How to Estimate Unbiased and Consistent input-output Multipliers on the Basis of use and Make Matrices

Thijs ten Raa and José Rueda-Cantuche

No E2004/14, Economic Working Papers at Centro de Estudios Andaluces from Centro de Estudios Andaluces

Abstract: In the literature, the construction of technical coefficients is linked to flow data (use and make matrices), but stochastics are imposed on the coefficients when multipliers are calculated, by means of the Leontief inverse. Due the nonlinearity of this operation, the multiplier estimates are biased (it is generally argued that the Leontief inverse underestimates input-output multipliers). By going back to the flow data, this paper provides unbiased and consistent employment and output multipliers estimates for the Andalusian economy. Rectangular use and make matrices are accommodated and technical coefficients, the Leontief inverse, and associated problems (such as negative coefficients) are circumvented.

Keywords: Stochastic input-output analysis; employment multipliers; output multipliers; use and make matrices. (search for similar items in EconPapers)
JEL-codes: C13 C67 D57 E27 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2004
New Economics Papers: this item is included in nep-ecm
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://public.centrodeestudiosandaluces.es/pdfs/E200414.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to public.centrodeestudiosandaluces.es:80 (nodename nor servname provided, or not known)

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: https://EconPapers.repec.org/RePEc:cea:doctra:e2004_14

Access Statistics for this paper

More papers in Economic Working Papers at Centro de Estudios Andaluces from Centro de Estudios Andaluces c/ Bailén 50. 41001 Sevilla. Contact information at EDIRC.
Bibliographic data for series maintained by Susana Mérida ( this e-mail address is bad, please contact ).