Application of the distributive commodity balance method approach to regional disaggregation : the case of Penrith LGA

The paper discusses the derivation of the hybrid method of state and sub-state Input-Output table that closely follows the Distributive Commodity Balance Method (DCB) process while adapting some aspects from the Generation of Regional Input-Output Tables (GRIT). The paper also proposes a new data adjustment method to compute for location quotients. Unlike previous studies, this study uses effective full time (EFT) employment data to calculate the cross-industry location quotients. The use of EFT data within the DCB method negates the need for productivity adjustments such as those utilised within the GRIT method, and more accurately reflects industry employment characteristics for the DCB method. A proposed hybrid Input-Output Regional Output table is derived for the Penrith LGA and is used in the analysis of this paper.