Diagnosis and Therapy of Interregional Feedback Effects

  • Takeo Ihara
Part of the Advances in Spatial Science book series (ADVSPATIAL)


Economists have long been interested in measuring the total impact on employment, income, and output resulting from a given change in investment. One of the more useful analytical techniques developed by J. M. Keynes, based on the earlier work of R. S. Kahn, was that of the multiplier. In the The General Theory of Employment, Interest and Money, Keynes (1936) wrote as follows:

in a given circumstances a definite ratio, to be called the Multiplier, can be established between income and investment and, subject to certain simplifications, between the total employment and the employment directly employed on investment (which we shall call the primary employment).


Final Demand Indirect Route Input Coefficient Matrix Multiplier Regional Science Association 
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Copyright information

© Springer-Verlag Berlin Heidelberg 1999

Authors and Affiliations

  • Takeo Ihara
    • 1
  1. 1.Faculty of EconomicsKagawa UniversityTakamatsu, Kagawa 760Japan

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