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Net Economic Base Multipliers and Public Policy

Author

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  • Leven, Charles L.

    (Washington University and University of Missouri, St. Louis)

Abstract

The regional multiplier ordinarily applied to regional impact simulations is the Keynesian foreign trade multiplier. This assumes that all of the increase in aggregate demand is from the region's "export" sector. In many applications, there can be offsetting changes in domestic demand with multipliers of their own. It is possible in many cases for the net multiplier to be less than 1.0. In extreme cases of differences in the import component of exports and displaced domestic demand, the net multiplier could be negative.

Suggested Citation

  • Leven, Charles L., 2000. "Net Economic Base Multipliers and Public Policy," The Review of Regional Studies, Southern Regional Science Association, vol. 30(1), pages 57-60, Summer.
    • Handle: RePEc:rre:publsh:v:30:y:2000:i:1:p:57-60
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    Cited by:

    1. Maureen Kilkenny & Mark D. Partridge, 2009. "Export Sectors and Rural Development," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(4), pages 910-929.
    2. Kilkenny, Maureen & Partridge, Mark D., 2008. "Rural Growth and the Rural Capital Account," 2007 Agricultural and Rural Finance Markets in Transition, October 4-5, 2007, St. Louis, Missouri 48145, Regional Research Committee NC-1014: Agricultural and Rural Finance Markets in Transition.
    3. Jean-Paul Bousset & Dominique Vollet, 2003. "Apports de l'analyse des ensembles approximatifs à une application de la méta-analyse en économie régionale. Illustration à partir des modèles de la base économique," Revue d'économie régionale et urbaine, Armand Colin, vol. 0(5), pages 773-798.

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