IDEAS home Printed from https://ideas.repec.org/p/qld/uq2004/262.html
   My bibliography  Save this paper

Notes On Some Common Misconceptions In Input-Output Impact Methodology

Author

Abstract

The methodology in many studies involving input-output analysis appears to be often misunderstood, particularly in the way multipliers are used. The preoccupation with multipliers has led in many cases to incorrect analytical procedures; for example, there is a temptation to first derive a multiplier and then use this multiplier to calculate the total impact on the economy. This paper demonstrates that this approach is often erroneous and can result in significant errors. In addition, the importance of determining how imports are treated when using input-output in empirical situations is discussed. This is particularly relevant when using input-output tables in developing countries. Other issues which are clarified include the use of output multipliers, state versus regional multipliers and impacts, expenditure switching and table balancing.

Suggested Citation

  • Assoc. Prof. Guy R. West, 1999. "Notes On Some Common Misconceptions In Input-Output Impact Methodology," Discussion Papers Series 262, School of Economics, University of Queensland, Australia.
  • Handle: RePEc:qld:uq2004:262
    as

    Download full text from publisher

    File URL: http://espace.library.uq.edu.au/eserv/UQ:11078/DP262Oct99.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Shoven,John B. & Whalley,John, 1992. "Applying General Equilibrium," Cambridge Books, Cambridge University Press, number 9780521266550, April.
    2. P W J Batey & M Madden, 1981. "Demographic-Economic Forecasting within an Activity-Commodity Framework: Some Theoretical Considerations and Empirical Results," Environment and Planning A, , vol. 13(9), pages 1067-1083, September.
    Full references (including those not matched with items on IDEAS)

    More about this item

    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:qld:uq2004:262. 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: (SOE IT). General contact details of provider: http://edirc.repec.org/data/decuqau.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 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.