Evaluation of the relative performance of RAS and cross-entropy techniques for updating input-output tables of Malaysia
The growing interest in applied general equilibrium models for policy analyses increases the demand for up-to-date input-output tables. Constructing survey-based input-output tables for a recent year is costly and time-consuming. These constraints have led to the emergence of non-survey updating tec...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Faculty of Economics & Administration, University of Malaya and Malaysian Economic Association
2014
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| Online Access: | http://psasir.upm.edu.my/id/eprint/37543/1/Evaluation%20of%20the%20relative%20performance%20of%20RAS%20and%20cross.pdf |
| Summary: | The growing interest in applied general equilibrium models for policy analyses increases the demand for up-to-date input-output tables. Constructing survey-based input-output tables for a recent year is costly and time-consuming. These constraints have led to the emergence of non-survey updating techniques. In this paper, the relative performance of two prominent non-survey techniques designed to update input-output tables, the RAS and cross-entropy, is compared. Results show that the cross-entropy technique is superior to the RAS regardless of the size of matrices. For both techniques, our analyses suggest that the accuracy of estimates improves with a high level of sectoral aggregation. |
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