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Incorporating uncertainty in the coefficients and multipliers of an IO table: A case study

Author

Listed:
  • Díaz, Bárbara
  • Morillas, Antonio

Abstract

Uncertainty is a topic not examined in depth in input output (IO) analysis, especially from an empirical approach. We propose the use of the information obtained in the surveys conducted to create the IO technical coefficients matrix to adequately take into account the inherent uncertainty it contains. We propose a Beta distribution probability as a very suitable hypothesis and we have tested it in the Andalusian IO table. We have created probability intervals for each one of the coefficients and defined associated fuzzy coefficients, which allows us to obtain an interval IO matrix and to derive first order interval multipliers.

Suggested Citation

Handle: RePEc:eee:paresc:v:90:y:2011:i:4:p:845-862
DOI: 10.1111/j.1435-5957.2010.00341.x
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JEL classification:

  • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
  • C40 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - General
  • C65 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Miscellaneous Mathematical Tools
  • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models

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