Estimation of regional input coefficients and output multipliers for the regions of Chile

The greatest limitation for carrying out intersectoral studies at the regional level is the lack of regional input-output tables. This study compares various indirect methods to estimate regional output multipliers in 15 regions of Chile through Monte Carlo simulation. The augmented Flegg location quotient (AFLQ) method (delta =0.5) is chosen since it presents the best behaviour to estimate regional input coefficients and output multipliers. However, the value of delta is sensitive to the number of regions and/or sectors and to the use of simulated or real sectoral gross domestic product (GDP) in each region. So, it is recommended that when it is possible, a simulation of Monte Carlo simulation be carried out to select this parameter in each country and not simply adopt values extracted from the literature.