Evaluation of the Relative Performance of RAS and Cross-Entropy Techniques for Updating Input-Output Tables of Malaysia

  • M. Yusoff Saari Universiti Putra Malaysia
  • Azman Hassan Universiti Putra Malaysia
  • Muhammad Daaniyall Abd Rahman Universiti Putra Malaysia
  • Azali Mohamed Universiti Putra Malaysia

Abstract

The growing interest in applied general equilibrium models for policy analyses increases the demand for up-to-date input-output tables. Constructing survey-based input-output tables for a recent year is costly and time-consuming. These constraints have led to the emergence of non-survey updating techniques. In this paper, the relative performance of two prominent non-survey techniques designed to update input-output tables, the RAS and cross-entropy, is compared. Results show that the cross-entropy technique is superior to the RAS regardless of the size of matrices. For both techniques, our analyses suggest that the accuracy of estimates improves with a high level of sectoral aggregation.

Author Biographies

M. Yusoff Saari, Universiti Putra Malaysia

Department of Economics, University Putra Malaysia

Azman Hassan, Universiti Putra Malaysia

Department of Economics, University Putra Malaysia

Muhammad Daaniyall Abd Rahman, Universiti Putra Malaysia

Department of Economics, University Putra Malaysia

Azali Mohamed, Universiti Putra Malaysia

Department of Economics, University Putra Malaysia

Published
2017-06-02
How to Cite
SAARI, M. Yusoff et al. Evaluation of the Relative Performance of RAS and Cross-Entropy Techniques for Updating Input-Output Tables of Malaysia. Malaysian Journal of Economic Studies, [S.l.], v. 51, n. 2, p. 217-229, june 2017. ISSN 1511-4554. Available at: <https://mjes.um.edu.my/article/view/2828>. Date accessed: 22 sep. 2017.
Section
Articles