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Diagnosis and Therapy of Interregional Feedback Effects

In: Understanding and Interpreting Economic Structure

Author

Listed:
  • Takeo Ihara

    (Kagawa University)

Abstract

Economists have long been interested in measuring the total impact on employment, income, and output resulting from a given change in investment. One of the more useful analytical techniques developed by J. M. Keynes, based on the earlier work of R. S. Kahn, was that of the multiplier. In the The General Theory of Employment, Interest and Money, Keynes (1936) wrote as follows: in a given circumstances a definite ratio, to be called the Multiplier, can be established between income and investment and, subject to certain simplifications, between the total employment and the employment directly employed on investment (which we shall call the primary employment).

Suggested Citation

  • Takeo Ihara, 1999. "Diagnosis and Therapy of Interregional Feedback Effects," Advances in Spatial Science, in: Geoffrey J. D. Hewings & Michael Sonis & Moss Madden & Yoshio Kimura (ed.), Understanding and Interpreting Economic Structure, chapter 5, pages 91-111, Springer.
    • Handle: RePEc:spr:adspcp:978-3-662-03947-2_5
    DOI: 10.1007/978-3-662-03947-2_5
    as

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