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Measuring Regional Multipliers: a Comparison between two Different Methodologies for the case of the italian Regions

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  • Alessandra Faggian
  • Bianca Biagi

Abstract

This paper focuses on theory and methodology in estimating Keynesian regional multipliers. After introducing the concept of Keynesian multipliers at both national and regional level and describe the database used, two methodologies are compared and applied to the case of the Italian regions: the Marginal propensities method (MPM) and the Aggregate leakages method (ALM). The higher multipliers values in Southern Italy, resulting from the application of both methodologies, are consistent with similar previous findings and appear to be related to the degree of openness of the local economy, the availability of resources and their marginal productivity, the level of wealth, income distribution and the consequent different consumption patterns.

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Bibliographic Info

Article provided by FrancoAngeli Editore in its journal SCIENZE REGIONALI.

Volume (Year): 2003/1 (2003)
Issue (Month): 1 ()
Pages:

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Handle: RePEc:fan:scresc:v:html10.3280/scre2003-001002

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  1. Stefano Casini Benvenuti & Giandemetrio Marangoni, 1999. "Infrastructure and Performance of the Italian Economic System," Economic Systems Research, Taylor & Francis Journals, vol. 11(4), pages 439-455.
  2. Sinclair, M Thea & Sutcliffe, Charles M S, 1983. "Injection Leakages, Trade Repercussions and the Regional Income Multiplier: An Extension," Scottish Journal of Political Economy, Scottish Economic Society, vol. 30(3), pages 275-86, November.
  3. R. Paci & A. Saba, 1997. "The empirics of regional Economic growth in italy. 1951-1993," Working Paper CRENoS 199701, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  4. R. Paci & S. Saddi, 2002. "Capitale pubblico e produttività nelle regioni italiane," Working Paper CRENoS 200201, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  5. R. Paci & F. Pigliaru, 1998. "Growth and sectoral dynamics in the Italian regions," Working Paper CRENoS 199803, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  6. Lever, W F, 1975. "Regional Multipliers and Demand Leakages at Establishment Level: A Reply," Scottish Journal of Political Economy, Scottish Economic Society, vol. 22(1), pages 103-06, February.
  7. Sinclair, M Thea & Sutcliffe, Charles M S, 1982. "Keynesian Income Multipliers with First and Second Round Effects: An Application to Tourist Expenditure," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 44(4), pages 321-38, November.
  8. Black, Philip A, 1981. "Injection Leakages, Trade Repercussions and the Regional Income Multiplier," Scottish Journal of Political Economy, Scottish Economic Society, vol. 28(3), pages 227-35, November.
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