Cole (1989, 1997, 1999) advocates the introduction of expenditure lags and the fullest possible closure of single-region input-output models. Jackson et al. (1997, 1999) claim that closing also with regard to the Rest-of-the-World leads to inconsistencies and zero exogenous demand, which makes...

This paper develops a consistent framework to detect regional clusters of interrelated economic activity, and to evaluate both the regional and the national economic significance of individual sectors and regions. By using bi-regional input-output data it appears to be possible to distinguish...