Restrictions in Integrated Econometric+Input-Output Modeling [chapter]

James P. LeSage, Sergio J. Rey
2002 Advances in Spatial Science  
The use of input-output (IO) relations to specify econometric equations for regional employment forecasting has been approached from both Bayesian and frequentist perspectives. While both approaches incorporate the IO information as restrictions in an econometric model, the nature of those restrictions is fundamentally different in each case. In this paper we explore the implications of treating these restrictions as stochastic versus exact. A series of forecasting experiments based on
more » ... s based on quarterly data at the 2-digit level for counties in Ohio are used to examine the relative performance of the Bayesian and non-Bayesian approaches.
doi:10.1007/978-3-662-04786-6_13 fatcat:5slwneg5sbcfhg3yai64qz4t2m