Failure of the normalization of the RAS method: absorption and fabrication effects are still incorrect

Louis de Mesnard

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Abstract: The r and s vectors of the RAS method of updating matrices are presented often as corresponding to an absorption effect and a fabrication effect. Here, it is proved that these vectors are not identified, so their interpretation in terms of fabrication and absorption effect is incorrect and even if a normalization was proposed to remove underidentification, this normalization fails and poses many difficulties.

Keywords: biproportion; economics; economic theory; management; input-output; management economics; gestion; économie (search for similar items in EconPapers)
Date: 2000
Note: View the original document on HAL open archive server: https://hal.science/hal-01527142v1
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Citations: View citations in EconPapers (3)

Published in [Research Report] Laboratoire d'analyse et de techniques économiques(LATEC). 2000, 17 p., Figure, ref. bib. : 2 p. 1/2

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