Non-Extensive Entropy Econometrics for Low Frequency Series: National Accounts-Based Inverse Problems

Second Bwanakare

Open Access Published by De Gruyter Open Poland 2017

Non-Extensive Entropy Econometrics for Low Frequency Series

National Accounts-Based Inverse Problems

Second Bwanakare

https://doi.org/10.1515/9783110550443

Overview
Contents

About this book

Non-extensive Entropy Econometrics for Low Frequency Series provides a new and robust power-law-based, non-extensive entropy econometrics approach to the economic modelling of ill-behaved inverse problems. Particular attention is paid to national account-based general equilibrium models known for their relative complexity.
In theoretical terms, the approach generalizes Gibbs-Shannon-Golan entropy models, which are useful for describing ergodic phenomena. In essence, this entropy econometrics approach constitutes a junction of two distinct concepts: Jayne’s maximum entropy principle and the Bayesian generalized method of moments. Rival econometric techniques are not conceptually adapted to solving complex inverse problems or are seriously limited when it comes to practical implementation. Recent literature showed that amplitude and frequency of macroeconomic fluctuations do not substantially diverge from many other extreme events, natural or human-related, once they are explained in the same time (or space) scale. Non-extensive entropy is a precious device for econometric modelling even in the case of low frequency series, since outputs evolving within the Gaussian attractor correspond to the Tsallis entropy limiting case of Tsallis q-parameter around unity. This book introduces a sub-discipline called Non-extensive Entropy Econometrics or, using a recent expression, Superstar Generalised Econometrics. It demonstrates, using national accounts-based models, that this approach facilitates solving nonlinear, complex inverse problems, previously considered intractable, such as the constant elasticity of substitution class of functions. This new proposed approach could extend the frontier of theoretical and applied econometrics.

Author / Editor information

Second, Bwanakare, University of Information Technology and Management, Rzeszow, Poland

Topics

Frontmatter Publicly Available Download PDF	i
Contents Publicly Available Download PDF	v
Acknowledgements Open Access Download PDF	ix
Summary Open Access Download PDF	x
PART I: Generalities and Scope of the Book
1 Generalities Open Access Download PDF	2
PART II: Statistical Theory of Information and Generalised Inverse Problem
1 Information and its Main Quantitative Properties Open Access Download PDF	16
2 Ill-posed Inverse Problem Solution and the Maximum Entropy Principle Open Access Download PDF	22
Part III: Updating and Forecasting Input-Output Transaction Matrices
1 Introduction Open Access Download PDF	54
2 The System of National Accounts Open Access Download PDF	55
3 The Input-Output (IO) Table and its Main Application Open Access Download PDF	56
PART IV: Social Accounting Matrix
1 Position of the Problem Open Access Download PDF	88
2 A SAM as a Walrasian Equilibrium Framework Open Access Download PDF	90
3 The Social Accounting Matrix (SAM) Framework Open Access Download PDF	93
4 Balancing a SAM Open Access Download PDF	97
5 A SAM and Multiplier Analysis: Economic Linkages and Multiplier Effects Open Access Download PDF	117
PART V: Computable General Equilibrium Models
1 A Historical Perspective Open Access Download PDF	134
2 The CGE Model Among Other Models Open Access Download PDF	137
3 Optimal Behaviour And The General Equilibrium Model Open Access Download PDF	138
4 From a SAM to a CGE Model: a Cobb-Douglas Economy Open Access Download PDF	143
5 Estimating the CGE Model Through the Maximum Entropy Principle Open Access Download PDF	151
Part VI: From Equilibrium to Real World Disequilibrium: An Environmental Model
1 Introduction Open Access Download PDF	176
2 Extending to an Environmental Model Open Access Download PDF	179
3 Compensatory and Equivalent Variations: Two Types of Welfare Measurement Open Access Download PDF	185
1 Concluding Remarks Open Access Download PDF	193
Appendix
Annex C. Computational Aspects of Using GAMS Open Access Download PDF	195
Annex D. Recovery of Pollutant Emissions by Industrial Sector and Region: an Instructional Case Open Access Download PDF	201
Index of Subject Open Access Download PDF	205
Index of Authors Open Access Download PDF	206

Language: English
Publisher: De Gruyter Open Poland
Pages
- Main content: 218
Illustrations
- Illustrations: 2
- Coloured Illustrations: 5
- Tables: 18
- Coloured Tables: 3
Keywords: generalized cross-entropy; general equilibrium macro-economic model; econometrics

eBook

Published: July 24, 2017
ISBN: 9783110550443

Hardcover

Published: July 24, 2017
ISBN: 9783110550436