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Normalizing biproportional methods

Author

Listed:
  • Louis de Mesnard

    (University of Dijon, LATEC , Faculty of Economics, 2 Bd Gabriel, F-21066 Dijon Cedex, France)

Abstract

Biproportional methods are used to update matrices: the projection of a matrix Z to give it the column and row sums of another matrix is R Z S, where R and S are diagonal and secure the constraints of the problem (R and S have no signification at all because they are not identified). However, normalizing R or S generates important mathematical difficulties: it amounts to put constraints on Lagrange multipliers, non negativity (and so the existence of the solution) is not guaranteed at equilibrium or along the path to equilibrium.

Suggested Citation

  • Louis de Mesnard, 2002. "Normalizing biproportional methods," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 36(1), pages 139-144.
    • Handle: RePEc:spr:anresc:v:36:y:2002:i:1:p:139-144
    Note: Received: June 2001/Accepted: September 2001
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    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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