Stochastic Input-Output Analysis: A Simulation Study

In the first part of the paper, the idea of a stochastic input-output model, as conceived by Gerking, is reviewed and criticized; and some extensions and simplifications are then made. The second part seeks to assess the small sample behavior of several regression estimators proposed by Gerking. Since samples available for the construction of regional tables are typically quite small, this Monte Carlo study provides evidence as to which of the proposed estimators is most feasible for the actual empirical construction of regional input-output tables.