A long-run interpretation of regional input-output analysis

Research output: Contribution to journalArticle

68 Citations (Scopus)

Abstract

Regional input-output (I-O) analysis is traditionally motivated by a short-run, extreme Keynesian vision of markets. In this paper we argue that an appropriately formulated, investment-endogenous, I-O system replicates the long-run equilibria of a wide range of regional models, many of which do not operate as I-O systems in the short run. In particular, we use a computable general equilibrium (CGE) framework to illustrate the impact of an aggregate demand disturbance on an I-O and standard neoclassical model. When run forward over a number of periods, the results from the capacity-constrained neoclassical model asymptotically approach the I-O outcome. We use sensitivity analysis to examine the speed of adjustment of the neo-classical system and investigate barriers to the attainment of the I-O result.
Original languageEnglish
Pages (from-to)479-500
Number of pages21
JournalJournal of Regional Science
Volume36
Issue number3
DOIs
Publication statusPublished - Aug 1996

Keywords

  • regional input-output analysis

Fingerprint Dive into the research topics of 'A long-run interpretation of regional input-output analysis'. Together they form a unique fingerprint.

  • Cite this