The Neoclassical Economic Base Multiplier
In this paper we derive an analytical expression for the regional neoclassical economic base marginal employment multiplier. The model that we adopt is a variant of the 1-2-3 general equilibrium model used in trade analysis. Its specific neoclassical characteristics are that laborsupply is a positive function of the real consumption wage and that factor and product demands are price sensitive. We calculate the employment multipliers associated with both a demand and supply stimulus to the basic sector. We demonstrate that it is possible for the marginal economic base multiplier to take any positive or negative value. However, the value of the marginalmultiplier is likely to approximate the value of the conventional average multiplier the closer production and utility functions are to Cobb-Douglas specifications and the more elastic is the labor supply function. Copyright 2000 Blackwell Publishers inc.
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.
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.
Volume (Year): 40 (2000)
Issue (Month): 1 ()
|Contact details of provider:|| Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-4146|
|Order Information:||Web: http://www.blackwellpublishing.com/subs.asp?ref=0022-4146|
References listed on IDEAS
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.:
- Kilkenny, Maureen, 1998. "Transport Costs, the New Economic Geography, and Rural Development," Staff General Research Papers Archive 1201, Iowa State University, Department of Economics.
- David S. Kraybill & Thomas G. Johnson & David Orden, 1992. "Macroeconomic Imbalances: A Multiregional General Equilibrium Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(3), pages 726-736.
- Rich Jones & John Whalley, 1986.
"Regional Effects of Taxes in Canada: An Applied General Equilibrium Approach,"
NBER Working Papers
2107, National Bureau of Economic Research, Inc.
- Jones, Rich & Whalley, John, 1988. "Regional effects of taxes in Canada : An applied general equilibrium approach," Journal of Public Economics, Elsevier, vol. 37(1), pages 1-28, October.
- Brown, Scott J. & Coulson, N. Edward & Engle, Robert F., 1992. "On the determination of regional base and regional base multipliers," Regional Science and Urban Economics, Elsevier, vol. 22(4), pages 619-635, November.
- Treyz, George I, et al, 1993. "The Dynamics of U.S. Internal Migration," The Review of Economics and Statistics, MIT Press, vol. 75(2), pages 209-214, May.
- John Mutti, 1981. "Regional Analysis from the Standpoint of International Trade: Is it a Useful Perspective?," International Regional Science Review, , vol. 6(2), pages 95-120, August.
- E McVittie & J K Swales, 1999.
"Sector-specific factor subsidies and employment in a regional price-endogenous export-base model,"
Environment and Planning A,
Pion Ltd, London, vol. 31(12), pages 2145-2168, December.
- E McVittie & J K Swales, 1999. "Sector-Specific Factor Subsidies and Employment in a Regional Price-Endogenous Export-Base Model," Environment and Planning A, , vol. 31(12), pages 2145-2168, December.
- Charles Engel & John H. Rogers, 1995.
"How wide is the border?,"
International Finance Discussion Papers
498, Board of Governors of the Federal Reserve System (U.S.).
- Charles Engel & John H. Rogers, 1994. "How Wide is the Border?," NBER Working Papers 4829, National Bureau of Economic Research, Inc.
- Engel, C. & Rogers, J.H., 1995. "How Wide is the Border?," Papers 4-95-16, Pennsylvania State - Department of Economics.
- Charles Engel & John H. Rogers, 1995. "How wide is the border?," Research Working Paper 95-09, Federal Reserve Bank of Kansas City.
- Mark D. Partridge & Dan S. Rickman, 1998. "Regional Computable General Equilibrium Modeling: A Survey and Critical Appraisal," International Regional Science Review, , vol. 21(3), pages 205-248, December.
- A C Vias & G F Mulligan, 1997.
"Disaggregate Economic Base Multipliers in Small Communities,"
Environment and Planning A,
, vol. 29(6), pages 955-974, June.
- A C Vias & G F Mulligan, 1997. "Disaggregate economic base multipliers in small communities," Environment and Planning A, Pion Ltd, London, vol. 29(6), pages 955-974, June.
- Maureen Kilkenny, 1995.
"Transport Costs and Rural Development,"
Food and Agricultural Policy Research Institute (FAPRI) Publications
95-wp133, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
- Kilkenny, Maureen, 2003. "Transport Costs and Rural Development," Staff General Research Papers Archive 10309, Iowa State University, Department of Economics.
- Maureen Kilkenny, 1995. "Transport Costs and Rural Development," Center for Agricultural and Rural Development (CARD) Publications 95-wp133, Center for Agricultural and Rural Development (CARD) at Iowa State University.
- Kilkenny, Maureen, 1998. "Transport Costs and Rural Development," Staff General Research Papers Archive 1185, Iowa State University, Department of Economics.
- Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005.
"Unemployment: Macroeconomic Performance and the Labour Market,"
Oxford University Press, number 9780199279173.
- Layard, Richard & Nickell, Stephen & Jackman, Richard, 1991. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780198284345.
- Devaragan, Shantayanan & Lewis, Jeffrey D. & Robinson, Sherman, 1990. "Policy lessons from trade-focused, two-sector models," Journal of Policy Modeling, Elsevier, vol. 12(4), pages 625-657.
- Greenwood, Michael J, et al, 1991. "Migration, Regional Equilibrium, and the Estimation of Compensating Differentials," American Economic Review, American Economic Association, vol. 81(5), pages 1382-1390, December.
When requesting a correction, please mention this item's handle: RePEc:bla:jregsc:v:40:y:2000:i:1:p:1-31. 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: (Wiley-Blackwell Digital Licensing)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.