Variation of Input‐output Coefficients for Different Levels of Aggregation†

Karaska, Gerald J.

doi:10.1111/j.1467-9787.1968.tb01326.x

Cited by 21 publications

(4 citation statements)

References 3 publications

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“…As an extension of the arguments in the previous subsection, aggregation error tends to be smaller for highly diversified economies like that of Philadelphia, as suggested by the work of Karaska (1968). A corollary to this is that models of regional economies that are more self-sufficient will also yield smaller errors.…”

Section: Aggregation Diversification and Self-sufficiencymentioning

confidence: 67%

A Study of the Role of Regionalization in the Generation of Aggregation Error in Regional Input –Output Models

Lahr

Stevens

2002

Journal of Regional Science

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ABSTRACT.Although the need for aggregation in input-output modeling has diminished with the increases in computing power, an alarming number of regional studies continue to use the procedure. The rationales for doing so typically are grounded in data problems at the regional level. As a result many regional analysts use aggregated national input-output models and trade-adjust them at this aggregated level. In this paper, we point out why this approach can be inappropriate. We do so by noting that it creates a possible source of model misapplication (i.e., a direct effect could appear for a sector where one does not exist) and also by finding that a large amount of error (on the order of 100 percent) can be induced into the impact results as a result of improper aggregation. In simulations, we find that average aggregation error tends to peak at 81 sectors after rising from 492 to 365 sectors. Perversely, error then diminishes somewhat as the model size decreases further to 11 and 6 sectors. We also find that while region-and sector-specific attributes influence aggregation error in a statistically significantly manner, their influence on the amount of error generally does not appear to be large.

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Section: Aggregation Diversification and Self-sufficiencymentioning

confidence: 67%

A Study of the Role of Regionalization in the Generation of Aggregation Error in Regional Input –Output Models

Lahr

Stevens

2002

Journal of Regional Science

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“…This question has been explored , inter alia, by Karaska (1968), Doeksen andLittle (1968), Tiebout (1969), Carter (1970), Williamson (1970), Hewings (1972), andStover (1994). The results and conclusions are mixed.…”

Section: Introductionmentioning

confidence: 87%

Impacts of Aggregation on Relative Performances of Nonsurvey Updating Techniques And Intertemporal Stability of Input–Output Coefficients

Jalili

2006

Econ Change

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In many instances, and for variety of reasons, input–output researchers are compelled to both employ mechanical techniques to update older survey-based tables as well as using more aggregated ones. This combination, however, gives rise to several concerns. The present paper is an attempt to investigate two such questions. First, the effects of aggregation on the accuracy ranking of selected updating methods, and second, the effects of aggregation on intertemporal stability of the input–output coefficients. To probe these issues, three updating methods were selected. These methods are NAÏVE or constant coefficient hypothesis, RAS or biproportional method, and LaGrangian optimization technique. Two survey-based tables from the former Soviet Union along with the selected updating techniques are used to generate updated target year’s direct and inverse transaction matrices at four aggregation levels. Comparison of the resultant estimates at these four levels of aggregation with their counterparts in the actual benchmark table reveals that a higher level of aggregation neither affects the rankings of the updating methods nor does it universally and unequivocally leads to a higher degree of intertemporal stability of input–output coefficients. Copyright Springer Science+Business Media, Inc. 2005aggregation, input–output coefficients, intertemporal stability of coefficients, LaGrangian, RAS, updating methods,

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“…Bourque, 1969) For example, in Garnick's (1970) study of Washington the mean income multiplier was 1.99 but thirty-six of the fifty sectors had values within the range 1-50-2-50 and many of the sectors with values exceeding 2.50 were strongly orientated towards raw materials sources, such as meat and dairy products, sawmilling, pulpmills and clay products which could not be classed as 'mobile' industry capable of diversion to depressed regions. It may be, however, that the threedigit MLH sectoral classification is an inappropriate level at which to study the regional impact of incoming industries because of the diversity of establishments and processes which may fall within a single class (Karaska, 1968). In consequence the most appropriate level of study may be the individual establishment rather than the industrial sector for two reasons.…”

Section: )mentioning

confidence: 99%

Regional Multipliers and Demand Leakages at Establishment Level*

Lever¹

1974

Scottish J Political Eco

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Variation of Input‐output Coefficients for Different Levels of Aggregation†

Cited by 21 publications

References 3 publications

A Study of the Role of Regionalization in the Generation of Aggregation Error in Regional Input –Output Models

A Study of the Role of Regionalization in the Generation of Aggregation Error in Regional Input –Output Models

Impacts of Aggregation on Relative Performances of Nonsurvey Updating Techniques And Intertemporal Stability of Input–Output Coefficients

Regional Multipliers and Demand Leakages at Establishment Level*

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