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Author Info
Erik Dietzenbacher

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Abstract

Recently, Oosterhaven and Stelder (2002, "Journal of Regional Science", 42, 533-543) (OS) addressed the issue of measuring the economic importance of an industry. In practice, the traditional multipliers are commonly multiplied by, for example, the outputs. According to OS, this is a misuse that leads to double counting, a correction for which results in their net multipliers. In this note, I will provide an economic interpretation, which suggests that net multipliers may be a good choice for descriptive purposes. The comment by de Mesnard (2002, "Journal of Regional Science", 42, 545-548) adopts a different viewpoint. Following his approach, I will show that also the common procedure-which was the central point of rejection in OS-has a sound economic interpretation. In its turn, this yields an alternative interpretation for the matrices used in supply-driven input-output models. Copyright Blackwell Publishing Inc. 2005

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.0022-4146.2005.00377.x
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Publisher Info
Article provided by Blackwell Publishing in its journal Journal of Regional Science.

Volume (Year): 45 (2005)
Issue (Month): 2 ()
Pages: 421-426
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Handle: RePEc:bla:jregsc:v:45:y:2005:i:2:p:421-426

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  1. Verspagen, Bart & Nomaler, Onder, 2007. "Knowledge Flows, Patent Citations and the Impact of Science on Technology," UNU-MERIT Working Paper Series 022, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology. [Downloadable!]
    Other versions:
  2. Jan Oosterhaven, 2007. "The net multiplier is a new key sector indicator: reply to De Mesnard’s comment," The Annals of Regional Science, Springer, vol. 41(2), pages 273-283, June. [Downloadable!] (restricted)
  3. Bárbara Díaz & Laura Moniche & Antonio Morillas, 2006. "A Fuzzy clustering approach to the key sectors of the Spanish economy," Economic Systems Research, Taylor and Francis Journals, vol. 18(3), pages 299-318, September. [Downloadable!] (restricted)
  4. Ho Gim & Koonchan Kim, 2009. "A study on the building of a new “output–output model” and its usefulness: based on a comparative analysis of the input–output model," The Annals of Regional Science, Springer, vol. 43(3), pages 807-829, September. [Downloadable!] (restricted)
  5. Louis Mesnard, 2007. "A critical comment on Oosterhaven–Stelder net multipliers," The Annals of Regional Science, Springer, vol. 41(2), pages 249-271, June. [Downloadable!] (restricted)
  6. Argyrios D. Kolokontes & Chrysovalantis Karafillis & Fotios Chatzitheodoridis, 2008. "Argyrios D. Kolokontes, Chrysovalantis Karafillis, Fotios Chatzitheodoridis - Peculiarities and usefulness of multipliers, elasticities and location quotients for the regional development planning: an," Romanian Journal of Regional Science, Romanian Regional Science Association, vol. 2(2), pages 118-133, December. [Downloadable!]
  7. Louis Mesnard, 2007. "Reply to Oosterhaven’s: the net multiplier is a new key sector indicator," The Annals of Regional Science, Springer, vol. 41(2), pages 285-296, June. [Downloadable!] (restricted)
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