Comparative Stability Analysis of Multiregional Input-Output Models: Column, Row, and Leontief-Strout Gravity Coefficient Models

Abstract

This paper provides the necessary and sufficient conditions on the regional trade matrices that ensure that a generalized multiregional input-output (MRIO) model will be convergent. The three MRIO models are examined using the above conditions, and it is demonstrated that the Chenery-Moses column coefficient model satisfies them, whereas the opposite is true of the row coefficient and Leontief-Strout point-estimate gravity coefficient models. This evaluation of the three MRIO models confirms the results of empirical testing.