Abstract
This paper is a reply to Oosterhaven’s reply of the paper “A critical comment on Oosterhaven–Stelder net multipliers” written by de Mesnard in this issue of The Annals of Regional Science. It is argued that, unlike Oosterhaven’s statement, (1) any coefficient must be stable but Oosterhaven–Stelder final demand ratio is not; (2) the output must be exogenous in Oosterhaven–Stelder net multipliers (NM); (3) the Leontief input–output model can be validly seen as an iterative model, time consistent; (4) there is a valid link with the Keynesian multiplier; (5) the output preservation requirement is satisfied by de Mesnard’s ‘iterative net multiplier’. The paper concludes by agreeing to Oosterhaven’s suggestion that NM is not suitable to examine causalities between endogenous and exogenous variables and that the wording ‘multiplier’ is very bad and confusing for NM. Oosterhaven’s new suggestion of terming it as ‘net contribution’ or ‘net backward linkage’ is very good.
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