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Alternative Input-Output Matrix Updating Formulations

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  • Randall Jackson
  • Alan Murray
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    Abstract

    There has been a recent resurgence of interest in biproportional adjustment methods for updating and interpreting change in matrix representations of regional structures, most commonly input-output accounts. Although the biproportional method, commonly called the RAS technique in the input-output literature, has been shown to have a number of theoretically appealing properties, various alternatives do exist. In this paper, we develop and empirically assess a number of alternatives, comparing performance and examining the attributes of these adjustment methods. Two of these are sign-preserving updating methods for use when tables contain both positive and negative entries. One of these is shown to generate less information gain than does a generalized RAS method that Junius & Oosterhaven (2003) formulated to deal with matrices with both positive and negative values. Overall, while the RAS method continues to be commonly used and its choice is often rational, alternative methods can perform as well or better along certain dimensions and in certain contexts.

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    File URL: http://www.tandfonline.com/doi/abs/10.1080/0953531042000219268
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    Bibliographic Info

    Article provided by Taylor and Francis Journals in its journal Economic Systems Research.

    Volume (Year): 16 (2004)
    Issue (Month): 2 ()
    Pages: 135-148

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    Handle: RePEc:taf:ecsysr:v:16:y:2004:i:2:p:135-148

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    Related research

    Keywords: Updating; Biproportion; Ras; Distance Measures;

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    Cited by:
    1. Andrea BONFIGLIO, 2005. "Analysing EU Accession Effects in Romania by a Multiregional I-O Model," Working Papers 226, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    2. Eduardo A. Haddad & Vasco Silva, Alexandre A. Porsse, Tomaz Dentinho, 2012. "Multipliers in an Island Economy: The Case of the Azores," Working Papers, Department of Economics 2012_24, University of São Paulo (FEA-USP).
    3. Emilian Dobrescu & Viorel Gaftea, 2012. "On the Accuracy of RAS Method in an Emergent Economy," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 14(32), pages 502-521, June.

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