The local income multiplier model Oxford Brookes University
The analysis of the wider economic effects of introducing a major new source of income and employment into a local economy can be carried out using several different techniques. The three methods most frequently used are (a) the economic base multiplier model, (b) the input-output model, and (c) the Keynesian multiplier. The income multiplier model used in this study is described by means of a series of mathematical equations. The equations incorporate each of types of expenditure arising from the University’s activities, and model the effects of this expenditure as it works its way through the local economy.
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