RT Journal Article
T1 An Examination of Alternative LQ-Based Approaches to Computing Regional Input–Output Coefficients
A1 Flegg, Anthony T.
A1 Pereira López, Xesús
A1 Sánchez Chóez, Napoleón Guillermo
A1 Torre Cuevas, Fernando de la
A1 Tohmo, Timo
K1 Regional input–output tables
K1 Non-survey methods
K1 FLQ
K1 2D-LQ
K1 HTLQ
K1 SFLQ
AB In this paper, we examine alternative methods of computing regional input–output (IO) coefficients, with an emphasis on their relative accuracy and the complexity of the computations required. Our focus is on the well-known FLQ (Flegg’s location quotient) approach. Although the FLQ formula often yields satisfactory results, the need to specify values of the unknown parameter δ in this formula presents an obstacle to its implementation. After examining the FLQ’s conceptual foundations, we develop a possible new approach that obviates the use of this parameter. Instead, the new formula, the hyperbolic tangent LQ or HTLQ, incorporates an alternative proxy for regional self-sufficiency in terms of a new parameter  . We argue that, in most cases, it would be reasonable to set = 0.5 . We test our proposal using the 2005 and 2015 Korean survey-based interregional IO datasets and contrast our estimates with both survey-based values and the results from several other techniques. The results suggest that the new formula can yield more accurate estimates of regional IO coeff icients and multipliers, and in a more straightforward way, than is possible with the traditional FLQ.
PB Springer
YR 2025
FD 2025-03-29
LK https://hdl.handle.net/10347/42351
UL https://hdl.handle.net/10347/42351
LA eng
NO Flegg, A.T., Pereira-López, X., Sánchez-Chóez, N. et al. An Examination of Alternative LQ-Based Approaches to Computing Regional Input–Output Coefficients. Comput Econ (2025). https://doi.org/10.1007/s10614-025-10923-2
NO Fernando de la Torre Cuevas acknowledges support from the programme for postdoctoral research funded by the Xunta de Galicia [Grant Number: ED481B].
DS Minerva
RD 4 may 2026