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Bicausative matrices to measure structural change: Are they a good tool?

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  • Louis de Mesnard

    (LATEC , Faculty of Economics, University of Burgundy 2 Bd Gabriel, B.P. 26 611, 21066 DIJON Cedex, France)

Abstract

The causative-matrix method to analyze temporal change assumes that a matrix transforms one Markovian transition matrix into another by a left multiplication of the first matrix; the method is demand-driven when applied to input-output economics. An extension is presented without assuming the demand-driven or supply-driven hypothesis. Starting from two flow matrices X and Y, two diagonal matrices are searched, one premultiplying and the second postmultiplying X, to obtain a result the closer as possible to Y by least squares. The paper proves that the method is deceptive because the diagonal matrices are unidentified and the interpretation of results is unclear.

Suggested Citation

  • Louis de Mesnard, 2000. "Bicausative matrices to measure structural change: Are they a good tool?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 34(3), pages 421-449.
    • Handle: RePEc:spr:anresc:v:34:y:2000:i:3:p:421-449
    Note: Received: November 1998 / Accepted: August 1999
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    Cited by:

    1. Jun Wan & Jae Hong Kim & Geoffrey J D Hewings, 2013. "Inspecting Regional Economic Structural Changes through Linking Occupations and Industries," Environment and Planning A, , vol. 45(3), pages 614-633, March.
    2. Jaewon Lim & Jae Hong Kim, 2019. "Joint Determination of Residential Relocation and Commuting: A Forecasting Experiment for Sustainable Land Use and Transportation Planning," Sustainability, MDPI, vol. 11(1), pages 1-24, January.

    More about this item

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis

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