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Bicausative matrices to measure structural change: are they a good tool?

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Author Info
MESNARD, Louis de () (LATEC - CNRS - Université de Bourgogne)

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Abstract

The causative-matrix method to analyze temporal change assumes that a matrix transforms one Markovian transition matrix into another by a left multiplication of the first matrix; the method is demand-driven when applied to input-output economics. An extension is presented without assuming the demand-driven or supply-driven hypothesis. Starting from two flow matrices X and Y, two diagonal matrices are searched, one premultiplying and the second postmultiplying X, to obtain a result the closer as possible to Y by least squares. The paper proves that the method is deceptive because the diagonal matrices are unidentified and the interpretation of results is unclear. Keywords : Input-Output ; Change ; Causative ; RAS ; Biproportion.

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File URL: http://www.u-bourgogne.fr/leg/documents-de-travail/e9904.pdf
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Publisher Info
Paper provided by LATEC, Laboratoire d'Analyse et des Techniques EConomiques, CNRS UMR 5118, Université de Bourgogne in its series LATEC - Document de travail - Economie (1991-2003) with number 9904.

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Length: 25 pages
Date of creation: Mar 1999
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Publication status: published in The Annals of Regional Science, 2000,34, 3, 421-449
Handle: RePEc:lat:lateco:1999-04

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Find related papers by JEL classification:
C63 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Computational Techniques
C67 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Input-Output Models
D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis

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