Commodity Flow Method

From Open Risk Manual

Definition

Commodity Flow Method. A technique used to estimate purchases of an item by intermediate or final users when primary data are not available.

The method generally begins with an estimate of the total supply of an item available for domestic uses; it then either attributes a fixed percentage of supply to an intermediate or final user, or it adjusts for other purchases and attributes the residual to intermediate or final users. Commodity-flow estimates are always calculated in basic prices.[1]

References

  1. Concepts and Methods of the US Input-Output Accounts. K.J.Horowitz, M.A.Planting, 2009