Exposition of the GRAS method

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 o cial 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 a ected by the imposition of additional mathematical assumptions.