Aggregation in Input–Output Tables: How to Select the Best Cluster Linkage

Abstract

In this paper we try to give a solution to the aggregation problem on working with Input–Output tables. First of all we verify the degree of similarity among the production functions of the industries which aggregate in each sector. Secondly, once we have established the aggregation by using different cluster analysis, we set a number of conditions required to choose the proper linkage method that allows us to characterize the process of aggregation (weighted or unweighted) of the input–output table.