Evaluating the Impact of Alternatives in Oil Surplus Utilization on the Mexican Economy: An Input-Output Model Application

Noé Arón Fuentes () and Ana Cárdenas ()
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Noé Arón Fuentes: Departamento de Estudios Económicos, El Colegio de la Frontera Norte (COLEF), Tijuana, B.C. México.
Ana Cárdenas: Estudiante del doctorado en Ciencias Económicas, Universidad Autónoma de Baja California (UABC), Tijuana, B.C. México.

Economía Mexicana NUEVA ÉPOCA, 2010, vol. XIX, issue 2, 379-399

Abstract: The national input-output matrix can be used to estimate a set of economic multipliers, which are used to measure the effects on economic activity caused by a change in final demand (i.e. public expenditure, household consumption, investment, exports, etc.) in the short term. This article presents the multipliers of employment, household-income and production for the case of an increase in public spending resulting from oil surpluses in the year 2008. The results suggest that if we want to maximize the effect of the oil revenues, we must invest in infrastructure, in the manufacturing sector and re-invest in the energy sector.

Keywords: national input-output matrix; multipliers; oil revenues. (search for similar items in EconPapers)
JEL-codes: C67 (search for similar items in EconPapers)
Date: 2010
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