IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Using Ready-Made Regional Input-Output Models to Estimate Backward-Linkage Effects of Exogenous Output Shocks

  • Steinback, Scott R.

    (National Marine Fisheries Service, Northeast Fisheries Science Center)

Registered author(s):

    The Leontief input-output model provides the basis for quantifying backward linked multiplier effects of exogenous final demand shocks. In certain situations, however, policies or uncontrollable factors induce exogenous changes in gross industry output. Application of the usual Leontief multipliers in these cases will lead to biased calculations of backward linked economy-wide effects. To eliminate this bias, an output-based adjustment method is proposed that relates demand-driven Leontief multipliers to exogenous output shocks. It is demonstrated that this approach yields exactly the same results as the mixed exogenous/endogenous variables technique, a commonly employed adaptation procedure that accepts outputs as entries. The equivalence between these two approaches is important, because the output-based approach offers substantial computational savings through ease of implementation within ready-made regional input-output systems and provides practitioners with the ability to generate disaggregated estimates of indirect multiplier effects.

    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.

    File URL: http://journal.srsa.org/ojs/index.php/RRS/article/view/78/29
    Download Restriction: no

    Article provided by Southern Regional Science Association in its journal Review of Regional Studies.

    Volume (Year): 34 (2004)
    Issue (Month): 1 ()
    Pages: 57-71

    as
    in new window

    Handle: RePEc:rre:publsh:v:34:y:2004:i:1:p:57-71
    Contact details of provider: Web page: http://www.srsa.org

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:rre:publsh:v:34:y:2004:i:1:p:57-71. 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: (Mark L. Burkey)

    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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.