpreted as macroeconomic outcomes of applied exogenous shocks. Given the wide application of IOTs and multipliers in policy research, this paper may be mostly used as a data source by researchers and policymakers.
(Jointly with Prof. Basanta K. Pradhan & Dr. Akhilesh K. Sharma )