Failure of the normalization of the RAS method: absorption and fabrication effects are still incorrect

Louis de Mesnard

No 2000-01, LATEC - Document de travail - Economie (1991-2003) from LATEC, Laboratoire d'Analyse et des Techniques EConomiques, CNRS UMR 5118, Université de Bourgogne

Abstract: The r and s vectors of the RAS method of updating matrices are presented often as corresponding to an absorption effect and a fabrication effect. Here, it is proved that these vectors are not identified, so their interpretation in terms of fabrication and absorption effect is incorrect and even if a normalization was proposed to remove underidentification, this normalization fails and poses many difficulties.. Keywords : Input-Output ; RAS ; Biproportion

JEL-codes: C63 C67 D57 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2000-01
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Citations: View citations in EconPapers (3)

Published in The Annals of Regional Science, 2002, 36, 1, 139-144 et 2004, 38, 4, 741-749

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