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Measuring Regional Multipliers: a Comparison between two Different Methodologies for the case of the italian Regions

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  • Alessandra Faggian
  • Bianca Biagi

Abstract

This paper focuses on theory and methodology in estimating Keynesian regional multipliers. After introducing the concept of Keynesian multipliers at both national and regional level and describe the database used, two methodologies are compared and applied to the case of the Italian regions: the Marginal propensities method (MPM) and the Aggregate leakages method (ALM). The higher multipliers values in Southern Italy, resulting from the application of both methodologies, are consistent with similar previous findings and appear to be related to the degree of openness of the local economy, the availability of resources and their marginal productivity, the level of wealth, income distribution and the consequent different consumption patterns.

Suggested Citation

  • Alessandra Faggian & Bianca Biagi, 2003. "Measuring Regional Multipliers: a Comparison between two Different Methodologies for the case of the italian Regions," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2003(1).
    • Handle: RePEc:fan:scresc:v:html10.3280/scre2003-001002
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    Cited by:

    1. Philip B. Whyman, 2018. "The local economic impact of shale gas extraction," Regional Studies, Taylor & Francis Journals, vol. 52(2), pages 184-196, February.
    2. Sergio Destefanis & Mario Di Serio & Matteo Fragetta, 2022. "Regional multipliers across the Italian regions," Journal of Regional Science, Wiley Blackwell, vol. 62(4), pages 1179-1205, September.
    3. Francesco Simone Lucidi, 2023. "The misalignment of fiscal multipliers in Italian regions," Regional Studies, Taylor & Francis Journals, vol. 57(10), pages 2073-2086, October.
    4. Sergio Destefanis & Valter Di Giacinto, 2022. "EU structural funds and GDP per capita: Spatial VAR evidence for the European regions," Discussion Paper series in Regional Science & Economic Geography 2022-09, Gran Sasso Science Institute, Social Sciences, revised Oct 2024.
    5. V. A. Kryukov & V. E. Seliverstov, 2022. "The Space and Economy of Siberia: From Studying the Features of Development to Designing Directions for the Growth of Social Value," Studies on Russian Economic Development, Springer, vol. 33(5), pages 488-494, October.
    6. Sébastien Charles & Thomas Dallery & Jonathan Marie, 2018. "Why Are Keynesian Multipliers Larger in Hard Times? A Palley-Aftalion-Pasinetti Explanation," Review of Radical Political Economics, Union for Radical Political Economics, vol. 50(4), pages 736-756, December.
    7. Dimitrios TSIOTAS, 2022. "A Network-Based Algorithm For Computing Keynesian Income Multipliers In Multiregional Systems," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 25-46, June.

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    More about this item

    JEL classification:

    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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