Input-output
How are production, imports, consumption, investment and exports linked in the Danish economy? Input-output tables show connections between industries, imports and final use, and they are used, among other things, for analyses of direct and indirect effects on production, employment, imports and climate footprint.
Explainer on…
Supply and use show where goods and services come from, and what they are used for. Supply consists of Danish production and imports, while use consists of consumption in production, private and public consumption, investment and exports. For each good and service, supply and use must be in balance.
Input-output tables show the links between production, imports and uses in the economy. They show, for example, how different industries both supply to and purchase from each other, and how production is delivered to consumption, investment and exports. In this sense, they provide a detailed map of the economy's internal flows. The tables can be used to set up an input-output model, which can calculate how changes in consumption, investment or exports affect production, imports and employment.
A multiplier shows the calculated effect of a change in demand. It can, for example, show how much production, imports or employment follows from DKK 1 million extra exports, consumption or investment. Multipliers include both the direct effect in the industries that are first affected and the indirect effects among their subcontractors. A multiplier is a coefficient that one can multiply by the shock to demand in an industry for which one wants to know the consequences.
Growth contributions show how much different parts of demand contribute to economic growth. This can, for example, be contributions from private consumption, public consumption, investment and exports. By means of an input-output model, growth contributions can be corrected for their import content, so that they only show the demand components' contribution to Danish value added.
Selected statistics on Input-output
Supply of goods and services
The main sources for compiling supply and use tables in current prices are the following:
- Accounts Statistics for Non-Agricultural Private Sector (SBS)
- Sales by manufacturing industries (PRODCOM)
- General enterprise statistics
- Manufacturers' Purchases of Goods and Services
- Accounts for public corporations
- Economic Accounts for Agriculture
- Government finance statistics
- Financial industries and FISIM compiled on a NA basis
- Accounts statistics for non-profit institutions serving households (NPISH)
- Energy accounts
- Balance of payments and external trade statistics
- Household budget survey
The main sources for the compilation of supply and use tables in previous year prices are:
- Producer price indices for goods and services
- Producer price indices for construction
- Construction cost indices
- Consumer price indices and net price indices (consumer price indices excluding taxes)
- Price indices for agricultural sales
- Wage indices
- Unit price indices from import and export statistics
- Volume indicators: Energy supply and use, transportation, final Individual consumption expenditure of government
The balancing process of the SUTs serves as a central control of the quality and liability of the data. The compilation of SUTs is not solely to provide a reliable base for IOT, but also to provide a confrontation between estimates from different sources at a very detailed level. See also 18.4 data validation.
The input-output table is almost entirely based on the SUT's. The only exception is the the elements of Gross Value Added; Other taxes on production, Compensation of employees and Gross surplus and mixed income that comes from other sources in the national accounts.
Use of goods and services
Data sources include:
Administrative data, accounting statements, tax data, statistical surveys of businesses and households, trade statistics on goods and services, balance of payments information and energy accounts.
For an overview of sources on industry level see Branchefordelt kildeoversigt (In Danish).
Employment multiplier for housing investment
The source of this statistics is entirely the Input-output tables for Denmark. A description of these sources can be found in
Import-adjusted growth contribution
The main sources for compiling supply and use tables in current prices are the following:
- Accounts Statistics for Non-Agricultural Private Sector (SBS)
- Sales by manufacturing industries (PRODCOM)
- General enterprise statistics
- Manufacturers' Purchases of Goods and Services
- Accounts for public corporations
- Economic Accounts for Agriculture
- Government finance statistics
- Financial industries and FISIM compiled on a NA basis
- Accounts statistics for non-profit institutions serving households (NPISH)
- Energy accounts
- Balance of payments and external trade statistics
- Household budget survey
The main sources for the compilation of supply and use tables in previous year prices are:
- Producer price indices for goods and services
- Producer price indices for construction
- Construction cost indices
- Consumer price indices and net price indices (consumer price indices excluding taxes)
- Price indices for agricultural sales
- Wage indices
- Unit price indices from import and export statistics
- Volume indicators: Energy supply and use, transportation, final Individual consumption expenditure of government
The balancing process of the SUTs serves as a central control of the quality and liability of the data. The compilation of SUTs is not solely to provide a reliable base for IOT, but also to provide a confrontation between estimates from different sources at a very detailed level. See also 18.4 data validation.
The input-output table is almost entirely based on the SUT's. The only exception is the the elements of Gross Value Added; Other taxes on production, Compensation of employees and Gross surplus and mixed income that comes from other sources in the national accounts.
On the statistics – documentation, sources and method
See the documentation of statistics to learn more:
Economic multipliers measure the effect on e.g. production, income or employment at a detailed industry level, following a 1 million DKK "shock" to final use in an industry or in a final use category. Multipliers are not statistics in the traditional sense but may be termed more correctly as model calculations. As it is not entirely uncomplicated to calculate multipliers, a collection of the most used multipliers are made available for download this way. The statistics is a resume - now in electronic form - of the publication Danish input-output tables and analyses, that was published annually in a period up until 2011.
Employment and wages in national accounts shed light on labor market developments in a way that makes it possible to compare labor market developments with developments in, for example, GDP, production, and value added, as measured in national accounts.
Supply and use tables are the cornerstone of the Danish national accounts. Here, data for the circulation of goods and services, between Denmark and abroad, enterprises and final consumption are organized in a way that enables full balancing. A number of national accounts variables, including GDP, are published from here. The tables are used to compile input-output tables, which detail the relationships between production, imports and uses in the economy. Conversion to an input-output model enables calculations of multiplier effects, which are indirect relationships in the economy.