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Locating the Most Important Transactions of the Economy by an Alternative Sensivity Analysis. Application to the Employment Structure of Nine European Countries

Listed author(s):
  • Tarancon, M.A.

The input-output structural analysis is a valuable tool when designing economic policies since it allows us to know which are the most important linkages and sectors of an economic system. The coefficients' sensitivity analysis is one of the major approaches of the structural analysis. With it we may measure how the output is influenced by changes in the coefficients. However, the classical sensitivity analysis, based on the Sherman & Morrison formula, shows several limitations. In this paper, an alternative approach based on linear programming and that deals with such challenges is proposed. The technique is then applied to an employment analysis in nine European countries.

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File URL: http://www.usc.es/economet/reviews/eers613.pdf
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Article provided by Euro-American Association of Economic Development in its journal Regional and Sectoral Economic Studies.

Volume (Year): 6 (2006)
Issue (Month): 1 ()
Pages:

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Handle: RePEc:eaa:eerese:v:6:y2006:i:6_3
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  1. R C Jensen & G R West, 1980. "The Effect of Relative Coefficient Size on Input—Output Multipliers," Environment and Planning A, , vol. 12(6), pages 659-670, June.
  2. Hewings, Geoffrey J. D. & Fonseca, Manuel & Guilhoto, Joaquim & Sonis, Michael, 1989. "Key sectors and structural change in the Brazilian economy: A comparison of alternative approaches and their policy implications," Journal of Policy Modeling, Elsevier, vol. 11(1), pages 67-90.
  3. R C Jensen & G R West, 1980. "The effect of relative coefficient size on input - output multipliers," Environment and Planning A, Pion Ltd, London, vol. 12(6), pages 659-670, June.
  4. Hermann Schnabl, 2003. "The ECA-method for Identifying Sensitive Reactions within an IO Context," Economic Systems Research, Taylor & Francis Journals, vol. 15(4), pages 495-504.
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