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A Comment on “Evaluating the Possibilities for Exchanging Regional Input—Output Coefficients”

It is shown that the testing of the applicability of the RAS technique by comparing actual sectoral gross outputs of a region A with sectoral gross outputs derived from an input–output table of another region B, after the table has been RAS-adjusted to the input–output table of region A, is not a valid procedure. A similar argument holds when this kind of test is applied in a forecasting context where the projected values of sectoral gross outputs of region A are assumed to yield the true estimates. Finally a suggestion is made as to what might be a fruitful way of improving constrained matrix-adjustment techniques.