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Some reflections on input-output multipliers

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Abstract

It is possible to identify some important inconsistencies in the definition of the components of input-output multipliers derived in the conventional manner. This paper identifies these inconsistencies which occur in output, income and employment multipliers, with the result that valid comparison of direct and indirect effects between multipliers is not possible. A suggested re-definition of input-output multipliers, considered to be free of these inconsistencies, is provided and illustrated.

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References

  1. Chenery, H. B. and Clark, P.G. (1962),Interindustry Economies, Wiley.

  2. Miernyk, W. H. (1965),The Elements of Input-Output Analysis Random House.

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Authors and Affiliations

  1. University of Queensland, Australia

    G. R. West & R. C. Jensen

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  1. G. R. West
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  2. R. C. Jensen
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West, G.R., Jensen, R.C. Some reflections on input-output multipliers. Ann Reg Sci 14, 77–89 (1980). https://doi.org/10.1007/BF01284205

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  • DOI: https://doi.org/10.1007/BF01284205

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