0.008 of getting 0.6 0.7 (ibid., Table 1). ≤ δ ≤ 39. Bonfiglio (2009) presents an alternative regression model for determining the value of δ. He includes variables to capture regional size (RSRP) and the propensity to import from other regions (PROP), as we do, but does not include a measure of the divergence between regional and national proportions of intermediate inputs. Unlike us, he finds an inverse relationship between the optimal and regional size. He also defines the import δ propensity differently. 40. Another way of adjusting for differences between regional and national proportions of intermediate inputs would be to apply Round’s adjustment, whereby each ‘fabrication’ column of the national coefficient matrix is scaled prior to applying LQs (Miller and Blair, 2009, pp. 356357, 361362; Sawyer and Miller, 1983). However, this adjustment presupposes that = 0 in equation (30). Our preferred approach, which we believe to be α both simpler and more comprehensive, is to use the regression model (23) to help determine an appropriate value of δ. 41. This statement is based on the arguments presented in the Introduction. We a priori intend to carry out an empirical analysis to substantiate it and to measure the extent of any improvements in accuracy. REFERENCES Bonfiglio A. (2009) On the parameterization of techniques for representing regional economic structures, 115127. 21, Economic Systems Research Bonfiglio A. and Chelli F. (2008) Assessing the behaviour of non-survey methods for constructing regional inputoutput tables through Carlo simulation, Economic Systems 20, 243258. Research
0.008 of getting 0.6 ≤ δ ≤ 0.7 (ibid., Table 1). 39. Bonfiglio (2009) presents an alternative regression model for determining the value of δ. He includes variables to capture regional size (RSRP) and the propensity to import from other regions (PROP), as we do, but does not include a measure of the divergence between regional and national proportions of intermediate inputs. Unlike us, he finds an inverse relationship between the optimal δ and regional size. He also defines the import propensity differently. 40. Another way of adjusting for differences between regional and national proportions of intermediate inputs would be to apply Round’s ‘fabrication’ adjustment, whereby each column of the national coefficient matrix is scaled prior to applying LQs (Miller and Blair, 2009, pp. 356357, 361362; Sawyer and Miller, 1983). However, this adjustment presupposes that α = 0 in equation (30). Our preferred approach, which we believe to be both simpler and more comprehensive, is to use the regression model (23) to help determine an appropriate value of δ. 41. This statement is based on the a priori arguments presented in the Introduction. We intend to carry out an empirical analysis to substantiate it and to measure the extent of any improvements in accuracy. REFERENCES Bonfiglio A. (2009) On the parameterization of techniques for representing regional economic structures, Economic Systems Research 21, 115127. Bonfiglio A. and Chelli F. (2008) Assessing the behaviour of non-survey methods for constructing regional inputoutput tables through Carlo simulation, Economic Systems Research 20, 243258.
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