Exposition of the GRAS Method

Authors: Adrian Theuma, Kevin Abela

Corresponding: Kevin Abela (kevin.abela.11@um.edu.mt)

Keywords: GRAS, Macro SAM, Matrix Balancing, Minimum-Information Principle

Doi: 10.7423/XJENZA.2021.1.02

Abstract:
The goal of this study is to provide a detailed
insight on the GRAS method put forward by Junius
and Oosterhaven (2003) and its subsequent changes
proposed by Lenzen et al. (2007) and Temurshoev et al.
(2013). Furthermore, the GRAS algorithm provided by
Temurshoev et al. (2013) will be applied on the 2010
Macro SAM for Malta. The totals of the Rest of World
account are revised subject to ocial publicly available
data (Eurostat, 2020). The newly generated Macro
SAM will include updated Rest of World totals such
that it represents more accurately the current account
of the Maltese economy. Although the Rest of World
totals of the newly balanced Macro SAM will conform
to the latest Balance of Payments statistical developments,
the generated SAM elements may not adhere
to publicly available data since additional mathematical
assumptions were imposed. However, this comprehensive
economy-wide data framework can be utilised
by researchers, students and statisticians who are interested
in the Macro SAM with an updated Rest of World
account and are not aected by the imposition of additional
mathematical assumptions.

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