Extension of Almon Procedure to Estimate Industry-by-Industry Input-Output Table

One of the main problems of the fixed industry sales structure assumption to derive industry-by-industry input-output (IO) table is that it generates negative entries. In this paper, we extend Almon procedure to estimate industry type IO tables to avoid the negative flows. To validate the method, we compare the estimated tables based on our extended Almon procedure not only against the estimations based on traditional method in removing the negative entries, but also against the actual table. The comparisons show that our method yields more accurate estimations than traditional method.