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Integrating Regional Econometric and Input—Output Models: An Evaluation of Embedding Strategies

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  • S J Rey

    (Department of Geography, San Diego State University, San Diego, CA 92182-4493, USA)

Abstract

A number of integration strategies that embed input-output relations within dynamic econometric models of regional employment determination are examined. By viewing the alternative approaches in the literature as specific cases of restricted estimation a number of important methodological issues associated with model misspecification are identified and examined analytically. Additional insight as to the importance of these issues is provided by means of a series of Monte Carlo simulations. The results suggest that the relative performances of the various approaches towards integration are sensitive to errors associated with the form of the intersectoral linkages, labor-productivity coefficients, and regional purchase coefficients. The previous finding that the embedding strategies provide indicators of the strength of regional intersectoral linkages is shown to be potentially misleading.

Suggested Citation

  • S J Rey, 1997. "Integrating Regional Econometric and Input—Output Models: An Evaluation of Embedding Strategies," Environment and Planning A, , vol. 29(6), pages 1057-1072, June.
    • Handle: RePEc:sae:envira:v:29:y:1997:i:6:p:1057-1072
    DOI: 10.1068/a291057
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    References listed on IDEAS

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    1. Glennon, Dennis & Lane, Julia & Johnson, Stanley, 1987. "Regional econometric models that reflect labor market relations," International Journal of Forecasting, Elsevier, vol. 3(2), pages 299-312.
    2. Ralston, Scott N & Hastings, Steven E & Brucker, Sharon M, 1986. "Improving Regional I-O Models: Evidence against Uniform Regional Purchase Coefficients across Rows," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 20(1), pages 65-80, March.
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    Cited by:

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    2. Christa Court & Randall W. Jackson, 2010. "Time Dynamics and the Introduction of New Technologies within IO Analysis," Working Papers Working Paper 2010-03, Regional Research Institute, West Virginia University.
    3. Midmore, Peter & Whittaker, Julie, 2000. "Economics for sustainable rural systems," Ecological Economics, Elsevier, vol. 35(2), pages 173-189, November.
    4. Adam Rose & Dan Wei & Noah Dormady, 2011. "Regional macroeconomic assessment of the Pennsylvania Climate Action Plan," Regional Science Policy & Practice, Wiley Blackwell, vol. 3(4), pages 357-379, November.
    5. Randall Jackson & Sergio Rey & Péter Járosi, 2016. "Object Orientation, Open Regional Science,and Cumulative Knowledge Building," Working Papers Working Paper 2016-02, Regional Research Institute, West Virginia University.
    6. repec:rri:wpaper:201003 is not listed on IDEAS
    7. Shields, Martin & Deller, Steven C. & Stallmann, Judith I., 2001. "Comparing The Impacts Of Retiree Versus Working-Age Families On A Small Rural Region: An Application Of The Wisconsin Economic Impact Modeling System," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 30(1), pages 1-12, April.
    8. Dan Wei and Adam Rose, 2014. "Macroeconomic Impacts of the California Global Warming Solutions Act on the Southern California Economy," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 2).
    9. Lawrence, Michael F. & Wei, Dan & Rose, Adam & Williamson, Scott & Cartwright-Smith, Devon, 2017. "Macroeconomic impacts of proposed climate change mitigation strategies for transportation in Southern California," Research in Transportation Economics, Elsevier, vol. 61(C), pages 56-69.
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