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Net Economic Base Multipliers And Public Policy


  • Leven, Charles L.

    (Washington University of St. Louis, Missouri, USA)


The regional multiplier ordinarily applied to regional impact simulations is the Keynesian foreign-trade multiplier. This assumes that all of the increase in the aggregate demand is from the region’s “export” sector. In many applications there can be off-setting changes in domestic demand with multipliers of their own. For any region, the value of a multiplier for a new development within it is not some fixed number depending on the economic characteristics of the region, but it would also vary depending on characteristics of the development. Policy analysts should be on warning that they must carefully determine the exact assumptions and calculations underlying the “multiplier” implications of proposals by varying parties to policy debate concerning development proposals.

Suggested Citation

  • Leven, Charles L., 2001. "Net Economic Base Multipliers And Public Policy," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 59-62, December.
  • Handle: RePEc:rjr:romjef:v::y:2001:i:3:p:59-62

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    Cited by:

    1. Charles Leven, 2006. "Distortions in estimating net benefits of regional development projects," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 40(1), pages 191-201, March.

    More about this item


    public policy; economic multipliers; regional development;

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • R5 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis


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