IDEAS home Printed from https://ideas.repec.org/p/ags/saeana/46716.html
   My bibliography  Save this paper

Input-Output Analysis, Linear Programming and Modified Multipliers

Author

Listed:
  • Zhu, Erqian Julia
  • Kim, Man-Keun
  • Harris, Thomas R.

Abstract

The input-output (IO) analysis explores changes in final demand through the regional economy using multipliers. However, it isn’t flexible to investigate the regional impact from the capacity limitations which are directly imposed on production, not final demand. This is because the multipliers are changing with exogenous restrictions on production. Conventionally, the IO analysis is performed assuming exogenous production restrictions being the changes in final demands or assuming the sector being exogenous sector like the final demand. If researchers or policy makers are interested in only economic impacts from production restrictions, there is no need to look into the modified multipliers. The modified multipliers should be considered when researchers and policy makers attempt to analyze the compensation of impact, especially recovery of loss using government expenditure. We suggest that the linear programming is a useful and efficient tool to derive modified multipliers and estimate correct regional impact from the policy changes.

Suggested Citation

  • Zhu, Erqian Julia & Kim, Man-Keun & Harris, Thomas R., 2009. "Input-Output Analysis, Linear Programming and Modified Multipliers," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46716, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saeana:46716
    DOI: 10.22004/ag.econ.46716
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/46716/files/IO_LP_Multipliers_SAEA2009.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.46716?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. J. B. Penn & Bruce A. McCarl & Lars Brink & George D. Irwin, 1976. "Modeling and Simulation of the U.S. Economy with Alternative Energy Availabilities," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 58(4_Part_1), pages 663-671.
    2. Lars Brink & Bruce McCarl, 1977. "Input-Output Analysis, Linear Programming And The Output Multiplier," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 25(3), pages 62-67, November.
    3. Sherman Robinson & Andrea Cattaneo & Moataz El-Said, 2001. "Updating and Estimating a Social Accounting Matrix Using Cross Entropy Methods," Economic Systems Research, Taylor & Francis Journals, vol. 13(1), pages 47-64.
    4. Wilfred Candler & Michael Boehlje, 1971. "Use of Linear Programming in Capital Budgeting with Multiple Goals," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 53(2), pages 325-330.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Soares, N. & Martins, A.G. & Carvalho, A.L. & Caldeira, C. & Du, C. & Castanheira, É. & Rodrigues, E. & Oliveira, G. & Pereira, G.I. & Bastos, J. & Ferreira, J.P. & Ribeiro, L.A. & Figueiredo, N.C. & , 2018. "The challenging paradigm of interrelated energy systems towards a more sustainable future," Renewable and Sustainable Energy Reviews, Elsevier, vol. 95(C), pages 171-193.
    2. Carvalho, Ariovaldo Lopes de & Antunes, Carlos Henggeler & Freire, Fausto & Henriques, Carla Oliveira, 2015. "A hybrid input–output multi-objective model to assess economic–energy–environment trade-offs in Brazil," Energy, Elsevier, vol. 82(C), pages 769-785.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marc Mueller & Emanuele Ferrari, 2012. "Social Accounting Matrices and Satellite Accounts for EU27 on NUTS2 Level (SAMNUTS2)," JRC Research Reports JRC73088, Joint Research Centre.
    2. Jensen, Henning Tarp & Keogh-Brown, Marcus R. & Shankar, Bhavani & Aekplakorn, Wichai & Basu, Sanjay & Cuevas, Soledad & Dangour, Alan D. & Gheewala, Shabbir H. & Green, Rosemary & Joy, Edward J.M. & , 2019. "Palm oil and dietary change: Application of an integrated macroeconomic, environmental, demographic, and health modelling framework for Thailand," Food Policy, Elsevier, vol. 83(C), pages 92-103.
    3. Ana Corina Miller & Alan Matthews & Trevor Donnellan & Cathal O'Donoghue, 2011. "A 2005 Agriculture-Food SAM (AgriFood-SAM) for Ireland," The Institute for International Integration Studies Discussion Paper Series iiisdp372, IIIS.
    4. Y.T. Bahta & B.J. Willemse & B. Grove, 2014. "The role of agriculture in welfare, income distribution and economic development of the Free State Province of South Africa: A CGE approach," Agrekon, Taylor & Francis Journals, vol. 53(1), pages 46-74, March.
    5. Corong, Erwin, 2010. "Global economic crisis, gender and poverty in the Philippines," Conference papers 331939, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    6. James D. A. Millington & Hang Xiong & Steve Peterson & Jeremy Woods, 2017. "Integrating Modelling Approaches for Understanding Telecoupling: Global Food Trade and Local Land Use," Land, MDPI, vol. 6(3), pages 1-18, August.
    7. Mueller, Marc & Ferrari, Emanuele, 2011. "Deriving CGE Baselines from Macro-economic Projections," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114638, European Association of Agricultural Economists.
    8. Ezequiel Uriel & Javier Ferri & Maria Luisa Molto, 2005. "Estimation of an Extended SAM with household production for Spain 1995," Economic Systems Research, Taylor & Francis Journals, vol. 17(3), pages 255-278.
    9. Ahmed, Vaqar & O' Donoghue, Cathal, 2007. "CGE-Microsimulation Modelling: A Survey," MPRA Paper 9307, University Library of Munich, Germany.
    10. Carlos Adri?n Romero & Omar Osvaldo Chisari & Leonardo Javier Mastronardi & Arturo Leonardo V?squez Cordano, 2015. "The cost of failing to prevent gas supply interruption: A CGE assessment for Peru," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2015(2), pages 131-148.
    11. Arndt, Channing & Garcia, Andres & Ha Pham, Hoang & McCoy, Simon & Tarp, Finn & Thurlow, James, 2010. "A 2007 social accounting matrix (SAM) for Vietnam," MPRA Paper 63386, University Library of Munich, Germany.
    12. Konstantinos Pouliakas & Deborah Roberts & Eudokia Balamou & Dimitris Psaltopoulos, 2014. "Modelling the Effects of Immigration on Regional Economic Performance and Wage Distribution: A Computable General Equilibrium (CGE) Analysis of Three European Union Regions," Regional Studies, Taylor & Francis Journals, vol. 48(2), pages 318-338, February.
    13. Ramos Carvajal, Carmen & Fernández Vázquez, Esteban, 2002. "Temporal projection of an input-output tables series for the region of Asturias," ERSA conference papers ersa02p211, European Regional Science Association.
    14. Sun, Xiaohua & Ren, Junlin & Wang, Yun, 2022. "The impact of resource taxation on resource curse: Evidence from Chinese resource tax policy," Resources Policy, Elsevier, vol. 78(C).
    15. Thurlow, James & Yang, Ling & Lahr, Michael L., 2012. "The (Declining) Role of Households in Sustaining China's Economy: Structural Path Analysis for 1997-2007," WIDER Working Paper Series 083, World Institute for Development Economic Research (UNU-WIDER).
    16. Niemi, Janne, 2009. "Dynamic (GTAP) model and baseline for energy and environment issues," Conference papers 331856, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    17. Go, Delfin S. & Robinson, Sherman & Thierfelder, Karen, 2016. "Natural resource revenue, spending strategies and economic growth in Niger," Economic Modelling, Elsevier, vol. 52(PB), pages 564-573.
    18. Alfredo José Mainar‐Causapé & Pierre Boulanger & Hasan Dudu & Emanuele Ferrari, 2020. "Policy impact assessment in developing countries using Social Accounting Matrices: The Kenya SAM 2014," Review of Development Economics, Wiley Blackwell, vol. 24(3), pages 1128-1149, August.
    19. Korinek, Jane & Le Cocguic, Jean & Sourdin, Patricia, 2010. "The availability and cost of short-term trade finance and its impact on trade," Conference papers 331989, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    20. K D Cocks & J R Ive & J R Davis & I A Baird, 1983. "SIRO-PLAN and LUPLAN: An Australian Approach to Land-Use Planning. 1. The SIRO-PLAN Land-Use Planning Method," Environment and Planning B, , vol. 10(3), pages 331-345, September.

    More about this item

    Keywords

    Community/Rural/Urban Development;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:saeana:46716. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/saeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.