Toward Consistent Cross-Hauling Estimation for Input-Output Regionalization

Although the literature has provided steps in the right direction, conceptual shortcomings still exist in the cross-hauling adjustment methods that are currently being applied in the literature. This paper represents an attempt to 1) characterize the cross-hauling adjustment methods that exist in the literature; 2) identify the shortcomings that exist with the most widely applied method, CHARM; 3) provide an empirical analysis to tackle the notion of just how ubiquitous crosshauling is and the potential impact it has on input-output multiplier estimates; and 4) suggest directions for future conceptual and theoretical development that will lead to consistent cross-hauling measures for use.