Alternative Input-Output Matrix Updating Formulations

By R. Jackson, Alan T. Murray. 2004

151 citations recorded by the source corpus.

There has been a recent resurgence of interest in biproportional adjustment methods for updating and interpreting change in matrix representations of regional structures, most commonly input-output accounts. Although the biproportional method, commonly called the RAS technique in the input-output literature, has been shown to have a number of theoretically appealing properties, various alternatives do exist. In this paper, we develop and empirically assess a number of alternatives, comparing performance and examining the attributes of these adjustment methods. Two of these are sign-preserving updating methods for use when tables contain both positive and negative entries. One of these is shown to generate less information gain than does a generalized RAS method that Junius & Oosterhaven (2003) formulated to deal with matrices with both positive and negative values. Overall, while the RAS method continues to be commonly used and its choice is often rational, alternative methods can perform as well or better along certain dimensions and in certain contexts.

Subfields: Economics and Econometrics, Environmental Engineering, Political Science and International Relations

View Paper: https://www.semanticscholar.org/paper/66d132af40e1d0775ec3b127a2639a1b7643f1cf

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

1. D. Guan
2. G. D. de Vries
3. M. Timmer
4. B. Los
5. Kuishuang Feng
6. Klaus Hubacek
7. Zhu Liu
8. Robert Stehrer

In Environmental Engineering

1. D. Guan
2. Kuishuang Feng
3. Zhu Liu
4. Klaus Hubacek
5. G. D. de Vries
6. B. Los
7. M. Timmer
8. E. Dietzenbacher

In Political Science and International Relations

1. G. D. de Vries
2. M. Timmer
3. B. Los
4. Robert Stehrer
5. Weidong Liu
6. E. Dietzenbacher
7. Thomas Philippon
8. Thomas Niebel

Citations in the corpus

• Input-Output Analysis (2009, background): “• Jackson et al. (2006) and Schwarm, Jackson and Okuyama (2006) suggest a new approach to generating data for the 51-state US model (as in the US MRIO model discussed above in section 3.”
• THE CONSTRUCTION OF WORLD INPUT–OUTPUT TABLES IN THE WIOD PROJECT (2013, methodology): “Jackson and Murray (2004) and Temurshoev et al. (2011) tested the accuracy of several RAS-like methods against other updating procedures. supply table (V̂b), the use table (Ûb) and the final use matrix (Ŷb), all in basic prices.”
• Outsourcing CO2 within China (2013, methodology): “The RAS procedure tends to preserve as much as possible the structure of the initial matrix, with the minimum amount of necessary changes to restore the row and column sums to the known values (29, 30).”
• Global Sustainability Accounting—Developing EXIOBASE for Multi-Regional Footprint Analysis (2014, unknown): “The reader is referred to Jackson and Murray for an overview of matrix balancing techniques [68,69].”