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Coefficient stability and predictability in input-output models: a comparative analysis for the Netherlands

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  • Erik Dietzenbacher
  • Alex Hoen

Abstract

Following the work of Bon, this article compares the stability of two types of input-output models. These are, the Leontief (or demand-driven) model and the Ghosh (or supply-driven) model. The empirical results are based on a times series of annual input-output tables for the Netherlands, covering the period 1948-84. Three types of analysis are carried out. The first to evaluate the stability of the models' underlying coefficients over time. The second to investigate the forecasting behaviour when there is perfect foresight with respect to the models' exogenous variables. The third to examine the predictability of the models, absent of perfect foresight.

Suggested Citation

  • Erik Dietzenbacher & Alex Hoen, 2006. "Coefficient stability and predictability in input-output models: a comparative analysis for the Netherlands," Construction Management and Economics, Taylor & Francis Journals, vol. 24(7), pages 671-680.
    • Handle: RePEc:taf:conmgt:v:24:y:2006:i:7:p:671-680
    DOI: 10.1080/01446190600567985
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    Cited by:

    1. Rodrigo Mesa-Arango & Badri Narayanan & Satish V. Ukkusuri, 2019. "The Impact of International Crises on Maritime Transportation Based Global Value Chains," Networks and Spatial Economics, Springer, vol. 19(2), pages 381-408, June.
    2. Richard Wood, 2011. "Construction, Stability And Predictability Of An Input-Output Time-Series For Australia," Economic Systems Research, Taylor & Francis Journals, vol. 23(2), pages 175-211.
    3. Nicolas Garrido & Jeffrey Morales, 2023. "An analysis of the effect of fiscal expenditure on the income distribution of Chilean households," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 12(1), pages 1-19, December.
    4. Joya, Omar & Rougier, Eric, 2019. "Do (all) sectoral shocks lead to aggregate volatility? Empirics from a production network perspective," European Economic Review, Elsevier, vol. 113(C), pages 77-107.
    5. Mizgajski Jan T., 2012. "The Impact of Polish-German Trade Flows on CO2 Emissions," Folia Oeconomica Stetinensia, Sciendo, vol. 11(1), pages 152-164, January.
    6. López, Luis-Antonio & Tobarra, Maria-Angeles & Cadarso, Maria-Ángeles & Gómez, Nuria & Cazcarro, Ignacio, 2022. "Eating local and in-season fruits and vegetables: Carbon-water-employment trade-offs and synergies," Ecological Economics, Elsevier, vol. 192(C).
    7. Esteban Fernandez-Vazquez, 2015. "Empirical Estimation Of Non-Linear Input--Output Models: An Entropy Econometrics Approach," Economic Systems Research, Taylor & Francis Journals, vol. 27(4), pages 508-524, December.
    8. Sunggoan Choi & Haemyoung Ji & Xiaoyun Zhao, 2014. "Identifying key sectors using regional input-output model at sub-national level," ERSA conference papers ersa14p995, European Regional Science Association.
    9. Rocco, Matteo V. & Golinucci, Nicolò & Ronco, Stefano M. & Colombo, Emanuela, 2020. "Fighting carbon leakage through consumption-based carbon emissions policies: Empirical analysis based on the World Trade Model with Bilateral Trades," Applied Energy, Elsevier, vol. 274(C).
    10. Saari, M. Yusof & Dietzenbacher, Erik & Los, Bart, 2016. "The impacts of petroleum price fluctuations on income distribution across ethnic groups in Malaysia," Ecological Economics, Elsevier, vol. 130(C), pages 25-36.

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