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: https://orcid.org/0000-0002-5471-4362, Ross, Andrew ORCID: https://orcid.org/0000-0002-9228-5626 and Swales, Kim;-
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Item type: Article ID code: 79316 Dates: DateEvent2 October 2021Published29 October 2020Published Online13 October 2020AcceptedSubjects: Social Sciences > Economic Theory Department: Strathclyde Business School > Economics Depositing user: Pure Administrator Date deposited: 27 Jan 2022 10:38 Last modified: 05 Dec 2024 01:20 URI: https://strathprints.strath.ac.uk/id/eprint/79316