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Type II errors in IO multipliers

Tobias Emonts-Holley (), Andrew Ross and J Kim Swales ()
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Tobias Emonts-Holley: Department of Economics, University of Strathclyde
J Kim Swales: Department of Economics, University of Strathclyde

No 1504, Working Papers from University of Strathclyde Business School, Department of Economics

Abstract: This paper compares methods for calculating Input-Output (IO) Type II multipliers. These are formulations of the standard Leontief IO model which endogenise elements of household consumption. An analytical comparison of the two basic IO Type II multiplier methods with the Social Accounting Matrix (SAM) multiplier approach identifies the treatment of non-wage income generated in production as a central problem. The multiplier values for each of the IO and SAM methods are calculated using Scottish data for 2009. These results can be used to choose which Type II IO multiplier to adopt where SAM multiplier values are unavailable.

Keywords: Input-Output; Social Accounting Matrix; multipliers; Scotland (search for similar items in EconPapers)
JEL-codes: E16 E17 R13 R15 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2015-04
New Economics Papers: this item is included in nep-hme and nep-mac
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Citations: View citations in EconPapers (3)

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