Prorate

Definition

Prorate. A statistical technique for allocating a product to consuming industries and/or final uses that may be used in the absence of specific consumption information. It distributes the product to a specific set of consumers in proportion to some variable with a known distribution that is closely related to the use of that product by those consumers.

For example, in previous I-O benchmarks, prorates were used to allocate gasoline and tire purchases to particular industries based on miles driven.