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A General Equilibrium Assessment of the Impact of a Fall in Tourism Under Alternative Closure Rules: the Case of the Balearic Islands

Author

Listed:
  • Clemente Polo

    (Universidad Autœnoma de Barcelona, Spain, clemente.polo@uab.es)

  • Elisabeth Valle

    (University of the Balearic Islands, Palma de Mallorca, Spain, elisabeth.valle@uib.es)

Abstract

A look at the 1997 input-output table shows the Balearic Islands as a service-oriented economy, highly specialized in the production of services for tourists. The main goal of this article is to evaluate with alternative multisectoral models the impact on the Balearic Islands economy of a 10 percent permanent fall in tourism demand. First, we estimate the impact of the reduction in nonresident consumption using a rather standard input-output model. Then, we estimate its effects using an extended general linear model implemented with a social accounting matrix elaborated by the authors. Finally, we use an applied (computable) general equilibrium model using alternative closure rules to those encountered in other regional studies.

Suggested Citation

  • Clemente Polo & Elisabeth Valle, 2008. "A General Equilibrium Assessment of the Impact of a Fall in Tourism Under Alternative Closure Rules: the Case of the Balearic Islands," International Regional Science Review, , vol. 31(1), pages 3-34, January.
  • Handle: RePEc:sae:inrsre:v:31:y:2008:i:1:p:3-34
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    References listed on IDEAS

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    3. Kehoe, Timothy J. & Serra-Puche, Jaime, 1983. "A computational general equilibrium model with endogenous unemployment : An analysis of the 1980 fiscal reform in Mexico," Journal of Public Economics, Elsevier, vol. 22(1), pages 1-26, October.
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    6. Fernández, Melchor & Polo, Clemente, 2004. "Consecuencias del ajuste fiscal en España," El Trimestre Económico, Fondo de Cultura Económica, vol. 0(282), pages 453-484, abril-jun.
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    8. Scott Loveridge, 2004. "A Typology and Assessment of Multi-sector Regional Economic Impact Models," Regional Studies, Taylor & Francis Journals, vol. 38(3), pages 305-317.
    9. Kehoe, Timothy J. & Noyola, Pedro Javier & Manresa, Antonio & Polo, Clemente & Sancho, Ferran, 1988. "A general equilibrium analysis of the 1986 tax reform in Spain," European Economic Review, Elsevier, vol. 32(2-3), pages 334-342, March.
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    Citations

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    Cited by:

    1. Diana Perez-Dacal & Yolanda Pena-Boquete, 2011. "Temporary Employment in Tourism Activities: Regional differences in Spain," ERSA conference papers ersa11p1811, European Regional Science Association.
    2. Yolanda Pena-Boquete & Diana Pérez-Dacal, 2012. "Effects of tourism development on temporality," Documentos de trabajo - Analise Economica 0047, IDEGA - Instituto Universitario de Estudios e Desenvolvemento de Galicia.
    3. M. Alejandro Cardenete & M. Carmen Lima & Ferran Sancho, 2013. "Are There Key Sectors? An Appraisal Using Applied General Equilibrium," The Review of Regional Studies, Southern Regional Science Association, vol. 43(2,3), pages 111-129, Winter.
    4. Ignacio Cazcarro & Rosa Duarte & Julio Sánchez Chóliz & Cristina Sarasa & Ana Serrano, 2016. "Modelling regional policy scenarios in the agri-food sector: a case study of a Spanish region," Applied Economics, Taylor & Francis Journals, vol. 48(16), pages 1463-1480, April.
    5. Álvarez-Martínez, María Teresa & Polo, Clemente, 2012. "A general equilibrium assessment of external and domestic shocks in Spain," Economic Modelling, Elsevier, vol. 29(6), pages 2486-2493.
    6. Mohamed KARIM & Eric Tchouamou NJOYA, 2013. "Impact of Inbound Tourism in Kenyan Economy: An Analysis Using a Computable General Equilibrium Model," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 3(7), pages 911-932, July.
    7. Stefano Rosignoli & Enrico Conti & Alessandro Viviani, 2013. "Local Impact of Tourism: The Case of Tuscany," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2013(3), pages 89-109.
    8. Eric Tchouamou-Njoya@hs-bremen.de, 2012. "The Economic Impact of Inbound Tourism in Kenya: A CGE Analysis," EcoMod2012 3901, EcoMod.
    9. Polo, Clemente & Valle, Elisabeth, 2011. "The Weight of Tourism in the Balearic Islands: 1983-1997-2004/El peso del turismo en las Islas Baleares: 1983-1997-2004," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 29, pages 737-754, Diciembre.
    10. Álvarez-Martínez, María, 2014. "The Effects of European Structural Funds in the Spanish Regions Using CGE Models: a review," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 29, pages 129-138.

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