A general weighted least squares approach for the projection of input–output tables. Issue 4 (2nd October 2017)

• Record Type: Journal Article
• Authors: Poissonnier, Aurélien
• Is Part Of: Economic systems research. Volume 29:Issue 4(2017)
• Page Start: 557
• Page End: 565
• Publication Date: 2017-10-02
• Subjects: Input–output -- benchmarking -- RAS method -- matrix projection; Input-output analysis -- Periodicals; 339.23
• DOI: 10.1080/09535314.2017.1304360
• Languages: English
• ISSNs: 0953-5314

Abstract

ABSTRACT: In the context of input–output analysis, it is often necessary to update a matrix for a date when only the sum of its columns and rows are known. This projection problem is quite similar to temporal disaggregation. I borrow from this literature a class of solutions for which the exact result can be implemented without iteration. These solutions minimize the adjustment made to the out-of-date matrix and as such can be said optimal according to a chosen criteria. The framework I expose is flexible enough to encompass many of the existing methods and develop new ones. I propose one of such methods to project a matrix between two given benchmarks. I exemplify the technique on 35 years of input–output tables for France and show in particular that the issue of negative cells can be avoided.