Entropy estimation and interpretation of the inter-sectoral linkages of Turkish economy based on Leontief input/output model

摘要

Purpose - The purpose of this paper is to address an econometric procedure which revises andrnupdates the technical production coefficients of latest Turkish input/output (I/O) table, as newrninformation about sectoral productions become available.rnDesign/methodology/approach - Both maximum entropy (ME) method, which estimates therntechnical production coefficients directly, and cross entropy (CE) estimation method using the Turkishrn1996 I/O table as prior information are considered. Moreover, some linkage measures both traditionalrnand relatively new ones are calculated and interpreted using the same data.rnFindings - Under squared error measure criterion, CE estimation method using the Turkish 1996 I/Orntable as prior information gives a better statistical fit than the ME method which estimates therncoefficients directly. Also, Dietzenbacher and van der Linden method's linkage values are found to bernin between those of the Chenery and Watanabe, and the Rasmussen methods for both backward orrnforward definitions using the Turkish data.rnResearch limitations/implications - There still remains the job of collecting information aboutrnsectoral productions in the year where updating the latest I/O table is to be undertaken in order torncomplete the design to be used in practice. This paper suggests this vector to be estimated using somernproxy or instrumental variables approaches as a topic for further research.rnPractical implications - During the last ten years in Turkey, the five-year state development plansrnlosing their traditional importance and the free markets replacing them may have partly accounted forrnthe highly infrequent constructions of such tables. However, academic researches continue to use themrnas a basis, and therefore an updating of the latest table using an econometric approach such as that ofrnthe paper may be necessary.rnOriginality/value - If in practice the preparation of a new I/O table is costly and/or difficult withoutrna political need, then an updating scheme may be valuable.