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Failure of the normalization of the RAS method : absorption and fabrication effects are still incorrect

Author

Listed:
  • Louis de Mesnard

    (LATEC - Laboratoire d'Analyse et de Techniques Economiques [UMR 5118] - UB - Université de Bourgogne - CNRS - Centre National de la Recherche Scientifique)

Abstract

The r and s vectors of the RAS method of updating matrices are presented often as corresponding to an absorption effect and a fabrication effect. Here, it is proved that these vectors are not identified, so their interpretation in terms of fabrication and absorption effect is incorrect and even if a normalization was proposed to remove underidentification, this normalization fails and poses many difficulties.

Suggested Citation

  • Louis de Mesnard, 2000. "Failure of the normalization of the RAS method : absorption and fabrication effects are still incorrect," Working Papers hal-01527142, HAL.
    • Handle: RePEc:hal:wpaper:hal-01527142
    Note: View the original document on HAL open archive server: https://hal.science/hal-01527142
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    Cited by:

    1. Emilian Dobrescu, 2013. "Restatement of the I-O Coefficient Stability Problem," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 2(1), pages 1-67, December.

    More about this item

    Keywords

    biproportion; economics; economic theory; management; input-output; management economics; gestion; économie;
    All these keywords.

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • 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

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