WP18 2002/07 "Comparing Regional Structural Change: An Application of Econometric Input-Output Models"

Efforts in modelling regional economies within Austria in the course of the last three years have resulted in the development of two comparable econometric Input-Output models. While the first model for the state of Styria has already been applied empirically in policy analysis, the development of the second model for the state of Upper Austria was finished only recently. Viewed together the two models offer various opportunities to compare the economic structure of the underlying regions.
The paper aims at presenting the structure of these models and discusses their capabilities and main features in more detail, such as the endogenous change of the underlying input-output coefficients. Preliminary empirical results from applying the models to analyse structural changes in the regional economies are presented.