IDEAS home Printed from https://ideas.repec.org/p/wiw/wiwrsa/ersa03p249.html
   My bibliography  Save this paper

Measuring Regional Multipliers: A Comparison between Two Different Methodologies for the Case Of The Italian Regions

Author

Listed:
  • Alessandra Faggian
  • Bianca Biagi

Abstract

This paper focuses on theory and methodology in estimating Keynesian regional multipliers. After introducing the concept of Keynesian multipliers at both national and regional level and describe the database used, two methodologies are compared and applied to the case of the Italian regions: the "Marginal propensities method" (MPM) and the "Aggregate leakages method" (ALM). The higher multipliers values in Southern Italy, resulting from the application of both methodologies, are consistent with similar previous findings and appear to be related to the degree of openness of the local economy, the availability of resources and their marginal productivity, the level of wealth, income distribution and the consequent different consumption patterns. Keywords: Keynesian multipliers, Italian regions, regional disparities JEL-classification: R10, E12, R15

Suggested Citation

  • Alessandra Faggian & Bianca Biagi, 2003. "Measuring Regional Multipliers: A Comparison between Two Different Methodologies for the Case Of The Italian Regions," ERSA conference papers ersa03p249, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa03p249
    as

    Download full text from publisher

    File URL: https://www-sre.wu.ac.at/ersa/ersaconfs/ersa03/cdrom/papers/249.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. McDowall, S, 1975. "Regional Multipliers and Demand Leakages at Establishment Level: A Comment," Scottish Journal of Political Economy, Scottish Economic Society, vol. 22(1), pages 99-101, February.
    2. McCann, Philip, 2001. "Urban and Regional Economics," OUP Catalogue, Oxford University Press, number 9780198776451.
    3. Silvia Saddi & Raffaele Paci, 2002. "Capitale pubblico e produttivit? nelle regioni italiane," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2002(3).
    4. Lever, W F, 1975. "Regional Multipliers and Demand Leakages at Establishment Level: A Reply," Scottish Journal of Political Economy, Scottish Economic Society, vol. 22(1), pages 103-106, February.
    5. Stefano Casini Benvenuti & Giandemetrio Marangoni, 1999. "Infrastructure and Performance of the Italian Economic System," Economic Systems Research, Taylor & Francis Journals, vol. 11(4), pages 439-455.
    6. Raffaele Paci & Francesco Pigliaru, 1999. "Growth and sectoral dynamics in the Italian regions," Chapters, in: John Adams & Francesco Pigliaru (ed.), Economic Growth and Change, chapter 12, Edward Elgar Publishing.
    7. R. Paci & A. Saba, 1997. "The empirics of regional Economic growth in italy. 1951-1993," Working Paper CRENoS 199701, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    8. Sinclair, M Thea & Sutcliffe, Charles M S, 1982. "Keynesian Income Multipliers with First and Second Round Effects: An Application to Tourist Expenditure," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 44(4), pages 321-338, November.
    9. Black, Philip A, 1981. "Injection Leakages, Trade Repercussions and the Regional Income Multiplier," Scottish Journal of Political Economy, Scottish Economic Society, vol. 28(3), pages 227-235, November.
    10. A.G.M. Nairn & J.K. Swales, 1987. "Area Policy Impacts: A Multiplier Analysis of GEAR," Urban Studies, Urban Studies Journal Limited, vol. 24(1), pages 31-45, February.
    11. Sinclair, M Thea & Sutcliffe, Charles M S, 1983. "Injection Leakages, Trade Repercussions and the Regional Income Multiplier: An Extension," Scottish Journal of Political Economy, Scottish Economic Society, vol. 30(3), pages 275-286, November.
    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. Sergio Destefanis & Mario Di Serio & Matteo Fragetta, 2022. "Regional multipliers across the Italian regions," Journal of Regional Science, Wiley Blackwell, vol. 62(4), pages 1179-1205, September.
    2. Francesco Simone Lucidi, 2023. "The misalignment of fiscal multipliers in Italian regions," Regional Studies, Taylor & Francis Journals, vol. 57(10), pages 2073-2086, October.
    3. V. A. Kryukov & V. E. Seliverstov, 2022. "The Space and Economy of Siberia: From Studying the Features of Development to Designing Directions for the Growth of Social Value," Studies on Russian Economic Development, Springer, vol. 33(5), pages 488-494, October.
    4. Sergio Destefanis & Valter Di Giacinto, 2022. "EU structural funds and GDP per capita: Spatial VAR evidence for the European regions," Discussion Paper series in Regional Science & Economic Geography 2022-09, Gran Sasso Science Institute, Social Sciences, revised Oct 2024.
    5. Philip B. Whyman, 2018. "The local economic impact of shale gas extraction," Regional Studies, Taylor & Francis Journals, vol. 52(2), pages 184-196, February.
    6. Sébastien Charles & Thomas Dallery & Jonathan Marie, 2018. "Why Are Keynesian Multipliers Larger in Hard Times? A Palley-Aftalion-Pasinetti Explanation," Review of Radical Political Economics, Union for Radical Political Economics, vol. 50(4), pages 736-756, December.
    7. Dimitrios TSIOTAS, 2022. "A Network-Based Algorithm For Computing Keynesian Income Multipliers In Multiregional Systems," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 25-46, June.

    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. J.A. Lewis, 1988. "Assessing the Effect of the Polytechnic, Wolverhampton on the Local Community," Urban Studies, Urban Studies Journal Limited, vol. 25(1), pages 53-61, February.
    2. P.A. Black, 2004. "Economic Impact Analysis: Methodological Note," South African Journal of Economics, Economic Society of South Africa, vol. 72(5), pages 1069-1075, December.
    3. Juan Brida & Nicolás Garrido & Francesco Mureddu, 2014. "Italian economic dualism and convergence clubs at regional level," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(1), pages 439-456, January.
    4. Jason P. Brown & Raymond J.G.M. Florax & Kevin T. McNamara, 2009. "Determinants Of Investme??T Flows In U.S. Manufacturing," Working Papers 09-10, Purdue University, College of Agriculture, Department of Agricultural Economics.
    5. Marcus Adolphson, 2010. "Kernel Densities and Mixed Functionality in a Multicentred Urban Region," Environment and Planning B, , vol. 37(3), pages 550-566, June.
    6. Carl Gaigné & Jacques-François Thisse, 2013. "New Economic Geography and the City," Working Papers SMART 13-02, INRAE UMR SMART.
    7. Bockerman, Petri & Maliranta, Mika, 2007. "The micro-level dynamics of regional productivity growth: The source of divergence in Finland," Regional Science and Urban Economics, Elsevier, vol. 37(2), pages 165-182, March.
    8. Peter Mayerhofer, 2006. "A Change in Location Advantages in Austria since the Opening of Eastern Europe. On Developments of the Austrian Location Pattern since 1990," Austrian Economic Quarterly, WIFO, vol. 11(3), pages 125-137, September.
    9. Ioannou, Stefanos & Wójcik, Dariusz & Pažitka, Vladimír, 2021. "Financial centre bias in sub-sovereign credit ratings," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 70(C).
    10. Gerrit van der Pol, 2008. "Urban economic (re)development after declining base industries: a comparison between Emmen (NL) and Durham, North Carolina (USA)," NEURUS papers neurusp131, NEURUS - Network of European and US Regional and Urban Studies.
    11. Paolo Di Caro, 2015. "Recessions, recoveries and regional resilience: evidence on Italy," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 8(2), pages 273-291.
    12. Valter Di Giacinto & Giorgio Nuzzo, 2006. "Explaining labour productivity differentials across Italian regions: the role of socio‐economic structure and factor endowments," Papers in Regional Science, Wiley Blackwell, vol. 85(2), pages 299-320, June.
    13. Ugo Fratesi & Massimiliano Riggi, 2004. "Migration and Regional Disparities: the Role of Skill Biased Flows," Urban/Regional 0407004, University Library of Munich, Germany.
    14. Dalina-Maria ANDREI, 2015. "Clusters - Theoretical and Policy Approach," Eco-Economics Review, Ecological University of Bucharest, Economics Faculty and Ecology and Environmental Protection Faculty, vol. 1(1), pages 44-51, June.
    15. Florencia Garcia-Vicente & Daniel Garcia-Swartz & Martin Campbell-Kelly, 2017. "Information technology clusters and regional growth in America, 1970–1980," Small Business Economics, Springer, vol. 48(4), pages 1021-1046, April.
    16. Chih-Hao Wang, 2020. "Does compact development promote a seismic-resistant city? Application of seismic-damage statistical models to Taichung, Taiwan," Environment and Planning B, , vol. 47(1), pages 84-101, January.
    17. Valerien O. Pede & Raymond J. G. M. Florax & Henri L. F. de Groot & Gustavo Barboza, 2021. "Technological leadership and sectorial employment growth: A spatial econometric analysis for U.S. counties," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 50(1), February.
    18. Angel Alañón Pardo & Josep Maria Arauzo Carod, 2009. "Accessibility and Industrial Location: evidence from Spain," Documentos de trabajo de la Facultad de Ciencias Económicas y Empresariales 09-01, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales.
    19. Ferhan Gezici & Burçin Yazgı & Sinem Metin, 2013. "Analyzing the determinants of agglomeration for the manufacturing industry in Turkey," ERSA conference papers ersa13p808, European Regional Science Association.
    20. Philip B. Whyman, 2018. "The local economic impact of shale gas extraction," Regional Studies, Taylor & Francis Journals, vol. 52(2), pages 184-196, February.

    More about this item

    Keywords

    keynesian multipliers; italian regions; regional disparities jel-classification: r10; e12; r15;
    All these keywords.

    JEL classification:

    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

    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:wiw:wiwrsa:ersa03p249. 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: Gunther Maier (email available below). General contact details of provider: http://www.ersa.org .

    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.