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A Regional Model for the Portuguese Economy Based on a Regional Accounting Matrix

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  • Pedro N. Ramos

    (Faculty of Economics, University of Coimbra)

Abstract

This paper presents a model for the Portuguese economy based on a so-called "Regional Accounting Matrix" (RAM). The RAM is an accounting table made up of information provided by the standard National and Regional Accounts, with a framework inspired in the social accounting matrixes, where regions took the place of the social groups. Starting with the RAM, the paper then develops an input-output-type model closed with respect to the households' consumption. This model is based on a "hypothesis of non-existence of regional preference in supplying regions". The model allows the computation of several multipliers – the most striking of them describe the inter-regional income distribution process. In fact, an increase in income, at the beginning in benefit of the households living in one region, may cross the region borders and propagate into other regions, increasing then the households' income in the latter regions.

Suggested Citation

  • Pedro N. Ramos, 2003. "A Regional Model for the Portuguese Economy Based on a Regional Accounting Matrix," Notas Económicas, Faculty of Economics, University of Coimbra, issue 18, pages 18-30, December.
    • Handle: RePEc:gmf:journl:y:2003:i:18:p:18-30
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    Cited by:

    1. Anette Haas & Thomas Rothe, 2007. "Labour Market in Motion: Analysing Regional Flows in a Multi‐accounting System," LABOUR, CEIS, vol. 21(4‐5), pages 667-687, December.
    2. Haas, Anette & Rothe, Thomas, 2005. "Labour market dynamics from a regional perspective : the multi-account system," IAB-Discussion Paper 200507, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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