What is it about?
Back in the day, some innovative economists combined fancy inter-industry analysis with econometric frameworks. This merge had many regional economists hooked on! Now, many studies have emerged, all about using this innovative integrated framework to understand regional economies. They all have different ways of merging the input-output and econometric models. The goal is to get the best of both worlds and make some fancy predictions. This study? Well, it takes an attempt at using a technique called intersectoral demand variable (ISDV) to mix input-output analysis with a time-series model. We picked the economy of Illawarra in Australia for our experiment. And... The result is a super-duper dynamic model that's pretty good at predicting employment in different sectors. It's like having a crystal ball for the job market!
Featured Image
Photo by Jeremy Bishop on Unsplash
Why is it important?
This study mixed input-output breakdown of economy with time-series model to predict jobs in Illawarra, Australia. And voila! They made a fairly accurate model. It's like having a wizard predicting the job market in the Illawarra!
Perspectives
I thoroughly enjoyed writing this article because it was a brilliant opportunity to contribute to the handful of studies on regional economics in Australia. Interestingly, this article helped us form meaningful collaborations with many wonderful economists around the globe and sparked my interest in other types of econometric models. It has been a fulfilling journey spurred by the impact of this publication.
Dr Ashkan Masouman
University of Ottawa
Read the Original
This page is a summary of: Regional economic modelling through an embedded econometric–inter-industry framework, Regional Studies, September 2017, Taylor & Francis,
DOI: 10.1080/00343404.2017.1363389.
You can read the full text:
Contributors
The following have contributed to this page
