Papers of the Regional Science Association

, Volume 17, Issue 1, pp 65–94 | Cite as

A regional interindustry model for analysis of development objectives

  • John H. Cumberland


There are three major criteria which determine whether or not an economic development program or any of its elements (such as a new plant) can make a positive contribution to the economic development and welfare of a city or region. These criteria, relating to income, public finance, and environmental quality, can be presented symbolically in terms of the model presented. The necessary conditions are:
$$\frac{{X_{H_{t - 1} } }}{{P_t }} > \frac{{X_{H_{t - 1} } }}{{P_{t - 1} }},$$
$$\frac{{G_t - T_t }}{{P_t }}< \frac{{G_{t - 1} - T_{t - 1} }}{{P_{t - 1} }}.$$
$$Q_t - C_t > Q_{t - 1} - C_{t - 1} or Q_t - B_t > Q_{t - 1} - B_{t - 1} .$$
Where:X H =regional personal incomes,G=regional government expenditures,T=regional government revenues,P=regional population,Q=environmental benefits,C=environmental costs,B=cost of environmental restoration, andt=time period.

The values for these variables are determined after all of the direct, indirect, and induced effects have been worked out through the general equilibrium model for any proposed development program or project.


Economic Development Development Program Equilibrium Model Regional Government General Equilibrium 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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Copyright information

© The Regional Science Association 1966

Authors and Affiliations

  • John H. Cumberland
    • 1
  1. 1.University of MarylandUSA

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