Does It Make Sense to Apply the Static Open Input–Output Model for Imputation and Structural Decomposition?

Abstract

This paper aims to stimulate discussion on the question concerning whether input–output (10) analysts should go on applying the static open 10 model in times when data supply and computer capacity allow us to switch to semi-closed 10 models, which are rated as comparative improvements. It is argued that the most frequent of the open 10 model's applications, i.e. imputations and structural decompositions, with a switch to a semi-closed model, lose the properties which make them so attractive: imputations no longer are straightforward assignments of production and primary inputs to the components of total final demand; structural decomposition no longer is an additive assignment of changes of production and primary inputs to sources of structural change. In the author's opinion, imputations and structural decompositions on the basis of the open 10 model should be abandoned.