Estimating induced effects in IO impact analysis: variation in the methods for calculating the Type II Leontief multipliers

Tobias Emonts-Holley, Andrew Ross, Kim Swales

Research output: Contribution to journalArticlepeer-review

9 Citations (Scopus)
22 Downloads (Pure)

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.
Original languageEnglish
Pages (from-to)429-445
Number of pages17
JournalEconomic Systems Research
Volume33
Issue number4
Early online date29 Oct 2020
DOIs
Publication statusPublished - 2 Oct 2021

Keywords

  • input-output
  • social accounting matrix
  • impact analysis
  • multipliers

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