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Regional economic modelling through an embedded econometric–inter-industry framework

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  • Ashkan Masouman
  • Charles Harvie

Abstract

After the incorporation of an inter-industry analysis into an econometric framework was pioneered 40 years ago, there has been a growing number of studies in the literature focused on applying such an integrated framework at the subnational level. Models in the literature apply different strategies and structures to merge input–output (IO) and econometric models. The objective of the merged framework is to capitalize on the merits of both IO and time-series models. This paper presents an attempt to apply an intersectoral demand variable (ISDV) technique to embed IO analysis into a time-series model to investigate the economy of Illawarra in New South Wales, Australia. The result is a dynamic intersectoral model that provides high accuracy in forecasting sectoral employment.

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  • Ashkan Masouman & Charles Harvie, 2018. "Regional economic modelling through an embedded econometric–inter-industry framework," Regional Studies, Taylor & Francis Journals, vol. 52(9), pages 1237-1249, September.
    • Handle: RePEc:taf:regstd:v:52:y:2018:i:9:p:1237-1249
    DOI: 10.1080/00343404.2017.1363389
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    Cited by:

    1. Ashkan Masouman & Charles Harvie, 2020. "Forecasting, impact analysis and uncertainty propagation in regional integrated models: A case study of Australia," Environment and Planning B, , vol. 47(1), pages 65-83, January.
    2. Jibo Chen & Keyao Chen & Guizhi Wang & Rongrong Chen & Xiaodong Liu & Guo Wei, 2019. "Indirect Economic Impact Incurred by Haze Pollution: An Econometric and Input–Output Joint Model," IJERPH, MDPI, vol. 16(13), pages 1-14, July.

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