The Information Approach to the Aggregation of Input-Output Tables

Part of the Advanced Studies in Theoretical and Applied Econometrics book series (ASTA, volume 25)


In a recent publication by the Czechoslovak Academy of Sciences, Jiri Skolka (1964) suggested information measures for the value of input-output tables as well as an information criterion for the aggregation of such tables.1 When sectors are combined to groups of sectors, a smaller input-output table is the result, the information value of which (to be defined appropriately) is always less than or equal to that of the original tables. The information reduction can be decomposed into various terms, some of which were given an economic interpretation by Skolka. The objective of the present paper is to present the information decomposition for the general case of n sectors aggregated to G groups of sectors, to apply the result to the annual postwar input-output tables of the Netherlands, to formulate and apply an approach for partial disaggregation, and to relate the information criterion to the classical input-output problem of predicting intermediate and primary demand. These respective goals will be pursued in sections 2 through 5, 6 and 7, 8, and 9.


Final Demand Aggregate Output Secondary Sector Group Flow Input Coefficient 
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  1. Schwartz, L.S.: 1963, Principles of Coding, Filtering, and Information Theory, Spartan Books, Baltimore, Maryland, and Cleaver-Hume Press, London, U.K.Google Scholar
  2. Skolka, J.: 1964, The Aggregation Problem in Input-Output Analysis, Czechoslovakian Academy of Sciences, Prague.Google Scholar
  3. Theil, H.: 1957, “Linear Aggregation in Input-Output Analysis,” Econometrica, 25, 111–122.CrossRefGoogle Scholar
  4. Tilanus, C.B.: 1964, “Thirteen Aggregated Input-Output Tables, The Netherlands 1948–1960,” Report 6423 of the Econometric Institute of the Netherlands School of Economics, Rotterdam.Google Scholar

Copyright information

© Springer Science+Business Media Dordrecht 1992

Authors and Affiliations

  1. 1.Netherlands School of EconomicsRotterdamThe Netherlands

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