IDEAS home Printed from https://ideas.repec.org/p/cea/doctra/e2004_14.html
   My bibliography  Save this paper

How to Estimate Unbiased and Consistent input-output Multipliers on the Basis of use and Make Matrices

Author

Listed:

Abstract

In the literature, the construction of technical coefficients is linked to flow data (use and make matrices), but stochastics are imposed on the coefficients when multipliers are calculated, by means of the Leontief inverse. Due the nonlinearity of this operation, the multiplier estimates are biased (it is generally argued that the Leontief inverse underestimates input-output multipliers). By going back to the flow data, this paper provides unbiased and consistent employment and output multipliers estimates for the Andalusian economy. Rectangular use and make matrices are accommodated and technical coefficients, the Leontief inverse, and associated problems (such as negative coefficients) are circumvented.

Suggested Citation

  • Thijs ten Raa & José Manuel Rueda Cantuche, 2004. "How to Estimate Unbiased and Consistent input-output Multipliers on the Basis of use and Make Matrices," Economic Working Papers at Centro de Estudios Andaluces E2004/14, Centro de Estudios Andaluces.
    • Handle: RePEc:cea:doctra:e2004_14
    as

    Download full text from publisher

    File URL: http://public.centrodeestudiosandaluces.es/pdfs/E200414.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Thijs ten Raa & José M. Rueda-Cantuche, 2005. "The problem of negatives in input-output analysis: a review of the solutions," Economic Working Papers at Centro de Estudios Andaluces E2005/07, Centro de Estudios Andaluces.

    More about this item

    Keywords

    Stochastic input-output analysis; employment multipliers; output multipliers; use and make matrices.;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • E27 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Forecasting and Simulation: Models and Applications

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cea:doctra:e2004_14. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Susana Mérida (email available below). General contact details of provider: https://edirc.repec.org/data/fcanges.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.