Abstract

Personal income multipliers are estimated for a sixteen sector regional economy by means of a net-trade-flow model which uses regional industry earnings as input. Multipliers are based on regionally computed marginal propensities to consume and import. The model is fed by a file of county earnings data providing complete flexibility of region definition along county boundaries. Tests show the model to be sensitive to regional definition and relative industry size. The model provides a description of regional economies and relative impacts of industries on personal income; it is not a perfect substitute, however, for a region specific input-output analysis.

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