Title: Stochastic Analysis of Input-Output Multipliers on the Basis of Use and Make Tables
Citation: REVIEW OF INCOME AND WEALTH vol. 53 no. 2 p. 318-334
Publication Year: 2007
JRC N°: JRC35760
ISSN: 0034-6586
URI: http://www.blackwell-synergy.com/doi/pdf/10.1111/j.1475-4991.2007.00227.x
DOI: 10.1111/j.1475-4991.2007.00227.x
Type: Articles in periodicals and books
Abstract: Although technical coefficients are estimated on the basis of flow data (use and make matrices), they are rarely treated as random variables. If this is done, an error term is added to the coefficients, rather than derived from the distribution of the data. Even so, the calculation of multipliers, by means of the Leontief inverse, is difficult. Due to the nonlinearity of this operation, the multiplier estimates are biased. By going back to the flow data, this paper provides unbiased and consistent employment and output multipliers estimates for the Andalusian economy. Rectangular use and make matrices are accommodated and problems associated with the construction and estimation of technical coefficients and the Leontief inverse are circumvented.
JRC Directorate:Growth and Innovation

Files in This Item:
There are no files associated with this item.

Items in repository are protected by copyright, with all rights reserved, unless otherwise indicated.