Abstract

The compilation of the information required to construct survey-based input-output (I-O) tables consumes resources and time to statistical agencies. Consequently, a number of non-survey techniques have been developed in the last decades to estimate I-O tables. These techniques usually depart from observable information on the row and column margins, and then the cells of the matrix are adjusted using as a priori information a matrix from a past period (updating) or an I-O table from the same time period (regionalization). This paper proposes the use of a composite cross-entropy approach that allows for introducing both types of a priori information. The suggested methodology is suitable to be applied only to matrices with semi-positive interior cells and margins. Numerical simulations and an empirical application are carried out, where an I-O table for the Euro Area is estimated with this method and the result is compared with the traditional projection techniques.