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Entropy Theory and RAS are Friends

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  • McDougall, Robert

Abstract

May 1999 Presented at the 2nd Annual Conference on Global Economic Analysis Recent research in applications of entropy theory to matrix balancing problems in eco-nomics has put powerful new tools in the hands of data base developers, but overshadowed some previous findings. We recall earlier findings that the RAS is an entropy-theoretic model. Investigating the properties of a more recently proposed entropy-theoretic model, we find that in general the RAS remains preferable. We show further that the RAS can be obtained also as a generalised cross-entropy model. Finally, we present examples illus-trating how entropy-theoretic techniques can extend the RAS to handle a wider range of problems.

Suggested Citation

  • McDougall, Robert, 1999. "Entropy Theory and RAS are Friends," GTAP Working Papers 300, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    • Handle: RePEc:gta:workpp:300
    Note: GTAP Working Paper No. 06
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    File URL: https://www.gtap.agecon.purdue.edu/resources/res_display.asp?RecordID=300
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