Supply and use tables (SUTs) lay out a detailed picture of the entire economy, providing an overview of the production process and use of commodities. The governmental agencies produce these mainly at the national level to derive components related to the calculation of the gross domestic product (GDP). The national SUTs, however, do not capture the heterogeneity of regions within a single country. The regional SUTs, on the other hand, are difficult and costly to compile.
In the absence of regularly compiled regional SUTs, analysts typically resort to models based on mechanically updated tables with less extensive data requirements. However, the methods currently available in the literature that
make the best use of available data do not guarantee a balanced structure of the output. Building on the latest advancements in adopting multiregional generalized RAS, this paper proposes a modification to the structure of the base matrix that guarantees the supply-use accounting balance as well as the identity of GDP by income and GDP by expenditure at the regional level in the output matrix. As a result, the procedure allows for efficient production of regional SUTs appropriate for calculating multiplier effects.