Evaluating the FLQ and AFLQ formulae for estimating regional input coefficients: empirical evidence for the province of C¨®rdoba, Argentina

Tony Flegg (), Leonardo Mastronardi and Carlos Romero
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Tony Flegg: University of the West of England, Bristol

Working Papers from Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol

Abstract: This paper uses survey-based data for the Argentinian province of C¨®rdoba to conduct an empirical test of the performance of the FLQ and AFLQ formulae for estimating regional input coefficients. A comparison is made with conventional methods based on location quotients. The possibility of using prior information about the extent of self-sufficiency of particular sectors is explored. The empirical work employs a range of statistical criteria with contrasting properties, and examines performance in terms of each method¡¯s ability to estimate regional input coefficients, output multipliers and imports. Particular attention is paid to the problem of choosing a value for the unknown parameter ¦Ä in the FLQ and AFLQ formulae. These formulae are found to give the best overall results of the non-survey methods considered in the paper. However, the AFLQ typically produces slightly more accurate results than the FLQ, in line with the findings of previous studies.

Keywords: Regional inputoutput tables; Argentina; Location quotients; FLQ; AFLQ (search for similar items in EconPapers)
Date: 2015-01-08
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