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The Grand Tour: Keynes and Goodwin go to Greece

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  • Amaral Haddad, Eduardo

    (Departamento de Economia, Universidade de São Paulo)

  • Cotarelli, Natalia
  • Simonato, Thiago
  • Vale, Vinicius
  • Coelho Visentin, Jaqueline

Abstract

The impact of the crisis in the Greek economy was not uniform among the regions, threatening socioeconomic cohesion. In this paper, we explore the concept of the income multiplier in a multi-regional setting, in the context of the Greek recession, showing empirical evidence for the increasing magnitude of the multiplier during the recession period. The main results reveal a complex system of interregional relations on some of whose structural characteristics the cyclical reaction paths of the regions depend. In this case, the use of fiscal instruments to stimulate local activity in the regions may bring about important implications for regional inequality in Greece.

Suggested Citation

  • Amaral Haddad, Eduardo & Cotarelli, Natalia & Simonato, Thiago & Vale, Vinicius & Coelho Visentin, Jaqueline, 2017. "The Grand Tour: Keynes and Goodwin go to Greece," TD NEREUS 5-2017, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    • Handle: RePEc:ris:nereus:2017_005
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    3. Eduardo A. Haddad & Inácio F. Araújo & Ademir Rocha & Karina Simone Sass, 2023. "Input–output analysis of the Ukraine war: A tool for assessing the internal territorial impacts of the conflict," Regional Science Policy & Practice, Wiley Blackwell, vol. 15(1), pages 8-55, February.
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    More about this item

    Keywords

    interregional input-output system (IIOS); income multiplier; fiscal instruments; regional inequality; Greek recession;
    All these keywords.

    JEL classification:

    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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