The Simultaneous Compilation
of Current Price and
Deflated Input-Output Tables
S. DE BOER and G. BROESTERHUIZEN
This chapter discusses a number of aspects of the procedure by which input-output tables are compiled in the Netherlands. These tables are compiled annually and are fully integrated in the System of National Accounts. A few years ago the method of compiling the input-output tables underwent a revision that, in our opinion, led to great improvement. The most significant improvement is that during the entire statistical process, from the processing and analysis of the basic data up to and including the balancing of the input-output tables, current-price data and deflated data are obtained simultaneously and in consistency with each other. We believe that this innovation may be of interest to other countries that currently compile input- output tables or wish to do so in the future, because many countries still--as the Netherlands used to do--first compile data in current prices and afterward calculate data in constant prices and changes in volume and prices, often on a higher level of aggregation. This means that an important opportunity for analysis of the interrelations between various kinds of data, and thus for better estimates, is used little or not at all.
In cases where input-output tables are drawn up periodically, the comparability in time of the estimates is an important requirement. For an extensive discussion on this matter the reader is referred to Al and Broesterhuizen ( 1985). Plausibility checks of observed changes between two periods can be carried out more easily and more meaningfully if the change in value is split into a volume change and a price change. In addition, with the informational aspect of economic statistics in mind, it is also important that there be complete consistency between deflated input-output tables and the tables with volume and price indices. This can be achieved by compiling both current-price data and deflated data simultaneously. Figure 5.1 shows part of the series of tables that then become available in the course of time.
In the Netherlands, deflated data pertaining to a period t are always expressed in prices of the period t - 1. In this way the weighting schemes that are used to combine detailed indices to define changes at a higher aggregation level remain up to date. In this process the volume changes are combined using Laspeyres' formula and the price