Disaggregating Input-Output Models

This Technical Document describes the steps to disaggregate an industry sector in an I-O table using Python. A disaggregation method that based on weight factors is used in this document. The calculation has three parts. The first part is to calculate the disaggregated input matrix DIM, which represents all the input from common sectors into the new sectors. The second part is to calculate the disaggregated output matrix DOM, which represents all possible output weights of new sectors into common sectors. The last part is to calculate the intra matrix DINM, which represents the allocation of intra-industry sales in the disaggregated sectors. This document states the problem and introduces the calculation method of the paper by Wolsky (1984), then follows with an example based on the data of the paper by Linder et al. (2013).