Abstract
Regional multiplier is a very useful and popular tool in economic study of a region. However, conventional regional multiplier derived from a static input-output model fails to provide time path of the impact over period. In many cases, it restricts the impact within a year period. To alleviate the problem, this paper introduces a regional dynamic multiplier which makes the impact to spread out over period. In the absence of the technical change, each period multiplier added up to the static multiplier. Utilizing Oklahoma data, the paper estimates the capital coefficients and the dynamic multipliers of Oklahoma regional economy. Finally, it provides a comparative study of dynamic multipliers for various industries.
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