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Bicausative matrices to measure structural change: are they a good tool?

Louis de Mesnard ()

No 9904, LATEC - Document de travail - Economie (1991-2003) from LATEC, Laboratoire d'Analyse et des Techniques EConomiques, CNRS UMR 5118, Université de Bourgogne

Abstract: The causative-matrix method to analyze temporal change assumes that a matrix transforms one Markovian transition matrix into another by a left multiplication of the first matrix; the method is demand-driven when applied to input-output economics. An extension is presented without assuming the demand-driven or supply-driven hypothesis. Starting from two flow matrices X and Y, two diagonal matrices are searched, one premultiplying and the second postmultiplying X, to obtain a result the closer as possible to Y by least squares. The paper proves that the method is deceptive because the diagonal matrices are unidentified and the interpretation of results is unclear. Keywords : Input-Output ; Change ; Causative ; RAS ; Biproportion.

JEL-codes: C63 C67 D57 (search for similar items in EconPapers)
Date: 1999-03
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Published in The Annals of Regional Science, 2000,34, 3, 421-449

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Related works:
Journal Article: Bicausative matrices to measure structural change: Are they a good tool? (2000) Downloads
Working Paper: Bicausative matrices to measure structural change: Are they a good tool? (2000)
Working Paper: Bicausative matrices to measure structural change: are they a good tool ? (1999) Downloads
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