EMPIRICAL TESTS OF SOME SEMI-SURVEY UPDATE PROCEDURES APPLIED TO RECTANGULAR INPUT-OUTPUT TABLES*

ABSTRACT. This paper examines the RAS, Mc Menamin and Haring, and Lagrange-multiplier update methods in the context of the dual accounting system of the rectangular input-output model. The motivation was to determine if the additional information contained in the dual system is exploitable, while maintaining the integrity of the rectangular structure with all its advantages. Tests were conducted on the performance of the various algorithms for a derivative Leontief model relative to their performance on the rectangular structure. The results obtained for rectangular tables were generally better than those obtained for the more conventional Leontief ones.     

DIRECTIONS FOR DIVERSIFICATION WITH AN APPLICATION TO SASKATCHEWAN*

ABSTRACT. Traditional models of regional diversification do not capture the trade-off between stability and living standards. In this paper, we characterize regions as open activity models subjected to both productivity and price shocks. We then partially rank small diversification policies by the direction in which they point away from the current industrial structure in mean-variance space. Some general patterns emerge. In particular, diversification for regional self-sufficiency and away from regional comparative advantage may be undesirable.