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Supply and Demand Interaction in Integrated Econometric and Input-Output Models

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  • Paul M. Beaumont

    (Supercomputer Computations Research Institute, Florida State University, Tallahassee, Florida 32306 USA)

Abstract

Integrated input-output and econometric models are often claimed to be superior to either input-output or econometric models alone by virtue of capturing supply and demand interactions. This claim is examined by considering the structure of existing integrated models. It was found that existing integrated models do not offer supply and demand interaction. This is because neither of the major components of the integrated models offer an adequately specified supply side. Integrating two demand-driven models does not produce a model with supply and demand interaction. The prospects that integrated models will improve on this score, particularly at the subnational level, are not high. Rather, it is suggested that the integrated modeling strategies be skipped over and a computable general equilibrium modeling strategy be adopted.

Suggested Citation

  • Paul M. Beaumont, 1990. "Supply and Demand Interaction in Integrated Econometric and Input-Output Models," International Regional Science Review, , vol. 13(1-2), pages 167-181, April.
    • Handle: RePEc:sae:inrsre:v:13:y:1990:i:1-2:p:167-181
    DOI: 10.1177/016001769001300111
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    References listed on IDEAS

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    2. JunHo Yeo & David Holland, 2004. "Economic Growth in Washington: An Examination of Migration Response and a Test of Model Accuracy," International Regional Science Review, , vol. 27(2), pages 205-237, April.
    3. L van der Laan, 1996. "A Review of Regional Labour Supply and Demand Forecasting in the European Union," Environment and Planning A, , vol. 28(12), pages 2105-2123, December.
    4. Sergio J. Rey, 1998. "The Performance of Alternative Integration Strategies for Combining Regional Econometric and Input-Output Models," International Regional Science Review, , vol. 21(1), pages 1-35, April.
    5. Fernando Perobelli & Rogério Silva de Mattos & Eduardo Amaral Haddad & Marcos Paulo Novaes Silva, 2007. "An integrated econometric + input-output model for the Brazilian economy: an application to the energy sector," EcoMod2007 23900065, EcoMod.
    6. 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.
    7. Paul B. Siegel & Jeffrey Alwang & Thomas G. Johnson, 1995. "Decomposing Sources of Regional Growth with an Input-output Model: A Framework for Policy Analysis," International Regional Science Review, , vol. 18(3), pages 331-353, July.

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