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The main objective of this paper is to revisit the Euro method in a critical and constructive way.Wehave analysed some arguments against the Euro method published recently in the literature as well as some other relevant aspects of the SUT-Euro and SUT-RAS methods not covered before. Although not being the Euro method perfect, we believe that there is still space for the use of the Euro method in updating/regionalizing Supply and Use tables.
The main objective of this paper is to revisit Temursho’s (2020) article “On the Euro method” in a critical and constructive way. We have praised part of his work and at the same time, we have analysed some of his arguments against the Euro method and against the work published by Valderas-Jaramillo et al. (2019). Moreover, we have analysed some other relevant aspects of the SUT-Euro and SUT-RAS methods not covered in Temursho (2020). Temursho (2020) seems to conclude that no one should use the Euro method again because of its limitations and drawbacks. However, although not being the Euro method perfect, we are afraid that there is still space for the use of the Euro method in updating/regionalizing supply and use tables.
We have introduced in this paper new variants of two methods for projecting Supply and Use Tables that are based on a distance minimisation approach (SUT-RAS) and the Leontief model (SUT-EURO). We have also compared them under similar and comparable exogenous information, i.e.: with and without exogenous industry output, and with explicit consideration of taxes less subsidies on products. We have conducted an empirical assessment of all of these methods against a set of annual tables between 2000 and 2005 for Austria, Belgium, Spain and Italy. From the empirical assessment, we obtained three main conclusions: (a) the use of extra information (i.e. industry output) generally improves projected estimates in both methods; (b) whenever industry output is available, the SUT-RAS method should be used and otherwise the SUT-EURO should be used instead; and (c) the total industry output is best estimated by the SUT-EURO method when this is not available.