Uncertainty in Integrated Regional Models
Abstract
This paper examines the nature of uncertainty in integrated econometric+input-output (ECIO) regional models. We focus on three sources of uncertainty: (a) econometric model parameter uncertainty; (b) econometric disturbance term uncertainty; and (c) input-output coefficient uncertainty. Through a series of Monte Carlo simulations we analyse the relative importance of each component as well as the question of how their interaction may propagate through the integrated model to affect the distributions of the endogenous variables. Our results suggest that there is no simple answer to the question of which source of uncertainty is most important in an integrated model. Instead, that answer is conditioned upon the focus of the analysis and whether the industry specific or macro level variables are of central concerns.Download Info
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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): 3 ()
Pages: 259-277
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Related research
Keywords: Input-output; econometric; integrated model; uncertainty;Other versions of this item:
- Sergio J. Rey & Guy R. West & Mark V. Janikas, 2004. "Uncertainty in Integrated Regional Models," Urban/Regional 0401001, EconWPA.
References
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Marco Percoco & Geoffrey Hewings & Lanfranco Senn, 2006. "Structural change decomposition through a global sensitivity analysis of input-output models," Economic Systems Research, Taylor and Francis Journals, vol. 18(2), pages 115-131.
- Sporri, C. & Borsuk, M. & Peters, I. & Reichert, P., 2007. "The economic impacts of river rehabilitation: A regional Input-Output analysis," Ecological Economics, Elsevier, vol. 62(2), pages 341-351, April.
- Arbex, Marcelo & Perobelli, Fernando S., 2010. "Solow meets Leontief: Economic growth and energy consumption," Energy Economics, Elsevier, vol. 32(1), pages 43-53, January.
- Beynon, Malcolm J. & Munday, Max, 2008. "Considering the effects of imprecision and uncertainty in ecological footprint estimation: An approach in a fuzzy environment," Ecological Economics, Elsevier, vol. 67(3), pages 373-383, October.
- Malcolm Beynon & Max Munday, 2008. "Stochastic key sector analysis: an application to a regional input–output framework," The Annals of Regional Science, Springer, vol. 42(4), pages 863-877, December.
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