6533b852fe1ef96bd12ab3a7

RESEARCH PRODUCT

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

Louis De Mesnard

subject

input-outputjel:C63économieeconomic theoryjel:C67economics[SHS.ECO]Humanities and Social Sciences/Economics and Financejel:D57biproportiongestion[ SHS.ECO ] Humanities and Social Sciences/Economies and financesmanagement economics[SHS.ECO] Humanities and Social Sciences/Economics and Financemanagement

description

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

https://hal.archives-ouvertes.fr/hal-01527142