Economics at your fingertips  

Assessing the Behaviour of Non-Survey Methods for Constructing Regional Input-Output Tables through a Monte Carlo Simulation

Andrea Bonfiglio and Francesco Chelli

Economic Systems Research, 2008, vol. 20, issue 3, 243-258

Abstract: The paper aims to analyse the behaviour of a battery of non-survey techniques of constructing regional I-O tables in estimating impact. For this aim, a Monte Carlo simulation, based on the generation of 'true' multiregional I-O tables, was carried out. By aggregating multi-regional I-O tables, national I-O tables were obtained. From the latter, indirect regional tables were derived through the application of various regionalisation methods and the relevant multipliers were compared with the 'true' multipliers using a set of statistics. Three aspects of the behaviour of the methods have been analysed: performances to reproduce 'true' multipliers, variability of simulation error and direction of bias. The results have demonstrated that the Flegg et al. Location Quotient (FLQ) and its augmented version (AFLQ) represent an effective improvement of conventional techniques based on the use of location quotients in both reproducing 'true' multipliers and generating more stable simulation errors. In addition, the results have confirmed the existence of a tendency of the methods to over/underestimate impact. In the cases of the FLQ and the AFLQ, this tendency depends on the value of the parameter δ.

Keywords: Input-Output matrices; non-survey techniques; Monte Carlo simulation; regional policy (search for similar items in EconPapers)
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (34) Track citations by RSS feed

Downloads: (external link) (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from

Access Statistics for this article

Economic Systems Research is currently edited by Bart Los and Manfred Lenzen

More articles in Economic Systems Research from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().

Page updated 2018-09-06
Handle: RePEc:taf:ecsysr:v:20:y:2008:i:3:p:243-258