Estimating regional input coefficients and multipliers: The Use of the FLQ is not a Gamble
This paper re-examines the Finnish evidence presented by Lehtonen and Tykkyläinen on the use of location quotients (LQs) in estimating regional input coefficients and multipliers. They argue that the choice of an LQ-based method is a gamble and that there is no single method that can be recommended for general use. It is contended here that this evidence is erroneous and that the FLQ yields results far superior to those from competing formulae, so it should provide a satisfactory way of generating an initial set of input coefficients. The choice of a value for the parameter & is also examined.
|Date of creation:||02 Jan 2013|
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- Kronenberg, Tobias, 2011. "Regional input-output models and the treatment of imports in the European System of Accounts," MPRA Paper 30797, University Library of Munich, Germany.
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- Kauppila, Jari, 1999. "Estimating Interregional Trade Flows in Finland 1996," ERSA conference papers ersa99pa066, European Regional Science Association.
- Anthony T. Flegg & Leonardo J. Mastronardi & Carlos A. Romero, 2014. "Empirical evidence on the use of the FLQ formula for regionalizing national input-output tables: The case of the Province of C¨®rdoba, Argentina," Working Papers 20141406, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
- Andrea Bonfiglio & Francesco Chelli, 2008. "Assessing the Behaviour of Non-Survey Methods for Constructing Regional Input-Output Tables through a Monte Carlo Simulation," Economic Systems Research, Taylor & Francis Journals, vol. 20(3), pages 243-258.
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