Abstract
State governments are often interested in the economic impact of various policies and shocks to local economies. Typically, multipliers from an input-output model are used to determine the total effect, which includes the direct effect of the policy or shock and the so-called ripple effects. This paper presents the theoretical background and examples of applications of a regional input-output model. The theoretical background will focus on explaining hour to correctly use such models so that exaggerated effects are not claimed. Examples of how to apply a tailor made model, namely RLMS II, are discussed. The paper concludes with a discussion of the value and the potential misuses of regional impact models.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
