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NoteAbout the Concept of "Net Multipliers"

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  • Louis de Mesnard

Abstract

Net multipliers, as introduced by Oosterhaven and Stelder (2002) accept outputs as entries instead of final demand. They are found by multiplying ordinary multipliers by the final demand ratio over the sector's output. This pragmatic solution suffers from ratio instability over time. The alternative net multipliers proposed here are based on the interpretation of the Leontief inverse matrix for the effects generated at each round. The new solution is not sensitive to the size of impacts. Now net multiplier is equal to the corresponding ordinary multiplier minus one, and the ordering of multipliers is unchanged. Copyright 2002 Blackwell Publishers Inc.

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Article provided by Wiley Blackwell in its journal Journal of Regional Science.

Volume (Year): 42 (2002)
Issue (Month): 3 ()
Pages: 545-548

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Handle: RePEc:bla:jregsc:v:42:y:2002:i:3:p:545-548

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Cited by:
  1. Ngaio Hotte & U. Sumaila, 2014. "How much could a tanker spill cost British Columbians?," Environment, Development and Sustainability, Springer, vol. 16(1), pages 159-180, February.
  2. Gunnar Lindberg, 2011. "On the appropriate use of (input-output) coefficients to generate non-survey regional input-output tables: Implications for the determination of output multipliers," ERSA conference papers ersa10p800, European Regional Science Association.
  3. Ferran Sancho, 2012. "Some Conceptual Difficulties Regarding 'Net' Multipliers," UFAE and IAE Working Papers 910.12, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).

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