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Cocientes de localizaci�n mediante una doble parametrizaci�n

Author

Listed:
  • Xes�s Pereira L�pez

    ()

  • Andr� Carrascal Incera
  • Melchor Fern�ndez Fern�ndez

    (GAME-IDEGA, Universidade de Santiago de Compostela)

Abstract

It is relatively common to use location quotients (LQ) in the elaboration of regional (or sub-national) input-output tables (IOT). In the application of this kind of methodology, there appear two simultaneous corrections of the intermediate consumption matrix (one by rows and another by columns). A typical formula for this purpose is the Flegg Location Quotient (FLQ). However, it presents some rigidity since it works only with a single parameter that affects the logarithmic smoothing of the output (employment or value added) weight of the regional totals. This applies the same treatment to all the possible estimations, essentially derived from the interindustry quotients (CILQ). The modified or augmented FLQ formula (AFLQ) uses the same condition, with the only difference that it includes a correction by buying sectors. In this paper, we present an alternative formulation for LQ characterized by a double- parameterization process with a potential smoothing function. Contrasting with the FLQ formula, this methodology is more flexible because it guarantees a specific treatment in each row and column. Finally, in order to show the applicability of the method, an estimation of the Spanish symmetric IOT for 2005 from the EA17 table is produced and subsequently contrasted with the corresponding Spanish IOT elaborated by Eurostat.

Suggested Citation

  • Xes�s Pereira L�pez & Andr� Carrascal Incera & Melchor Fern�ndez Fern�ndez, 2013. "Cocientes de localizaci�n mediante una doble parametrizaci�n," Documentos de trabajo - IRENe 0006, IDEGA - Instituto Universitario de Estudios e Desenvolvemento de Galicia.
  • Handle: RePEc:edg:irenen:0006
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    Keywords

    location quotients; regional economies; input-output tables;

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • R19 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Other

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