A Regional Model for the Portuguese Economy Based on a Regional Accounting Matrix
This paper presents a model for the Portuguese economy based on a so-called "Regional Accounting Matrix" (RAM). The RAM is an accounting table made up of information provided by the standard National and Regional Accounts, with a framework inspired in the social accounting matrixes, where regions took the place of the social groups. Starting with the RAM, the paper then develops an input-output-type model closed with respect to the households' consumption. This model is based on a "hypothesis of non-existence of regional preference in supplying regions". The model allows the computation of several multipliers – the most striking of them describe the inter-regional income distribution process. In fact, an increase in income, at the beginning in benefit of the households living in one region, may cross the region borders and propagate into other regions, increasing then the households' income in the latter regions.
Volume (Year): (2003)
Issue (Month): 18 (December)
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