IDEAS home Printed from https://ideas.repec.org/a/taf/ecsysr/v18y2006i2p115-131.html
   My bibliography  Save this article

Structural change decomposition through a global sensitivity analysis of input-output models

Author

Listed:
  • Marco Percoco
  • Geoffrey Hewings
  • Lanfranco Senn

Abstract

Sensitivity analysis has become an important tool to test the robustness of estimated economic models. In this paper we propose the use of simulation-based sensitivity analysis to identify the fundamental structure of the economy. To show the possibilities of this technique, we provide empirical evidence on the path of structural change occurring in the Chicago economy by running simulations for projected input-output tables over the period 1975-2010.

Suggested Citation

  • Marco Percoco & Geoffrey Hewings & Lanfranco Senn, 2006. "Structural change decomposition through a global sensitivity analysis of input-output models," Economic Systems Research, Taylor & Francis Journals, vol. 18(2), pages 115-131.
    • Handle: RePEc:taf:ecsysr:v:18:y:2006:i:2:p:115-131
    DOI: 10.1080/09535310600652919
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/09535310600652919
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/09535310600652919?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. West, Guy R, 1986. "A Stochastic Analysis of an Input-Output Model," Econometrica, Econometric Society, vol. 54(2), pages 363-374, March.
    2. Pannell, David J., 1997. "Sensitivity analysis of normative economic models: theoretical framework and practical strategies," Agricultural Economics, Blackwell, vol. 16(2), pages 139-152, May.
    3. Dungan, D. Peter & Wilson, Thomas A., 1991. "Macroeconomic effects and sensitivity analysis," Journal of Policy Modeling, Elsevier, vol. 13(3), pages 435-457.
    4. Sergio Rey & Guy West & Mark Janikas, 2004. "Uncertainty in Integrated Regional Models," Economic Systems Research, Taylor & Francis Journals, vol. 16(3), pages 259-277.
    5. Bullard, Clark W, III & Sebald, Anthony V, 1977. "Effects of Parametric Uncertainty and Technological Change on Input-Output Models," The Review of Economics and Statistics, MIT Press, vol. 59(1), pages 75-81, February.
    6. Nordblom, Thomas L. & Pannell, David J. & Christiansen, Scott & Nersoyan, Nerses & Bahhady, Faik, 1994. "From weed to wealth? Prospects for medic pastures in the Mediterranean farming system of north-west Syria," Agricultural Economics, Blackwell, vol. 11(1), pages 29-42, September.
    7. Harrison, Glenn W & Vinod, H D, 1992. "The Sensitivity Analysis of Applied General Equilibrium Models: Completely Randomized Factorial Sampling Designs," The Review of Economics and Statistics, MIT Press, vol. 74(2), pages 357-362, May.
    8. Simonovits, A, 1975. "A Note on the Underestimation and Overestimation of the Leontief Inverse," Econometrica, Econometric Society, vol. 43(3), pages 493-498, May.
    9. Saltelli A. & Tarantola S., 2002. "On the Relative Importance of Input Factors in Mathematical Models: Safety Assessment for Nuclear Waste Disposal," Journal of the American Statistical Association, American Statistical Association, vol. 97, pages 702-709, September.
    10. Lahiri, Sajal & Satchell, Steve, 1985. "Underestimation and overestimation of the Leontief inverse revisited," Economics Letters, Elsevier, vol. 18(2-3), pages 181-186.
    11. Bullard, Clark W & Sebald, Anthony V, 1988. "Monte Carlo Sensitivity Analysis of Input-Output Models," The Review of Economics and Statistics, MIT Press, vol. 70(4), pages 708-712, November.
    12. Erik Dietzenbacher & Bart Los, 1998. "Structural Decomposition Techniques: Sense and Sensitivity," Economic Systems Research, Taylor & Francis Journals, vol. 10(4), pages 307-324.
    13. Chavas, Jean-Paul, 2001. "Envelope and sensitivity analysis 'in the large'," Economics Letters, Elsevier, vol. 70(3), pages 295-301, March.
    14. Reiner Wolff, 2005. "A global robustness measure for input-output projections from ESA and SNA tables," Economic Systems Research, Taylor & Francis Journals, vol. 17(1), pages 77-93.
    15. Canova, Fabio, 1995. "Sensitivity Analysis and Model Evaluation in Simulated Dynamic General Equilibrium Economies," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 36(2), pages 477-501, May.
    16. Lahiri, Sajal, 1983. "A note on the underestimation and overestimation in stochastic input-output models," Economics Letters, Elsevier, vol. 13(4), pages 361-366.
    17. Silberberg, Eugene, 1974. "A revision of comparative statics methodology in economics, or, how to do comparative statics on the back of an envelope," Journal of Economic Theory, Elsevier, vol. 7(2), pages 159-172, February.
    18. Erik Dietzenbacher & Rutger Hoekstra, 2002. "The RAS Structural Decomposition Approach," Advances in Spatial Science, in: Geoffrey J. D. Hewings & Michael Sonis & David Boyce (ed.), Trade, Networks and Hierarchies, chapter 10, pages 179-199, Springer.
    19. Yasuhide Okuyama & Geoffrey J.D. Hewings & Michael Sonis & Philip R. Israilevich, 2002. "An Economic Analysis of Biproportional Properties in an Input‐Output System," Journal of Regional Science, Wiley Blackwell, vol. 42(2), pages 361-387, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fernando Bermejo & Raúl del Pozo & Pablo Moya, 2021. "Main Factors Determining the Economic Production Sustained by Public Long-Term Care Spending in Spain," IJERPH, MDPI, vol. 18(17), pages 1-18, August.
    2. Richard Wood, 2011. "Construction, Stability And Predictability Of An Input-Output Time-Series For Australia," Economic Systems Research, Taylor & Francis Journals, vol. 23(2), pages 175-211.
    3. Wiedmann, Thomas, 2009. "A review of recent multi-region input-output models used for consumption-based emission and resource accounting," Ecological Economics, Elsevier, vol. 69(2), pages 211-222, December.
    4. Marco Percoco, 2006. "A Note on the Inoperability Input‐Output Model," Risk Analysis, John Wiley & Sons, vol. 26(3), pages 589-594, June.
    5. Rodolfo Metulini & Giorgio Gnecco & Francesco Biancalani & Massimo Riccaboni, 2023. "Hierarchical clustering and matrix completion for the reconstruction of world input–output tables," AStA Advances in Statistical Analysis, Springer;German Statistical Society, vol. 107(3), pages 575-620, September.
    6. Marco Percoco, 2012. "On the Sensitivity Analysis of the IIM: A Rejoinder," Risk Analysis, John Wiley & Sons, vol. 32(1), pages 7-8, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Umed Temurshoev, 2015. "Uncertainty treatment in input-output analysis," Working Papers 2015-004, Universidad Loyola Andalucía, Department of Economics.
    2. Manfred Lenzen, 2001. "A Generalized Input-Output Multiplier Calculus for Australia," Economic Systems Research, Taylor & Francis Journals, vol. 13(1), pages 65-92.
    3. Marco Percoco, 2004. "A Statistical Model for the Identification of Key Sectors in I-O Models," ERSA conference papers ersa04p90, European Regional Science Association.
    4. Malcolm Beynon & Max Munday & Annette Roberts, 2005. "Ranking sectors using fuzzy output multipliers," Economic Systems Research, Taylor & Francis Journals, vol. 17(3), pages 237-253.
    5. Pannell, David J., 1997. "Sensitivity analysis of normative economic models: theoretical framework and practical strategies," Agricultural Economics, Blackwell, vol. 16(2), pages 139-152, May.
    6. Guilhoto, Joaquim José Martins & Conceição, Pedro H.Z. da & Crocomo, Francisco C., 1996. "Estruturas de produção, consumo, e distribuição de renda na economia brasileira: 1975 e 1980 comparados [Production, consumption and income distribution structures in Brazilian economy: 1975 and 19," MPRA Paper 54749, University Library of Munich, Germany.
    7. Wu, C. C. & Chang, N. B., 2003. "Grey input-output analysis and its application for environmental cost allocation," European Journal of Operational Research, Elsevier, vol. 145(1), pages 175-201, February.
    8. Guilhoto, Joaquim J.M., 1995. "Um modelo computável de equilíbrio geral para planejamento e análise de políticas agrícolas (PAPA) na economia brasileira [A computable general equilibrium model for planning and analysis of agricu," MPRA Paper 42349, University Library of Munich, Germany.
    9. Guilhoto, Joaquim José Martins & Sonis, Michael & Hewings, Geoffrey J.D. & Martins, Eduardo B., 1994. "Índices de ligações e setores chave na economia brasileira: 1959-1980 [Linkages and key-sectors in the Brazilian economy: 1959-180]," MPRA Paper 54759, University Library of Munich, Germany.
    10. Sonis, Michael & Guilhoto, Joaquim José Martins & Hewings, Geoffrey J.D., 1995. "The Asian economy: trade structure interpreted by feedback loop analysis," MPRA Paper 54756, University Library of Munich, Germany.
    11. Gurgul, Henryk, 2007. "Stochastic input-output modeling," MPRA Paper 68573, University Library of Munich, Germany, revised 2007.
    12. Sonis, Michael & Guilhoto, Joaquim José Martins & Hewings, Geoffrey J.D. & Martins, Eduardo B., 1995. "Linkages, key sectors and structural change: some new perspectives," MPRA Paper 54754, University Library of Munich, Germany.
    13. Daniel Moran & Richard Wood, 2014. "Convergence Between The Eora, Wiod, Exiobase, And Openeu'S Consumption-Based Carbon Accounts," Economic Systems Research, Taylor & Francis Journals, vol. 26(3), pages 245-261, September.
    14. Kumar, Indraneel & Tyner, Wallace E. & Sinha, Kumares C., 2016. "Input–output life cycle environmental assessment of greenhouse gas emissions from utility scale wind energy in the United States," Energy Policy, Elsevier, vol. 89(C), pages 294-301.
    15. Hewings, Geoffrey J D & Jensen, Rodney C, 1988. "Emerging Challenges in Regional Input-Output Analysis," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 22(0), pages 43-53, February.
    16. Daniel Harenberg & Stefano Marelli & Bruno Sudret & Viktor Winschel, 2019. "Uncertainty quantification and global sensitivity analysis for economic models," Quantitative Economics, Econometric Society, vol. 10(1), pages 1-41, January.
    17. Haasnoot, Cornelis W. & de Vaal, Albert, 2022. "Heterogeneous firms and cluster externalities: how asymmetric effects at the firm level affect cluster productivity," Research Policy, Elsevier, vol. 51(6).
    18. Kirsten S. Wiebe, 2016. "The impact of renewable energy diffusion on European consumption-based emissions," Economic Systems Research, Taylor & Francis Journals, vol. 28(2), pages 133-150, June.
    19. Aroche-Reyes, Fidel & García Muñiz, Ana Salomé, 2012. "Modelling economic structures from a Qualitative Input-Output Perspective: Greece in 2005 and 2010," MPRA Paper 44415, University Library of Munich, Germany.
    20. Thijs ten Raa & Pieter Kop Jansen, 1998. "Bias and Sensitivity of Multipliers," Economic Systems Research, Taylor & Francis Journals, vol. 10(3), pages 275-284.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:ecsysr:v:18:y:2006:i:2:p:115-131. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CESR20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.