Abstract
This paper examines an extended input-output model that includes a migration mechanism and a locally funded welfare benefit regime. The model is developed to include two regions. Two different solution methods of the model are discussed, one involving the introduction of nonlinearities into the input-output framework. The results of the two solutions are compared using test data for a one-region formulation, and data for a two-region division of Scotland. The regional impacts of varying unemployment benefits differentially are assessed, and a range of impacts of economic and demographic regional injections presented.
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Madden, M. Welfare payments and migration in a nonlinear, extended input-output model with an application to Scotland. Papers in Regional Science 72, 177–199 (1993). https://doi.org/10.1007/BF01557458
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DOI: https://doi.org/10.1007/BF01557458