Estimating Regional Input Coefficients and Multipliers: The Use of FLQ is Not a Gamble

Anthony T. Flegg and Timo Tohmo

Regional Studies, 2016, vol. 50, issue 2, 310-325

Abstract: F legg A. T. and T ohmo T. Estimating regional input coefficients and multipliers: the use of FLQ is not a gamble, Regional Studies . This paper re-examines the Finnish evidence presented by Lehtonen and Tykkyl�inen on the use of location quotients (LQs) in estimating regional input coefficients and multipliers. They argue that the choice of an LQ-based method is a gamble and that there is no single method that can be recommended for general use. It is contended here that this evidence is erroneous and that the FLQ (Flegg's location quotient) yields results far superior to those from competing formulae, so it should provide a satisfactory way of generating an initial set of input coefficients. The choice of a value for the parameter δ is also examined.

Date: 2016
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DOI: 10.1080/00343404.2014.901499

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