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Application of multivariate analysis as complementary instrument in studies about structural changes: An example of the multipliers in the US economy

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  • Almeida, Lucas Milanez de Lima
  • Balanco, Paulo Antonio de Freitas

Abstract

This paper aims to show that the use of multivariate analysis facilitates comparative static studies on the economy from a sectorial approach. An algorithm of cluster analysis, called affinity propagation, was used to find some temporal patterns in the multipliers in the US economy between 1997 and 2017. The study enabled us to reach three main conclusions. First, to confirm that the established concept that structural changes in the US economy did not occur suddenly. Second, the five-year interval time (as upper limit) may be inappropriate for studies based on input-output analysis for the US economy in the period. Third, the formation of the clusters (periods with structural similarities) of both backward and forward multipliers was sensitive to the 2007 Financial Crisis.

Suggested Citation

  • Almeida, Lucas Milanez de Lima & Balanco, Paulo Antonio de Freitas, 2020. "Application of multivariate analysis as complementary instrument in studies about structural changes: An example of the multipliers in the US economy," Structural Change and Economic Dynamics, Elsevier, vol. 53(C), pages 189-207.
    • Handle: RePEc:eee:streco:v:53:y:2020:i:c:p:189-207
    DOI: 10.1016/j.strueco.2020.02.006
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    More about this item

    Keywords

    Cluster analysis; Input-Output analysis; Structural change;
    All these keywords.

    JEL classification:

    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • N12 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - U.S.; Canada: 1913-

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