NONSURVEY INPUT-OUTPUT ESTIMATION TECHNIQUES: EVIDENCE ON THE STRUCTURE OF ERRORS

ABSTRACT This paper concerns the nature and extent of error introduced to regional input-output multipliers by errors associated with the estimation of regional purchase coefficients (rpc's). Using the Washington State input-output model and computer simulations, estimates of multiplier error are generated for two distinct sources of rpc error. The results indicate that multiplier error from both rpc sources may be significant and support the findings of previous studies which highlight the importance of error introduced to the household purchases column for multiplier accuracy.     

Book reviews

Leonard Blussé. Strange company: Chinese settlers, mestizo women, and the Dutch in VOC Batavia . xiii, 302 pp. Dordrecht: Foris Publications, 1986. (Verhandelingen van het Kononklijk Instituut voor Taal‐, Land‐ en Volkenkunde, 122.) Guilders 35.

John S. Guy. Oriental trade ceramics in South‐East Asia, ninth to sixteenth centuries. With a catalogue of Chinese, Vietnamese, and Thai wares in Australian collections, xiv, 161 pp. Singapore, etc: Oxford University Press, 1986. (Oxford in Asia Studies in Ceramics.) £47.50.     

Income Diffusion and Spatial Econometric Models

This paper considers the development of linked small-area spatial econometric models in which income flows between the areas constitute an important part of model specification. The attributes of income diffusion processes are considered in detail. Both static models and temporal income diffusion models are discussed. The spatial and spatial-temporal autocorrelation functions are derived which provide a measure of the spatial distribution of income. The Green function is also derived as a measure of income impulses through the system of regions. An important aspect of the paper is to relate properties of these functions to key economic parameters in particular propensities to spend locally and to spend nonlocally.