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Contributions to Change in the Input‐Output Model: The Search for Inverse Important Coefficients
Author(s) -
Casler Stephen D.,
Hadlock Darren
Publication year - 1997
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/0022-4146.00050
Subject(s) - inverse , structural change , computer science , inverse problem , econometrics , mathematics , mathematical economics , mathematical optimization , economics , macroeconomics , mathematical analysis , geometry
The relationship between changes in input‐output structural coefficients and changes in the coefficients of the Leontief inverse is explained in a calculus‐based framework. Knowledge of this relationship is essential for understanding how structural changes in one sector are transmitted across the economy, and is useful in forming updates to I‐O tables given limited information. Empirically, we identify those coefficients likely to be the most important in causing inverse changes. We find that a selective and systematic updating procedure can lead to accurate updates without the need for complete data.