SOME CONDITIONS OF MACROECONOMIC STABILITY IN MULTIREGIONAL MODELS

The investigation was a part of a comparative study of the three multi-regional input-output (MRIO) models: column coefficient, row coefficient, and gravity coefficient. The objectives of the research were two-fold: (1) to examine the causes underlying negative values in the inverse generated by the row coefficient model, as well as negative projections generated by the model; and (2) to explain why the column coefficient model did not present any of these problems. The results of this research provide: (1) construction rules for the regional trade coefficient matrix that ensure that the projections generated by MRIO models will be non-negative; (2) on the basis of these rules, a test of regional technology and regional trade data that ensures non-negative projections for well-constructed NRIO models; and (3) an explanation of the malfunction of the row coefficient model, which concentrates on the violation of the rules. Finally, the policy implications of this investigation extend the conclusions of Hawkins and Simon from the single-region economy to the multiregional economy: if the production system is internally consistent, it will be consistent with any schedule of consumption goods, the latter representing a set of policy variables.

  • Supplemental Notes:
    • (PC A04/MF A01)
  • Corporate Authors:

    Massachusetts Institute of Technology

    Department of Urban Studies and Planning, 77 Massachusetts Avenue
    Cambridge, MA  USA  02139

    Department of Transportation

    Office of University Research, 1200 New Jersey Avenue, SE
    Washington, DC  USA  20590
  • Authors:
    • Bon, R
  • Publication Date: 1975-9

Media Info

  • Pagination: 69 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00146459
  • Record Type: Publication
  • Source Agency: National Technical Information Service
  • Report/Paper Numbers: DOT/TST-76/61 Final Rpt.
  • Contract Numbers: DOT-OS-30104
  • Files: NTIS, TRIS, USDOT
  • Created Date: Feb 16 1977 12:00AM