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Supply‐Driven Input‐Output Multipliers

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  • Christos T. Papadas
  • Dale C. Dahl

Abstract

The paper raises and discusses issues related to the derivation, behaviour and characteristics of input‐output multipliers where the exogenous changes are not assumed in elements of final demand but in total outputs of sectors and commodities. These multipliers are more appropriate for use in impact analysis of policies which influence farm outputs, than the traditional final demand multipliers. The paper estimates also such “supply‐driven” multipliers for 16 farm commodities of US agriculture. The empirical analysis shows that despite the variability in the multipliers' values, two rather solid groups of commodities which feel the strongest impacts of different crop and livestock output changes respectively, can be found. Several commodities are common to both groups, verifying also the significance of some indirect linkages between farm and non‐farm commodities. However, the final demand sectors absorb the largest part of the initial exogenous change itself.

Suggested Citation

  • Christos T. Papadas & Dale C. Dahl, 1999. "Supply‐Driven Input‐Output Multipliers," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(2), pages 269-285, May.
    • Handle: RePEc:bla:jageco:v:50:y:1999:i:2:p:269-285
    DOI: 10.1111/j.1477-9552.1999.tb00813.x
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    1. D. Roberts, 1994. "A Modified Leontief Model For Analysing The Impact Of Milk Quotas On The Wider Economy," Journal of Agricultural Economics, Wiley Blackwell, vol. 45(1), pages 90-99, January.
    2. Johnson, Thomas G. & Kulshreshtha, Surendra N., 1982. "Exogenizing Agriculture In An Input-Output Model To Estimate Relative Impacts Of Different Farm Types," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 7(2), pages 1-12, December.
    3. P. Midmore, 1993. "Input‐Output Forecasting Of Regional Agricultural Policy Impacts," Journal of Agricultural Economics, Wiley Blackwell, vol. 44(2), pages 284-300, May.
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    Cited by:

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    3. Elias Giannakis, 2014. "The Role Of Rural Tourism On The Development Of Rural Areas: The Case Of Cyprus," Romanian Journal of Regional Science, Romanian Regional Science Association, vol. 8(1), pages 38-53, JUNE.
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    7. Hubert Escaith & Fabien Gonguet, 2011. "International Trade and Real Transmission Channels of Financial Shocks in Global Production Networks: An Asian–USA Perspective," Chapters, in: Satoshi Inomata (ed.), Asia Beyond the Global Economic Crisis, chapter 3, Edward Elgar Publishing.
    8. Juan C. Surís-Regueiro & José L. Santiago, 2016. "An Input-Output methodological proposal to quantifying socio economic impacts linked to supply shocks," Working Papers 1603, Universidade de Vigo, Departamento de Economía Aplicada.
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