On The Parameterization Of Techniques For Representing Regional Economic Structures
AbstractThis paper is concerned with two parameterized methods of regionalising input-output coefficients: the Flegg et al. Location Quotient (FLQ) and its augmented version (AFLQ). For applying the two techniques, a parameter δ has to be estimated. In this regard, the paper faces two matters that are still open in the literature: the existence of a range of δ that can be used in different regions and the estimation of the most appropriate value of δ. For this aim, a Monte Carlo simulation has been carried out in order to generate 'true' multiregional I-O tables randomly. From the simulation, analyses based on probability distributions and regression were also carried out. Finally, these simulation results have been compared with those of an empirical case. Results confirm that there is actually a range of values of δ within which the best δ is more likely to fall. For the FLQ, this range is centred on 0.3 with an associated probability of 33% (if the width of the range is set at 0.1), whereas, for the AFLQ, the relevant range is between 0.3 and 0.4 with a probability by 38%. Finally, this paper provided a way to estimate the best δ for a given region, without knowing the relevant and detailed economic structure at sectoral level.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Economic Systems Research.
Volume (Year): 21 (2009)
Issue (Month): 2 ()
Contact details of provider:
Web page: http://www.tandfonline.com/CESR20
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Kristinn, Hermannsson, 2013.
"Beyond Intermediates: The Role of Consumption and Commuting in the Construction of Local Input-Output Tables,"
SIRE Discussion Papers
2013-37, Scottish Institute for Research in Economics (SIRE).
- Kristinn Hermannsson, 2013. "Beyond Intermediates: The Role of Consumption and Commuting in the Construction of Local Input-Output Tables," Working Papers 1305, University of Strathclyde Business School, Department of Economics.
- Kowalewski, Julia, 2012. "Inter-industrial relations and sectoral employment development in German regions," HWWI Research Papers 127, Hamburg Institute of International Economics (HWWI).
- Bonfiglio, Andrea & Esposti, Roberto, 2011. "Assessing the Economic Impact of an Agricultural Project in a Petroleum-Exporting Country. The Case of Palm Oil in the Republic of Congo," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114260, European Association of Agricultural Economists.
- Sunggoan Choi, 2013. "Revealing the Growth Potentials with Input-Output Model at Sub-national Level," ERSA conference papers ersa13p73, European Regional Science Association.
- Kowalewski, Julia, 2012. "Regionalization of national input-output tables: Empirical evidence on the use of the FLQ formula," HWWI Research Papers 126, Hamburg Institute of International Economics (HWWI).
- Anthony T. Flegg & Timo Tohmo, 2013. "Estimating regional input coefficients and multipliers: The Use of the FLQ is not a Gamble," Working Papers 20131302, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.