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The Grand Tour: Keynes and Goodwin go to Greece

Author

Listed:
  • Eduardo Amaral Haddad

    (University of Sao Paulo
    FEAUSP)

  • Natalia Cotarelli

    (University of Sao Paulo)

  • Thiago Cavalcante Simonato

    (Federal University of Minas Gerais)

  • Vinicius Almeida Vale

    (Federal University of Parana)

  • Jaqueline Coelho Visentin

    (University of Sao Paulo)

Abstract

The impact of the crisis in the Greek economy was not uniform among the regions, threatening socioeconomic cohesion. In this paper, we explore the concept of the income multiplier in a multi-regional input–output setting, in the context of the Greek recession, showing empirical evidence for the increasing magnitude of the multiplier during the recession period. The main results reveal a complex system of interregional relations on some of whose structural characteristics the cyclical reaction paths of the regions depends. In this case, the use of fiscal instruments to stimulate local activity in the regions may bring about important implications for regional inequality in Greece.

Suggested Citation

  • Eduardo Amaral Haddad & Natalia Cotarelli & Thiago Cavalcante Simonato & Vinicius Almeida Vale & Jaqueline Coelho Visentin, 2020. "The Grand Tour: Keynes and Goodwin go to Greece," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-21, December.
    • Handle: RePEc:spr:jecstr:v:9:y:2020:i:1:d:10.1186_s40008-020-00205-5
    DOI: 10.1186/s40008-020-00205-5
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    Cited by:

    1. Eduardo A. Haddad & Inácio F. Araújo & Ademir Rocha & Karina Simone Sass, 2023. "Input–output analysis of the Ukraine war: A tool for assessing the internal territorial impacts of the conflict," Regional Science Policy & Practice, Wiley Blackwell, vol. 15(1), pages 8-55, February.
    2. Eduardo Amaral Haddad & Ilham Najib, 2024. "The Automotive Sector in Morocco: An Input-Output Structural Decomposition Analysis," Research papers & Policy papers 1973, Policy Center for the New South.
    3. Eduardo A. HADDAD & Fernando S. PEROBELLI & Inácio F. ARAÚJO & Tomás P. DENTINHO, 2020. "Uneven Integration: The Case of Angola," Research papers & Policy papers 1910, Policy Center for the New South.
    4. Eduardo Amaral Haddad & Inácio F. Araújo & Ademir Rocha & Karina Sass, 2022. "Input-Output Analysis of the Ukraine War: A Tool for Assessing the Internal Territorial Impacts of the Conflict," Research papers & Policy papers 1953, Policy Center for the New South.

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    More about this item

    Keywords

    Interregional input–output analysis; Keynesian multiplier; Recessions; Greece; Austerity policy; Countercyclical regional policy;
    All these keywords.

    JEL classification:

    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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