UPPER BOUNDS ON THE SIZES OF INTERREGIONAL FEEDBACKS IN MULTIREGIONAL INPUT‐OUTPUT MODELS*

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Abstract
Upper bounds are presented for a measure of the overall percentage error caused in a multiregional input‐output model when interregional feedback effects are ignored. This error figure is thus a measure of the magnitude of interregional linkages. The upper bounds are expressed as a function of the levels of self‐sufficiency in the regions in the model and of the norms of the regional technical coefficients matrices. Experimental results are presented for a variety of examples that are thought to reflect real‐world situations, and it is clear that in many cases the upper bound (and hence the error) is extremely small. The implication is that single‐region input‐output models may be adequate for a variety of questions.