Impacts of Aggregation on Relative Performances of Nonsurvey Updating Techniques And Intertemporal Stability of Input–Output Coefficients
In many instances, and for variety of reasons, input–output researchers are compelled to both employ mechanical techniques to update older survey-based tables as well as using more aggregated ones. This combination, however, gives rise to several concerns. The present paper is an attempt to investigate two such questions. First, the effects of aggregation on the accuracy ranking of selected updating methods, and second, the effects of aggregation on intertemporal stability of the input–output coefficients. To probe these issues, three updating methods were selected. These methods are NAÏVE or constant coefficient hypothesis, RAS or biproportional method, and LaGrangian optimization technique. Two survey-based tables from the former Soviet Union along with the selected updating techniques are used to generate updated target year’s direct and inverse transaction matrices at four aggregation levels. Comparison of the resultant estimates at these four levels of aggregation with their counterparts in the actual benchmark table reveals that a higher level of aggregation neither affects the rankings of the updating methods nor does it universally and unequivocally leads to a higher degree of intertemporal stability of input–output coefficients. Copyright Springer Science+Business Media, Inc. 2005
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 38 (2005)
Issue (Month): 2 (June)
|Contact details of provider:|| Web page: http://www.springer.com|
|Order Information:||Web: http://www.springer.com/economics/development/journal/10644/PS2|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- F J Harrigan & J W McGilvray & I H McNicoll, 1980. "Simulating the Structure of a Regional Economy," Environment and Planning A, , vol. 12(8), pages 927-936, August.
- Michael L. Lahr & Benjamin H. Stevens, 2002. "A Study of the Role of Regionalization in the Generation of Aggregation Error in Regional Input -Output Models," Journal of Regional Science, Wiley Blackwell, vol. 42(3), pages 477-507.
- Gibbons, Joel C. & Wolsky, Alan M. & Tolley, George, 1982. "Approximate aggregation and error in input-output models," Resources and Energy, Elsevier, vol. 4(3), pages 203-230, September.
- F J Harrigan & J W McGilvray & I H McNicoll, 1980. "Simulating the structure of a regional economy," Environment and Planning A, Pion Ltd, London, vol. 12(8), pages 927-936, August.
- Lee, Kevin C & Pesaran, M Hashem & Pierse, Richard G, 1990. "Testing for Aggregation Bias in Linear Models," Economic Journal, Royal Economic Society, vol. 100(400), pages 137-150, Supplemen.
When requesting a correction, please mention this item's handle: RePEc:kap:ecopln:v:38:y:2005:i:2:p:147-165. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Rebekah McClure)
If references are entirely missing, you can add them using this form.