On the Accuracy of RAS Method in an Emergent Economy
AbstractThe goal of this paper is to check the applicability of RAS procedure (in its conventional definition) on statistical series of an emergent economy, as the Romanian one. As it is known, during transition from centrally planned system to market mechanisms, the society passes through deep restructuration, consisting in complex institutional changes, technological shifts, sectoral reallocation of productive factors, which continuously affected the input-output technical coefficients. Testing the RAS algorithm on such a volatile framework is a notable search challenge. Our empirical experiment is based on annual input-output tables for two decades (1989- 2008). In order to easier manipulate the available data base, the extended classification of economic activities containing 105 branches has been aggregated into 10 sectors. For each year, two (10x10) matrices: aij (statistically recorded technical coefficients) and raij (the same coefficients estimated using RAS method) were computed. The paper is organized in three sections. The first discusses several methodological issues of this algorithm. It also evaluates the differences between matrices aij and raij, involving both categories of accuracy measures - either the “cell-by-cell” comparison or the aggregated indicators. The second section extensively examines these measures, the presentation being systematized sectorally. Such an approach allows revealing specificities of different branches in their inter-industry co-operation. The third section sketches an overview of the obtained results and extracts some conclusions related to the problems that arise in the application of RAS method.
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Bibliographic InfoArticle provided by Academy of Economic Studies - Bucharest, Romania in its journal The AMFITEATRU ECONOMIC journal.
Volume (Year): 14 (2012)
Issue (Month): 32 (June)
input-output; technical coefficient; RAS;
Find related papers by JEL classification:
- C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
- D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dobrescu, Emilian & Gaftea, Viorel & Scutaru, Cornelia, 2010. "Using the Leontief Matrix to Estimate the Impact of Investments upon the Global Output," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 176-187, July.
- Dobrescu, Emilian, 2009. "Measuring the Interaction of Structural Changes with Inflation," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 6(5), pages 5-99.
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- Randall Jackson & Alan Murray, 2004. "Alternative Input-Output Matrix Updating Formulations," Economic Systems Research, Taylor & Francis Journals, vol. 16(2), pages 135-148.
- Dobrescu, Emilian, 2013. "Restatement of the I-O Coefficient Stability Problem," Working Papers of Macroeconomic Modelling Seminar 132601, Institute for Economic Forecasting.
- Dobrescu, Emilian, 2012. "Restatement of the I-O Coefficient Stability Problem," MPRA Paper 48567, University Library of Munich, Germany.
- Florin-Marius PAVELESCU, 2012. "Fluctuation Of Economic Activity, Sectoral Distribution Of Gross Value Added And The Size Of Backward Multipliers In Romania During The Period 1989-2009," Romanian Journal of Economics, Institute of National Economy, vol. 35(2(44)), pages 88-112, December.
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