Supply Multipliers in Two Regional Economies
This paper focuses on the analysis of the economic impact that sectorial total factor productivity â€“ or valued added - gains have on two regional Spanish economies (Catalonia and Extremadura). In particular it is studied the quantitative effect that each sectorâ€™s valued added injections has on household welfare (real disposable income), on the consumption price indices and factor relative prices, on real production (GDP) and on the government and foreign net income. To do that, we introduce the concept of supply multiplier. The analytical approach consists of a computable general equilibrium model, in which it is assumed perfect competition and cleared markets of goods and factors. All the parameters and exogenous variables of the model are calibrated by means of two social accounting matrices, one for each region under study. The results allow identifying those sectors with the greatest multipliers impact on consumer welfare as the key sectors in the regional economies. Keywords: efficiency gains, supply multipliers, key sectors, computable general equilibrium. JEL Classification: C68, R13.
|Date of creation:||2013|
|Contact details of provider:|| Postal: Avda. de la Universitat,1 - 43204 Reus (Tarragona)|
Phone: 977 75 98 00
Fax: 977 75 98 10
Web page: http://www.urv.cat
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dale Jorgenson & Mun Ho & Jon Samuels & Kevin Stiroh, 2007. "Industry Origins of the American Productivity Resurgence," Economic Systems Research, Taylor & Francis Journals, vol. 19(3), pages 229-252.
- Mas Ivars Matilde & Robledo Domínguez Juan Carlos, 2010. "Productividad: una perspectiva internacional y sectorial," Books, Fundacion BBVA / BBVA Foundation, edition 0, number 2011100.
- Erik Dietzenbacher, 2005. "More on multipliers," Journal of Regional Science, Wiley Blackwell, vol. 45(2), pages 421-426.
- Miguel, Francisco Javier de & Llop Llop, Maria & Manresa, Antonio, 1954-, 2011. "Simulating the Impact of Sectorial Productivity Gains on Two Regional Economies: Key Sectors from a Supply Side Perspective," Working Papers 2072/169681, Universitat Rovira i Virgili, Department of Economics.
- Ana Salome Garcia Muniz & Antonio Morillas Raya & Carmen Ramos Carvajal, 2006.
"Key Sectors. A New Proposal From Network Theory,"
ERSA conference papers
ersa06p514, European Regional Science Association.
- Kenneth Hanson & Adam Rose, 1997. "Factor productivity and income inequality: a general equilibrium analysis," Applied Economics, Taylor & Francis Journals, vol. 29(8), pages 1061-1071.
- Manuel Alejandro Cardenete & Ferran Sancho, 2012.
"The Role Of Supply Constraints In Multiplier Analysis,"
Economic Systems Research,
Taylor & Francis Journals, vol. 24(1), pages 21-34, June.
- M. Alejandro Cardenete & Ferran Sancho, 2010. "The Role of Supply Constraints in Multiplier Analysis," UFAE and IAE Working Papers 805.10, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Manuel Alejandro Cardenete & Ferran Sancho, 2010. "The Role of Supply Constraints in Multiplier Analysis," Working Papers 432, Barcelona Graduate School of Economics.
- Pyatt, F Graham & Round, Jeffery I, 1979. "Accounting and Fixed Price Multipliers in a Social Accounting Matrix Framework," Economic Journal, Royal Economic Society, vol. 89(356), pages 850-873, December.
- Ferran Sancho, 2013.
"Some conceptual difficulties regarding ‘net’ multipliers,"
The Annals of Regional Science,
Springer;Western Regional Science Association, vol. 51(2), pages 537-552, October.
- Ferran Sancho, 2012. "Some Conceptual Difficulties Regarding 'Net' Multipliers," UFAE and IAE Working Papers 910.12, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
When requesting a correction, please mention this item's handle: RePEc:urv:wpaper:2072/213636. 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: (Ariadna Casals)
If references are entirely missing, you can add them using this form.