AVIONIC (Variantial Input/Output Analysis, National Imported and Content): The Input/Output Model of National Accounts

This document presents the AVIONIC model (Variantial Input/Output National Analysis Imported and Content) developed at the national accounts department of INSEE. The model is based on French symmetric input-output tables, in order to propose three types of modeling: the estimation of the amounts of imports or value added generated by a component of the final demand (modeling in content of the final demand); the effect on production and imports of an exogenous variation on French final demand (modeling of a variation in final demand); and finally, the effect on the price of production of an exogenous variation on the price of inputs (modeling of price variation). The model is applicable at a detailed level of the nomenclature (level G, 138 products). Its price modeling is quite innovative because it includes price transmission coefficients that reflect the fact that the spread of a price increase depends on the behavior of the companies in each branch. The model also allows to consider extensions by mobilizing various data (employment data, materials...). Finally, the model adapts to international databases developed recently at the OECD (TiVA) or at Eurostat (Figaro), which rely on inter-country TES.