Abstract

The greatest limitation for carrying out intersectoral studies at the regional level is the lack of regional input-output tables. This study compares various indirect methods to estimate regional output multipliers in 15 regions of Chile through Monte Carlo simulation. The augmented Flegg location quotient (AFLQ) method (delta =0.5) is chosen since it presents the best behaviour to estimate regional input coefficients and output multipliers. However, the value of delta is sensitive to the number of regions and/or sectors and to the use of simulated or real sectoral gross domestic product (GDP) in each region. So, it is recommended that when it is possible, a simulation of Monte Carlo simulation be carried out to select this parameter in each country and not simply adopt values extracted from the literature.