Our objective within the project is to construct a reliable input-output table, given
limited resources, i.e. no financial support by any third parties. We face two major challenges:
First, there does not exist any detailed information on inter-industry flows. Second, we have
to apply an estimation method, which is able to account for the varying quality of different
data sources.
Since there does not exist any detailed information on inter-industry flows, we include
information on input-output structures from other European countries. In order to select a specific
input-otuput vector for intermediate demand we compared the output mix of a Swiss industry with the
output mix of the same industry in other countries. Data for final demand, imports and value added
are given by Swiss statistics or can be compiled from Swiss statistical sources.
In order to account for the varying quality of the data sources, we apply a cross entropy
method in order to estimate a balanced input-output table given an unbalanced initial table. We
also control for the impact of alternative initial starting values on the estimation results.