Sensitivity of Simulation Results to Competing SAM Updates

Manuel Alejandro Cardenete and Ferran Sancho

UFAE and IAE Working Papers from Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC)

Abstract: Recently there has been a renewed research interest in the properties of non survey updates of input-output tables and social accounting matrices (SAM). Along with the venerable and well known scaling RAS method, several alternative new procedures related to entropy minimization and other metrics have been suggested, tested and used in the literature. Whether these procedures will eventually substitute or merely complement the RAS approach is still an open question without a definite answer. The performance of many of the updating procedures has been tested using some kind of proximity or closeness measure to a reference input-output table or SAM. The first goal of this paper, in contrast, is the proposal of checking the operational performance of updating mechanisms by way of comparing the simulation results that ensue from adopting alternative databases for calibration of a reference applied general equilibrium model. The second goal is to introduce a new updatin! g procedure based on information retrieval principles. This new procedure is then compared as far as performance is concerned to two well-known updating approaches: RAS and cross-entropy. The rationale for the suggested cross validation is that the driving force for having more up to date databases is to be able to conduct more current, and hopefully more credible, policy analyses.

Keywords: Social Accounting Matrices; Model Evaluation; Applied General Equilibrium; Non-survey Updating Techniques (search for similar items in EconPapers)
JEL-codes: C52 C67 C68 (search for similar items in EconPapers)
Pages: 32
Date: 2002-12-15
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Related works:
Working Paper: Sensitivity of Simulation Results to Competing SAM Updates (2010)
Working Paper: Sensitivity of Simulation Results to Competing SAM Updates (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:aub:autbar:556.02

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