Article
A multiplier evaluation of primary factors supply–shocks in a regional economy
Papers in Regional Science
(2019)
Abstract
Demand‐side multipliers have ruled within multisectorialmodels as the main indicators for policy effectiveness andkey‐sector determination both in linear interindustry analysisand in non‐linear applied general equilibrium models. In thispaper we shift the perspective to supply‐side injections bystudying the effects of marshalling additional primary factors(K, L) that give rise to a general resource reallocation. Weobtain estimates of supply multipliers by numerically approx-imating the underlying and unobservable general equilibriumJacobian matrix. These estimates provide complementaryinformation to standard demand multipliers. We illustratethe methodology using an empirical general equilibriummodel for the region of Andalusia, Spain
Disciplines
Publication Date
2019
DOI
https://doi.org/10.1111/pirs.12443
Citation Information
Ferran Sancho, Alejandro Cardenete and Mari Carmen Lima. "A multiplier evaluation of primary factors supply–shocks in a regional economy" Papers in Regional Science (2019) Available at: http://works.bepress.com/ferran_sancho/73/