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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 ()

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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. Keywords: Keynesian multipliers, Italian regions, regional disparities JEL-classification: R10, E12, R15

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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa03p249.

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Date of creation: Aug 2003
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Handle: RePEc:wiw:wiwrsa:ersa03p249

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Raffaele 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. [Downloadable!]
  2. 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.
  3. Casini Benvenuti, Stefano & Martellato, Dino & Raffaelli, Cristina, 1995. "INTEREG: A Twenty-Region Input-Output Model for Italy," Economic Systems Research, Taylor and Francis Journals, vol. 7(2), pages 101-16.
  4. Benvenuti, Stefano Casini & Marangoni, Giandemetrio, 1999. "Infrastructure and Performance of the Italian Economic System," Economic Systems Research, Taylor and Francis Journals, vol. 11(4), pages 439-55, December.
  5. Sinclair, M Thea & Sutcliffe, Charles, 1988. "The Estimation of Keynesian Income Multipliers at the Sub-national Level," Applied Economics, Taylor and Francis Journals, vol. 20(11), pages 1435-44, November.
  6. Raffaele 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. [Downloadable!]
  7. 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.
  8. 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.
  9. Raffaele Paci & Francesco 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. [Downloadable!]
  10. 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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  1. José Luis Iparraguirre D’Elia, 2008. "Northern Ireland’s Input-Output Table. An application of Kronenberg’s Derivative Approach," Selected Research Papers ERINI 2008_ni_input_intput_tabl, Economic Research Institute of Northern Ireland. [Downloadable!]
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