The bias of the multiplier matrix when supply and use tables are stochastic

The literature on stochastic input-output analysis has paid considerable attention to the bias in the Leontief inverse. This paper extends previous studies by assuming supply and use tables (rather than input-output tables or input coefficients matrices) to be stochastic. This is a natural starting point because supply and use tables have become the basic data sources for input-output applications. In a Monte Carlo simulation experiment, a given supply and use table is randomized in two different ways and the effects are determined for eight different multiplier matrices. The analysis is carried out for Spain, Italy, the Netherlands, Germany, and Finland, using their supply and use tables for 2006. The findings indicate that in general biases are statistically significant but negligibly small. This corroborates earlier findings obtained for stochastic input-output tables.

RUEDA-CANTUCHE José Manuel;  DIETZENBACHER Erik;  FERNÁNDEZ Esteban;  DE AMORES HERNANDEZ Antonio; 

2013-11-13

TAYLOR & FRANCIS LTD.

JRC80355

0953-5314,   

http://dx.doi.org/10.1080/09535314.2013.776947,    https://publications.jrc.ec.europa.eu/repository/handle/JRC80355,   

10.1080/09535314.2013.776947,