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Decomposition Analysis: An Extended Theoretical Foundation and its Application to the Study of Regional Income Growth in Denmark

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  • Chris Jensen-Butler

    (School of Economics and Finance, University of St Andrews, St Andrews, Fife KY16 9AL, Scotland)

  • Bjarne Madsen

    (Institute of Local Government Studies, AKF, Nyropsgade 37, DK-1602 Copenhagen V, Denmark)

Abstract

The paper presents an extended interregional social accounting matrix (SAM) framework, derived from a Danish interregional computable general equilibrium (CGE) model, as the basis for a decomposition of regional income growth in Denmark in the period 1980–98. The decomposition analysis indicates that there is some evidence for a reversal in the trend of location of economic activity in Denmark in the 1990s and provides evidence on the causes of this trend reversal.

Suggested Citation

  • Chris Jensen-Butler & Bjarne Madsen, 2005. "Decomposition Analysis: An Extended Theoretical Foundation and its Application to the Study of Regional Income Growth in Denmark," Environment and Planning A, , vol. 37(12), pages 2189-2208, December.
    • Handle: RePEc:sae:envira:v:37:y:2005:i:12:p:2189-2208
    DOI: 10.1068/a37248
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    References listed on IDEAS

    as
    1. Bjarne Madsen & Chris Jensen-Butler, 1999. "Make and Use Approaches to Regional and Interregional Accounts and Models," Economic Systems Research, Taylor & Francis Journals, vol. 11(3), pages 277-300.
    2. Börje Johansson & Charlie Karlsson & Roger R. Stough (ed.), 2002. "Regional Policies and Comparative Advantage," Books, Edward Elgar Publishing, number 2545.
    3. Mette Wier, 1998. "Sources of Changes in Emissions from Energy: A Structural Decomposition Analysis," Economic Systems Research, Taylor & Francis Journals, vol. 10(2), pages 99-112.
    4. Hewings,Geoffrey J. D. & Madden,Moss (ed.), 1995. "Social and Demographic Accounting," Cambridge Books, Cambridge University Press, number 9780521465724.
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    Cited by:

    1. Bruckmeier, Kerstin & Schwengler, Barbara, 2009. "The impact of federal social policies on spatial income inequalities in Germany : empirical evidence from social security data," IAB-Discussion Paper 200901, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    2. Cong, Rong-Gang & Stefaniak, Irena & Madsen, Bjarne & Dalgaard, Tommy & Jensen, Jørgen Dejgård & Nainggolan, Doan & Termansen, Mette, 2017. "Where to implement local biotech innovations? A framework for multi-scale socio-economic and environmental impact assessment of Green Bio-Refineries," Land Use Policy, Elsevier, vol. 68(C), pages 141-151.
    3. Arnab Bhattacharjee & Eduardo de Castro & (Late) Chris Jensen-Butler, 2007. "Evaluating Economic Theories of Growth and Inequality: A Study of the Danish Economy," CDMA Working Paper Series 200723, Centre for Dynamic Macroeconomic Analysis.

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