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Forecasting Regional Employment with the ENTROP Method

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  • Blien, Uwe
  • Tassinopoulos, Alexandros

Abstract

The paper provides an outline of a method useful for forecasting problems. The approach is based on a combination of top-down and bottom-up techniques. It is applied to project employment in all 327 (western) German districts for a time span of two years. The most important step in the preparation of the forecast uses the ENTROP method, which is an entropy optimizing procedure, a generalization of common RAS techniques, newly developed for the estimation of matrices from heterogeneous information. In a defined sense the estimated matrix is the most probable one. The method chosen is very flexible and uses any available information extensively. Therefore, the estimates are reliable as is shown in an ex-post forecast. There is a double purpose for the forecast of employment. First, it helps to gain insights in the causal processes generating regional developments and spatial disparities on labour markets. Second, it is useful for regional labour market policies, e.g. the budgetary planning of the Federal Employment Services. Cet article cherche a esquisser une methode qui repond aux problemes de la prevision. La methode est fondee sur une combinaison des techniques descendantes et ascendantes. On s'en sert afin de prevoir sur une periode de deux annees l'emploi dans chacun des 327 districts a l'ouest de l'Allemagne. Le stade preliminaire le plus important utilise la methode ENTROP, une methode qui optimise l'entropie, une generalisation des techniques RAS courantes, nouvellement developpees pour estimer les matrices de l'information heterogene. Du point de vue de sa definition, la matrice estimee s'averera la plus probable. La methode choisie est tres flexible et emploie beaucoup toute information disponible. Ainsi, les estimations sont sures, dont fait preuve une prevision ex post. La raison d'etre de la prevision de l'emploi est double. En premier, on arrive a mieux connaitre les causes du developpement regional et des ecarts regionaux du marche du travail. En deux
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Suggested Citation

  • Blien, Uwe & Tassinopoulos, Alexandros, 1999. "Forecasting Regional Employment with the ENTROP Method," ERSA conference papers ersa99pa344, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa99pa344
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    Cited by:

    1. Schanne, N. & Wapler, R. & Weyh, A., 2010. "Regional unemployment forecasts with spatial interdependencies," International Journal of Forecasting, Elsevier, vol. 26(4), pages 908-926, October.
    2. Roberto Patuelli & Simonetta Longhi & Aura Reggiani & Peter Nijkamp, 2005. "Multicriteria Analysis of Neural Network Forecasting Models: An Application to German Regional Labour Markets," Experimental 0511001, University Library of Munich, Germany.
    3. Simonetta Longhi & Peter Nijkamp & Aura Reggianni & Erich Maierhofer, 2005. "Neural Network Modeling as a Tool for Forecasting Regional Employment Patterns," International Regional Science Review, , vol. 28(3), pages 330-346, July.
    4. Robert Lehmann & Klaus Wohlrabe, 2014. "Regional economic forecasting: state-of-the-art methodology and future challenges," Economics and Business Letters, Oviedo University Press, vol. 3(4), pages 218-231.
    5. Uwe Blien & Friedrich Graef, 2013. "The ADETON method," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 33(2), pages 135-150, October.
    6. Uwe Blien & Friedrich Graef, 2000. "Estimating Labour Market Flows by the ADETON Method," Regional and Urban Modeling 283600012, EcoMod.
    7. Longhi, Simonetta & Nijkamp, Peter, 2006. "Forecasting regional labor market developments under spatial heterogeneity and spatial correlation," Serie Research Memoranda 0015, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    8. Simonetta Longhi & Peter Nijkamp, 2005. "Forecasting Regional Labour Market Developments Under Spatial Heterogeneity and Spatial Autocorrelation," Tinbergen Institute Discussion Papers 05-041/3, Tinbergen Institute.
    9. Katharina Hampel & Marcus Kunz & Norbert Schanne & Ruediger Wapler & Antje Weyh, 2006. "Regional Unemployment Forecasting Using Structural Component Models With Spatial Autocorrelation," ERSA conference papers ersa06p196, European Regional Science Association.
    10. Raymond Struyk & Douglas Wissoker & Ioulia Zaitseva, 2004. "Economic Forecasting for Large Russian Cities," ERSA conference papers ersa04p318, European Regional Science Association.
    11. Longhi, Simonetta & Nijkamp, Peter & Reggiani, Aura & Blien, Uwe, 2002. "Forecasting regional labour markets in Germany: an evaluation of the performance of neural network analysis," ERSA conference papers ersa02p117, European Regional Science Association.

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