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Abstract

Presented at the Second Annual Conference on Global Economic Analysis Recent research in applications of entropy theory to matrix balancing problems in economics has put powerful new tools in the hands of data base developers, but overshadowed some previous findings. We recall earlier findings that the RAS is an entropy-theoretic model. Investigating the properties of a more recently proposed entropy-theoretic model, we find that in general the RAS remains preferable. We show further that the RAS can be obtained also as a generalized cross-entropy model. Finally, we present examples illustrating how entropy-theoretic techniques can extend the RAS to handle a wider range of problems.

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