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GTAP Resource #1049

"USAGE-ITC: Empirical Foundations"
by Johnson, Kyle, Edward J. Balistreri, Christine Mcdaniel, Peter Dixon, Daina McDonald and Maureen Rimmer


Abstract
This paper describes the data supporting the USAGE-ITC model. Principal data components include a highly detailed input-output matrix derived from US Commerce Department data, a time series of somewhat more aggregated input-output data from the US Department of Labor, and trade and macro-economic data from various sources. In addition, regional production and inter-regional trade data (at the State level) are being added, as are data on occupational employment and final demand by different types of households. Making the model and data fit together required solutions to several interesting problems.

Every 5 years the Commerce Department prepares a benchmark input-output table for the United States at a highly detailed level, with 498 industry/commodity sectors, or more precisely 483 commodities produced by 498 industries. Our project makes use of the 1992 table, the most recently available at the time we started. Like many models, the USAGE model expects data on use (absorption) of both domestic and imported goods across downstream or ¡§using¡¨ sectors. And, like many data sets, the US input-output tables do not contain such data for imported commodities, so that usage of imported commodities had to be allocated among sectors. Other problems involved isolating indirect taxes from the transaction data, and accounting for payment to self-employed labor and factors of production used in government services.

The Labor Department produces annual input-output tables at a more aggregated (192-sector) level, mainly by a process of updating and backdating the Commerce Department benchmark table using national accounting data on the growth of production, trade, final demand, and value added in each of the 192 sectors. These annual tables are available for the years 1983 to 1998, providing a time series of industry data and the ability to introduce a data-based dynamic dimension to the USAGE model. The data and the dynamic structure of the model also form a rich platform for the historical analysis of trends in sectoral behavior. An early product of the data collection and collation efforts is a set of brief historical descriptions of trends in US industry production and trade.

Additional to and inter-dependent with the data components of the model is the set of parameters which condition the model¡¦s treatment of the data. ITC staff and Monash are compiling and in some cases re-estimating the array of elasticities and other behavioral parameters included in the model. The paper discusses the methods and findings of these efforts.



Resource Details (Export Citation) GTAP Keywords
Category: 2002 Conference Paper
Status: Published
By/In: Presented at the 5th Annual Conference on Global Economic Analysis, Taipei, Taiwan
Date: 2002
Version:
Created: Johnson, K. (4/30/2002)
Updated: Bacou, M. (6/20/2002)
Visits: 2,957
- Calibration and parameter estimation


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