Estimating induced effects in IO impact analysis : variation in the methods for calculating the Type II Leontief multipliers

Emonts-Holley, Tobias and Ross, Andrew and Swales, Kim (2021) Estimating induced effects in IO impact analysis : variation in the methods for calculating the Type II Leontief multipliers. Economic Systems Research, 33 (4). pp. 429-445. ISSN 0953-5314 (https://doi.org/10.1080/09535314.2020.1837741)

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Abstract

Type II input–output (IO) multipliers are frequently used for impact analysis. Unfortunately, there is no standard way to calculate these. The fundamental issue is that these multiplier methods endogenise household consumption but all have drawbacks because the IO accounts are missing key information required to consistently link household income and consumption to domestic economic activity. Using compatible regional and national data sets, we evaluate the values for various IO Type II multipliers to a benchmark value calculated with the aid of social accounting matrix data. The results suggest that the variation in Type II IO multiplier values generated by these alternative methods is an empirically non-trivial issue.

ORCID iDs

Emonts-Holley, Tobias ORCID logoORCID: https://orcid.org/0000-0002-5471-4362, Ross, Andrew ORCID logoORCID: https://orcid.org/0000-0002-9228-5626 and Swales, Kim;
  • Item type:Article
    ID code:79316
    Dates:
    Date
    Event
    2 October 2021
    Published
    29 October 2020
    Published Online
    13 October 2020
    Accepted
    Subjects:Social Sciences > Economic Theory
    Department:Strathclyde Business School > Economics
    Depositing user: Pure Administrator
    Date deposited:27 Jan 2022 10:38
    Last modified:14 Nov 2024 04:09
    URI:https://strathprints.strath.ac.uk/id/eprint/79316
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