IDEAS home Printed from https://ideas.repec.org/p/ise/isegwp/wp522008.html
   My bibliography  Save this paper

A New Kind of Production Multiplier for Assessing the Scale and Structure Effects of Demand Shocks in Input-Output Frameworks

Author

Listed:
  • J. Ferreira do Amaral
  • João Dias
  • J. Carlos Lopes

Abstract

The main purpose of this paper is to develop a new kind of input-output multiplier that would be particularly well suited to quantifying the impacts of final demand changes on the sectoral output growth potential of an economy. Instead of using the traditional output multipliers, solving an appropriate optimization problem provides what can be called input-output Euclidean distance multipliers. This method does not impose unitary final demand shocks with a fixed (predetermined) structure, allowing the “IO economy” to change across the spectrum of all possible structures. It can be very helpful in measuring interindustry linkages and key sectors in a national or regional economy. An empirical illustration is made, using national (Spain and Portugal) and regional (Balearic Islands and the Azores) input-output data.

Suggested Citation

  • J. Ferreira do Amaral & João Dias & J. Carlos Lopes, 2008. "A New Kind of Production Multiplier for Assessing the Scale and Structure Effects of Demand Shocks in Input-Output Frameworks," Working Papers Department of Economics 2008/52, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
  • Handle: RePEc:ise:isegwp:wp522008
    as

    Download full text from publisher

    File URL: http://pascal.iseg.utl.pt/~depeco/wp/wp522008.pdf
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. João Carlos Lopes, 2011. "High Employment Generating Industries in Portugal. An Input-Output Approach," Working Papers Department of Economics 2011/24, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.

    More about this item

    Keywords

    input-output analysis; ultra-peripheral regions; structural change;

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ise:isegwp:wp522008. 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: (Vitor Escaria). General contact details of provider: https://aquila1.iseg.ulisboa.pt/aquila/departamentos/EC .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.