MRIOModel.PDF

An Evaluation of Input-Output Aggregation Errors Using a New MRIO Model* JiYoung Park** Von Kleinsmid Center 382 School of Policy, Planning, and Development University of Southern California Los Angeles, CA 90089-0001 Email: jiyoungp@ Phone: (213) 821-1351 * An earlier version of this paper was presented at the 52nd annual meetings of the North American Regional Science Council, Las Vegas, NV, November 10, 2005. ** The author wishes to acknowledge the intellectual support of his mentors, Profs. Peter Gordon, James E. Moore II and Harry W. Richardson as well as colleague, ChangKeun Park. An Evaluation of Input-Output Aggregation Errors Using a New MRIO Model Studies of error in multi-regional input-output (MRIO) models have been focused on spatial aggregation problems on the assumption that two MRIO models developed by Polenske (1980) and Jack Faucett Associates (1983) estimate direct and indirect effects accurately. Two empirical studies based on these MRIO models reported that spatially aggregated MRIO models, consisting of a target region and others, produce small biases. However, before studying spatial aggregation errors, it was necessary to verify that MRIO-type models can be substituted for an aggregate U.S. Input