Advanced Search
MyIDEAS: Login to save this article or follow this journal

Lessons from the debate on Cole's model closure


Author Info

  • Jan Oosterhaven

    (Departments of Economics and of Spatial Sciences, University of Groningen, 9700 AV Groningen, The Netherlands)


Cole (1989, 1997, 1999) advocates the introduction of expenditure lags and the fullest possible closure of single-region input-output models. Jackson et al. (1997, 1999) claim that closing also with regard to the Rest-of-the-World leads to inconsistencies and zero exogenous demand, which makes impact studies impossible. Using somewhat different arguments I agree with them: endogenous interregional feedbacks are conceptually impossible outside a full interregional model. Two hardly discussed points, however, remain for further research. First, closing with regard to all other regional demand is precarious too, as it empirically and theoretically amplifies the one-sidedness of the demand-driven input-output model. Realistic impact studies ask for models including supply-side aspects. Second, adding expenditure lags is an improvement, but the way in which this can be done and should be done requires further theoretical development.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL:
Download Restriction: Access to the full text of the articles in this series is restricted

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Springer in its journal Papers in Regional Science.

Volume (Year): 79 (2000)
Issue (Month): 2 ()
Pages: 233-242

as in new window
Handle: RePEc:spr:presci:v:79:y:2000:i:2:p:233-242

Note: Received: December 1999
Contact details of provider:
Web page:

Order Information:

Related research

Keywords: Input-output analysis; social accounting; model closure; expenditure lags; supply effects;

Find related papers by JEL classification:


No references listed on IDEAS
You can help add them by filling out this form.


Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Yasuhide Okuyama & Michael Sonis & Geoffrey Hewings, 2006. "Typology of structural change in a regional economy: a temporal inverse analysis," Economic Systems Research, Taylor & Francis Journals, vol. 18(2), pages 133-153.
  2. Maria Llop, 2012. "The role of saving and investment in a SAM price model," The Annals of Regional Science, Springer, vol. 48(1), pages 339-357, February.
  3. Oosterhaven, Jan, 2002. "On the dynamics of net versus gross multipliers," ERSA conference papers ersa02p005, European Regional Science Association.


This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


Access and download statistics


When requesting a correction, please mention this item's handle: RePEc:spr:presci:v:79:y:2000:i:2:p:233-242. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F Baum).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.