Restrictions in Integrated Econometric+Input-Output Modeling
Working with regional time-series on employment at the industry level often results in short time-series containing quarterly observations. Attempts to introduce interindustry and interregional variation into an econometric model produce serious degrees of freedom problems. The problem takes the form of a model containing a large number of parameters relating interregional and interindustry entities in the model relative to the amount of sample data available to estimate these parameters. For this reason researchers have attempted to use restrictions on parameters in these models.
KeywordsForecast Accuracy Forecast Horizon Related Industry Bayesian Model Average Forecast Experiment
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