Abstract
Recent research shows a renewed interest in the properties of non-survey updates of input-output tables and social accounting matrices (SAM). Along with the scaling RAS method, new procedures related to entropy minimization and other metrics have been examined. Whether they will replace or complement the RAS method is an open question. The performance of the updating procedures has been tested with proximity measures to a reference input-output table or SAM, but we look at the performance of three updating mechanisms by comparing the simulation results from adopting alternative databases for the calibration of a reference CGE model.
Highlights
Most often the data in a social accounting matrix (SAM) are used to implement empirical multisectoral and computable general equilibrium (CGE) models, which are in turn used to perform economic analyses and policy simulations
Cross entropy comes in second position when we look at prices; when we look at activity levels, cross entropy and cosine similarity alternate shift positions depending on the tax simulation
Instead of focusing exclusively on comparing the resulting updated matrices, we examined the implications of adopting each competing SAM in the numerical implementation of a regional CGE model
Summary
Most often the data in a social accounting matrix (SAM) are used to implement empirical multisectoral and computable general equilibrium (CGE) models, which are in turn used to perform economic analyses and policy simulations. The quality of data and/or its timeliness are of critical relevance in appraising and evaluating model results and to endowing them with increased credibility before policy makers. Data of the kind needed in multisectoral modeling are not produced in a timely and regular way by statistical offices. Indirect ways out of this problem do exist in the form of updating techniques that permit the projection of a base year SAM. The SAM updating problem is nothing but a particular case of the well-known matrix-balancing problem of the linear algebra literature (Rothblum and Schneider 1989; Schneider and Zenios 1990)
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