IDEAS home Printed from https://ideas.repec.org/a/hrs/journl/vxivy2022i2p25-46.html
   My bibliography  Save this article

A Network-Based Algorithm For Computing Keynesian Income Multipliers In Multiregional Systems

Author

Listed:
  • Dimitrios TSIOTAS

    (Assistant Professor, Department of Regional and Economic Development, School of Applied Economic and Social Sciences, Agricultural University of Athens, Amfissa 33100, Greece)

Abstract

In the context of the Keynesian “multiplier effect” approach, regional economic growth and development are conceived as the result of changes in demand stimulating an iterative process of returns of income. Aiming to revisit this established regional economic model, promote multidisciplinary thinking, enjoy better supervision of computations and intuitive interpretation of the results, broaden the applicability of the model, and serve educational purposes in regional economics and development, this paper proposes an algorithm for computing Keynesian income multipliers in multiregional systems. Building on network connectivity, estimations of the regional shares of imports, marginal propensity to consume, and changes in demand, the proposed algorithm provides a framework for standardizing computations of the multiplier effect in multiregional systems. The algorithm is implemented in two theoretical scenarios, contributing to a deeper conceptualization of the computation of the Keynesian income multipliers, and an empirical case of the land interregional commuting network in Greece, providing insights into the developmental dynamics of the labor market (demand for employment) in Greece. Overall, the analysis highlights the symbiotic relationship between the multiplier effect and network structure in regional markets, promotes multidisciplinary thinking in regional science and economics, and provides a code of this network-based algorithm to motivate further research.

Suggested Citation

  • Dimitrios TSIOTAS, 2022. "A Network-Based Algorithm For Computing Keynesian Income Multipliers In Multiregional Systems," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 25-46, June.
    • Handle: RePEc:hrs:journl:v:xiv:y:2022:i:2:p:25-46
    as

    Download full text from publisher

    File URL: http://www.rsijournal.eu/ARTICLES/December_2022/2.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Alessandra Faggian & Bianca Biagi, 2003. "Measuring Regional Multipliers: a Comparison between two Different Methodologies for the case of the italian Regions," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2003(1).
    2. Serafeim Polyzos & Spyros Sofios, 2008. "Regional Multipliers, Inequalities and Planning in Greece," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 6(1), pages 53-77.
    3. G. C. Archibald, 1967. "Regional Multiplier Effects In The U.K," Oxford Economic Papers, Oxford University Press, vol. 19(1), pages 22-45.
    4. Georgios Karras, 2010. "REGIONAL ECONOMIC GROWTH AND CONVERGENCE, 1950-2007: Some Empirical Evidence," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 11-24, June.
    5. Peter Nijkamp, 2011. "The Role Of Evaluation In Supporting A Human Sustainable Development: A Cosmonomic Perspective," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 13-22, June.
    6. Tsiotas, Dimitrios, 2021. "Drawing indicators of economic performance from network topology: The case of the interregional road transportation in Greece," Research in Transportation Economics, Elsevier, vol. 90(C).
    7. Rudiger Hamm, 2010. "Some Supplementary Regional Economic Effects of a Premier League Soccer Club: Theoretical and empirical Considerations beyond Regional Multiplier Analysis," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 53-62, June.
    8. Dimitrios Tsiotas & Serafeim Polyzos, 2021. "Making the Web-Science Operational for Interregional Commuting Analysis: Evidence from Greece," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(2), pages 1-14, June.
    9. Ana Salome GARCIA MUÑIZ & Carmen RAMOS CARVAJAL, 2015. "Input-Output Linkages And Network Contagion In Greece:Demand And Supply View," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 15(2), pages 35-52.
    10. Natalia V. TRUSOVA & Oleksandr S. PRYSTEMSKYI & Oksana V. HRYVKIVSKA & Alina Zh. SAKUN & Yurii Y. KYRYLOV, 2021. "Modeling Of System Factors Of Financial Security Of Agricultural Enterprises Of Ukraine," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 169-182, June.
    11. repec:hrs:journl:v:4:y:2012:i:2:p:191-196 is not listed on IDEAS
    12. Roberto Basile & Pasquale Commendatore & Ingrid Kubin, 2021. "Complex spatial economic systems: migration, industrial location and regional asymmetries," Spatial Economic Analysis, Taylor & Francis Journals, vol. 16(1), pages 1-8, January.
    13. Stefano Costa & Federico Sallusti & Claudio Vicarelli, 2022. "Trade networks and shock transmission capacity: a new taxonomy of Italian industries," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 49(1), pages 133-153, March.
    14. Enrique L�pez-Bazo & Vassilis Monastiriotis & Raul Ramos, 2014. "Spatial Inequalities and Economic Growth," Spatial Economic Analysis, Taylor & Francis Journals, vol. 9(2), pages 113-119, June.
    15. César Ducruet & Dimitris Tsiotas, 2021. "Measuring the effect of distance on the network topology of the Global Container Shipping Network," Post-Print hal-03374898, HAL.
    16. Rita María del Río-Chanona & Jelena Grujić & Henrik Jeldtoft Jensen, 2017. "Trends of the World Input and Output Network of Global Trade," PLOS ONE, Public Library of Science, vol. 12(1), pages 1-14, January.
    17. Dimitrios TSIOTAS & Nikolaos AXELIS & Serafeim POLYZOS, 2022. "Detecting City-Dipoles In Greece Based On Intercity Commuting," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 11-30, June.
    18. Douglass C. North, 1955. "Location Theory and Regional Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 63(3), pages 243-243.
    19. Daniela- Luminita CONSTANTIN, 2021. "Addressing Spatial Justice At Lower Territorial Levels. Some Insights From The Central And East European Countries' Perspective," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 315-326, June.
    20. Georgios XANTHOS & Christos Ap. LADIAS & Christos GENITSAROPOULOS, 2012. "Regional Inequalities In Greece A Proposition For Their Depiction," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 191-196, December.
    21. Sultana Zeenat Fouzia & Jianhong Mu & Yong Chen, 2020. "Local labour market impacts of climate-related disasters: a demand-and-supply analysis," Spatial Economic Analysis, Taylor & Francis Journals, vol. 15(3), pages 336-352, July.
    22. Martin Andersson & Jan Frederic Weiss, 2012. "External Trade and Internal Geography: Local Export Spillovers by Industry Characteristics and Firm Size," Spatial Economic Analysis, Taylor & Francis Journals, vol. 7(4), pages 421-446, December.
    23. repec:hrs:journl:v:2:y:2010:i:1:p:11-24 is not listed on IDEAS
    24. Alexiadis Stilianos & Christos Ap. LADIAS, 2011. "Optimal Allocation Of Investment And Regional Disparities," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 45-59, December.
    25. Dimitrios Tsiotas & César Ducruet, 2021. "Measuring the effect of distance on the network topology of the Global Container Shipping Network," Post-Print halshs-03408185, HAL.
    26. Federica Cerina & Zhen Zhu & Alessandro Chessa & Massimo Riccaboni, 2015. "World Input-Output Network," PLOS ONE, Public Library of Science, vol. 10(7), pages 1-21, July.
    27. J. Elhorst, 2010. "Applied Spatial Econometrics: Raising the Bar," Spatial Economic Analysis, Taylor & Francis Journals, vol. 5(1), pages 9-28.
    28. repec:hrs:journl:v:3:y:2011:i:2:p:45-59 is not listed on IDEAS
    29. repec:hrs:journl:v:3:y:2011:i:1:p:13-22 is not listed on IDEAS
    30. Laura De Dominicis, 2014. "Inequality and Growth in European Regions: Towards a Place-based Approach," Spatial Economic Analysis, Taylor & Francis Journals, vol. 9(2), pages 120-141, June.
    31. Omid Mirzaei & David C. Natcher & Eric T. Micheels, 2021. "A spatial model of investment behaviour for First Nation governments," Spatial Economic Analysis, Taylor & Francis Journals, vol. 16(4), pages 530-549, October.
    32. Dimitrios Tsiotas & Serafeim Polyzos, 2018. "The Complexity in the Study of Spatial Networks: an Epistemological Approach," Networks and Spatial Economics, Springer, vol. 18(1), pages 1-32, March.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Filipos Ruxho & Dimitrios P. Petropoulos & Dimas Angga Negoro, 2024. "Public Debt As A Determinant Of The Economic Growth In Kosovo," Sustainable Regional Development Scientific Journal, Sustainable Regional Development Scientific Journal, vol. 0(1), pages 55-67, July.
    2. Dimitrios Tsiotas & Serafeim Polyzos, 2024. "Transportation Networks And Regional Development: The Conceptual And Empirical Framework In Greece," Sustainable Regional Development Scientific Journal, Sustainable Regional Development Scientific Journal, vol. 0(1), pages 15-39, July.
    3. Thomai TASOPOULOU & Dimitrios TSIOTAS & Serafeim POLYZOS, 2023. "Investigating The Interaction Between The Topology Of Bus Transport Networks And Regional Development In Greece," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 25-46, June.
    4. Evagelia Koutridi & Dimitrios Tsiotas & Olga Christopoulou, 2023. "Examining the Spatial Effect of “Smartness” on the Relationship between Agriculture and Regional Development: The Case of Greece," Land, MDPI, vol. 12(3), pages 1-22, February.
    5. Filipos Ruxho & Dimitrios P. Petropoulos & Dimas Angga Negoro, 2024. "Public Debt As A Determinant Of The Economic Growth In Kosovo," Sustainable Regional Development Scientific Journal, Sustainable Regional Development Scientific Journal, vol. 0(1), pages 55-67, July.
    6. Dimitrios Tsiotas & Serafeim Polyzos, 2024. "Transportation Networks And Regional Development: The Conceptual And Empirical Framework In Greece," Sustainable Regional Development Scientific Journal, Sustainable Regional Development Scientific Journal, vol. 0(1), pages 15-39, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Christos Ap. LADIAS & Filipos RUXHO & Fernando Jos? Calado e Silva Nunes TEIXEIRA & Susana Soares Pinheiro Vieira PESCADA, 2023. "The Regional Economic Indicators And Economic Development Of Kosovo," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 73-83, June.
    2. Vasileios PAPADIMITRIOU & Serafeim POLYZOS & Dimitrios TSIOTAS, 2023. "Renewable Energy Project Appraisal Using The Real Options Methodology," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 85-96, June.
    3. Veacheslav SHEBANIN & Iurii KORMYSHKIN & Alona KLIUCHNYK & Iryna ALLAKHVERDIYEVA & Valentyna UMANSKA, 2022. "Tools Of Formation Of The System Of Socio-Economic Security Of Territorial Communities Of The Region," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 127-136, June.
    4. Filipos RUXHO & Christos Ap. LADIAS, 2022. "Increasing Funding For The Regional Industry Of Kosovo And The Impact On Economic Growth," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 117-126, June.
    5. Thomai TASOPOULOU & Dimitrios TSIOTAS & Serafeim POLYZOS, 2023. "Investigating The Interaction Between The Topology Of Bus Transport Networks And Regional Development In Greece," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 25-46, June.
    6. Dimitrios TSIOTAS & Nikolaos AXELIS & Serafeim POLYZOS, 2022. "Detecting City-Dipoles In Greece Based On Intercity Commuting," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 11-30, June.
    7. Anastasios SEPETIS & Dimitrios TSIRIGOTIS & Ioannis NIKOLAOU & Yannis MANIATIS, 2024. "Esg Integration In Evaluating And Financing Local Government: A New Prospects For Local Governments And Modern Societies," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 81-97, June.
    8. Cristina LINCARU & Speranța PÎRCIOG, 2022. "Mapping Clusters In Central And Eastern European Regions Based On Fdi, Remittances And Employment – A Spatial Statistics Grouping Analysis," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 67-104, June.
    9. Daniela- Luminița CONSTANTIN & Corina- Cristiana NASTACĂ & Emilia GEAMBASU, 2021. "Population Accessibility To Rail Services. Insights Through The Lens Of Territorial Cohesion," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 81-98, June.
    10. Domínguez, Alvaro & Santos-Marquez, Felipe & Mendez, Carlos, 2021. "Sectoral productivity convergence, input-output structure and network communities in Japan," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 582-599.
    11. Amitrajeet A. BATABYAL & Seung Jick YOO, 2022. "A Theoretical Analysis Of Costs, Waste Treatment, Pollution In The Ganges, And Leather Production By Tanneries In Kanpur, India," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 47-53, June.
    12. Wang, Tao & Xiao, Shiying & Yan, Jun & Zhang, Panpan, 2021. "Regional and sectoral structures of the Chinese economy: A network perspective from multi-regional input–output tables," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 581(C).
    13. Wu, Jiaxin & Lu, Jing & Zhang, Lingye & Fan, Hanwen, 2024. "Spatial heterogeneity among different-sized port communities in directed-weighted global liner shipping network," Journal of Transport Geography, Elsevier, vol. 114(C).
    14. Chen, Yu & Lu, Yuqi & Jin, Cheng, 2024. "Spatiotemporal differentiation calendar for car and truck flow on expressways: A case study of Jiangsu, China," Journal of Transport Geography, Elsevier, vol. 116(C).
    15. Yicheol Han & Stephan J Goetz, 2019. "Measuring network rewiring over time," PLOS ONE, Public Library of Science, vol. 14(7), pages 1-13, July.
    16. Josselin Droff & Alfredo R. Paloyo, 2015. "Assessing The Regional Economic Impacts Of Defense Activities: A Survey Of Methods," Journal of Economic Surveys, Wiley Blackwell, vol. 29(2), pages 375-402, April.
    17. Daniela- Luminița CONSTANTIN & Corina- Cristiana NASTACĂ & Emilia GEAMBASU, 2021. "Population Accessibility To Rail Services. Insights Through The Lens Of Territorial Cohesion," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 81-101, June.
    18. Filipos RUXHO & Christos Ap. LADIAS, 2022. "The Logistic Drivers As A Powerful Performance Indicator In The Development Of Regional Companies Of Kosovo," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 95-106, June.
    19. Dimitrios Tsiotas & Vassilis Tselios, 2023. "Dimension Reduction in the Topology of Multilayer Spatial Networks: The Case of the Interregional Commuting in Greece," Networks and Spatial Economics, Springer, vol. 23(1), pages 97-133, March.
    20. Zhang, Panpan & Wang, Tiandong & Yan, Jun, 2022. "PageRank centrality and algorithms for weighted, directed networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 586(C).

    More about this item

    Keywords

    regional markets; multiplier effect; export-base model; demand for employment; interregional commuting;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hrs:journl:v:xiv:y:2022:i:2:p:25-46. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dimitrios K. Kouzas (email available below). General contact details of provider: .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.