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The Performance of Alternative Integration Strategies for Combining Regional Econometric and Input-Output Models

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  • Sergio J. Rey

    (Department of Geography, San Diego State University, San Diego, CA 92182 USA, serge@dirohan.sdsu.edu)

Abstract

As the number of integrated econometric and input-output models appearing in the literature grows, the need for a closer examination of the different approaches towards integration is warranted. This paper suggests a taxonomy of strategies for combining econometric and input-output models at the regional scale. The properties of the different integration strategies are then examined from a theoretical perspective, focusing on the treatment of model closure, dynamic representation. interregional linkages, sectoral aggregation, and estimation issues. Initial empirical insight as to the simulation and impact analysis capabilities of the alternative integration strategies is provided through a series of experiments employing integrated multiregional econometric and input-output models for five regions in Southern California. The results suggest that integrated models as a class can provide for improved forecasting accuracy as well as more comprehensive impact analysis capabilities over traditional non-integrated models. Additional insights are provided regarding the sensitivity of model performance to the choice of integration strategy.

Suggested Citation

  • Sergio J. Rey, 1998. "The Performance of Alternative Integration Strategies for Combining Regional Econometric and Input-Output Models," International Regional Science Review, , vol. 21(1), pages 1-35, April.
    • Handle: RePEc:sae:inrsre:v:21:y:1998:i:1:p:1-35
    DOI: 10.1177/016001769802100101
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    Cited by:

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    2. L. I. Vlasyuk, 2017. "Strategic planning and forecasting system in the Russian Federation: a regional projection," Russian Journal of Industrial Economics, MISIS, vol. 10(2).
    3. Adam Rose & Dan Wei & Noah Dormady, 2011. "Regional macroeconomic assessment of the Pennsylvania Climate Action Plan," Regional Science Policy & Practice, Wiley Blackwell, vol. 3(4), pages 357-379, November.
    4. Randall Jackson & Sergio Rey & Péter Járosi, 2016. "Object Orientation, Open Regional Science,and Cumulative Knowledge Building," Working Papers Working Paper 2016-02, Regional Research Institute, West Virginia University.
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    6. Cordier, Mateo & Uehara, Takuro & Weih, Jeffrey & Hamaide, Bertrand, 2017. "An Input-output Economic Model Integrated Within a System Dynamics Ecological Model: Feedback Loop Methodology Applied to Fish Nursery Restoration," Ecological Economics, Elsevier, vol. 140(C), pages 46-57.
    7. Rickman, Dan S. & Miller, Steven R., 2002. "An Evaluation of Alternative Strategies for Incorporating Interindustry Relationships into a Regional Employment Forecasting Model," The Review of Regional Studies, Southern Regional Science Association, vol. 32(1), pages 133-147, Winter/Sp.
    8. Dan Wei and Adam Rose, 2014. "Macroeconomic Impacts of the California Global Warming Solutions Act on the Southern California Economy," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 2).
    9. Lawrence, Michael F. & Wei, Dan & Rose, Adam & Williamson, Scott & Cartwright-Smith, Devon, 2017. "Macroeconomic impacts of proposed climate change mitigation strategies for transportation in Southern California," Research in Transportation Economics, Elsevier, vol. 61(C), pages 56-69.
    10. Dan S. Rickman & Steven R. Miller & Russell McKenzie, 2009. "Spatial and sectoral linkages in regional models: A Bayesian vector autoregression forecast evaluation," Papers in Regional Science, Wiley Blackwell, vol. 88(1), pages 29-41, March.

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