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Regional Economic Multipliers: Definition, Measurement, and Application

Author

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  • Benjamin H. Stevens

    (Regional Science Research Institute)

  • Michael L. Lahr

    (Regional Science Research Institute)

Abstract

Economic development specialists are often called upon to assess the total regional impacts of a project, policy, or program. This paper reviews traditional multiplier methods of impact evaluation, pointing out their advantages and limitations. Emphasis is given to definition and measurement problems as they affect the way regional multipliers are usually estimated and used. The discussion is then extended to input-output models and multipliers. Particular attention is given to the greater accuracy and range of results as well as the additional complexity of application and interpretation inherent in regional input-output methods.

Suggested Citation

  • Benjamin H. Stevens & Michael L. Lahr, 1988. "Regional Economic Multipliers: Definition, Measurement, and Application," Economic Development Quarterly, , vol. 2(1), pages 88-96, February.
    • Handle: RePEc:sae:ecdequ:v:2:y:1988:i:1:p:88-96
    DOI: 10.1177/089124248800200108
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    Cited by:

    1. Paredes, Dusan & Komarek, Timothy & Loveridge, Scott, 2015. "Income and employment effects of shale gas extraction windfalls: Evidence from the Marcellus region," Energy Economics, Elsevier, vol. 47(C), pages 112-120.
    2. Brad R. Watts & George A. Erickcek & Jacob Duritsky & Kevin O’Brien & Claudette Robey & Jim Robey, 2009. "What Should EDA Fund? Developing a Model for Pre-Assessment of Economic Development Investments," Upjohn Working Papers 09-155, W.E. Upjohn Institute for Employment Research.
    3. Cletus C. Coughlin & Thomas B. Mandelbaum, 1991. "A consumer's guide to regional economic multipliers," Review, Federal Reserve Bank of St. Louis, issue Jan, pages 19-32.
    4. Sarah A. Low & Andrew M. Isserman, 2009. "Ethanol and the Local Economy," Economic Development Quarterly, , vol. 23(1), pages 71-88, February.
    5. Brad R. Watts & George A. Erickcek & Jacob Duritsky & Kevin O'Brien & Claudette Robey & James Robey, 2011. "What Should EDA Fund? Developing a Model for Preassessment of Economic Development Investments," Economic Development Quarterly, , vol. 25(1), pages 65-78, February.

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