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Reconciliation Techniques in Input-Output Analysis: Some Comparisons and Implications

Department of Economics at the University of Queensland

D. McGaurr

School of Business Studies, Darling Downs Institute of Advanced Education, Toowoomba

The paper describes a number of reconciliation techniques adopted in the construction of regional input-output tables and compares the multiplier and output projections from reconciled and unreconciled tables. The unreconciled tables considered are the rows only and columns only tables: the reconciled tables are those based upon arithmetic means, geometric means, two types of weighted averages and the Friedlander and RAS techniques. By comparing estimates of multipliers and outputs derived from these procedures with 'real' values based upon data for central Queensland and Toowoomba, the authors are able to demonstrate the range of results derived from the eight methods and the overall suitability of the weighted RAS method for most purposes.

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