Regional Multiplier Analysis: A Demometric Approach

Ledent, J. (1978). Regional Multiplier Analysis: A Demometric Approach. IIASA Research Report. IIASA, Laxenburg, Austria: RR-78-003

Preview

Text RR-78-003.pdf Download (1MB) | Preview

Abstract

This paper reports on the design and testing of an adequate framework for conducting regional multiplier studies in areas experiencing rapid population growth. It puts forward the "demometric" approach, one that applies econometric methods to the analysis of demoeconomic growth.

Two alternative models are proposed here. The first is an aggregate model presenting a demometric revision of the traditional economic base model. The second model, an enlarged version of the first, is characterized by a breakdown of economic activities into nine major sectors. Both models are fitted to data for the rapidly growing metropolitan area of Tucson, Arizona, USA. The models are then used to derive tentative impact and dynamic multipliers which substantiate the role of households as consumers and suppliers of labor in the development of Tucson SMSA.

The major finding is that, for the same level of resources, the second model yields better policy implications than the modified (and therefore also the traditional) economic base model.

Actions (login required)

View Item