A Multiregional Planning and Forecasting Model with Special Regard to the Public Sector

Snickars, F. & Granholm, A. (1981). A Multiregional Planning and Forecasting Model with Special Regard to the Public Sector. IIASA Research Report (Reprint). IIASA, Laxenburg, Austria: RR-82-021. Reprinted from Regional Science and Urban Economics, 11 [1981].

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Abstract

Despite the magnitude of the public sector and its rapid growth most multiregional economic models are lacking public sector content. The present paper aims at incorporating some of the roles of the public sector in the regional development. It is done within the framework of a multiregional optimization model for the allocation of private and public investment, production, employment (and population) over economic sectors and regions. By choosing appropriate objective functions, the model may be used for either planning or forecasting purposes. In the model the focus is on the public sector as a service and provision body and as a provider of public infrastructure. Its role as an agent for transfer payments is not stressed. The capacities of the model are illustrated by means of an example concerning Swedish regional development 1977-1983.

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