Balanced Input-Output Model
From Open Risk Manual
Revision as of 15:56, 28 February 2022 by Wiki admin (talk | contribs)
Definition
Balanced Input-Output Model refers to adjustments that may be necessary to perform on an Input-Output Model that is constructed on the basis of imperfect data to ensure that any applicable fundamental identities are satisfied.
Examples
- Total supply must equal total use in a Supplay And Use Framework
- Total output equals intermediate consumption plus value added
- The RAS Technique is often employed to balance a Social Accounting Matrix
SAMS, by their structural requirements and conventions, e.g., requiring a square transactions matrix with row and column totals equal, are useful for reconciling different sources of data that may be inconsistent.
