A convenient policy control through the Macro Multiplier Approach

Maurizio Ciaschini, Rosita Pretaroli () and Claudio Socci

No 02-2006, Working Papers from Macerata University, Department of Studies on Economic Development (DiSSE)

Abstract: In this paper an attempt is made to identify a ”convenient” structure of a policy variable, final demand control, through the use of a multi-sectoral model. The method used relies on a specific spectral ecomposition which allows for the quantification of the scale-effect of each structure that the policy variable can assume on the structures of the objective ariable. This quantification is of aggregated type since the scalars obtained are valid for all sectoral components of both the policy variable and the objective variable. What is more relevant they are consistent with the multi-sectoral feature of the model, overcoming the objections put forward by the theory of aggregation. In fact the aggregation theory states that if we aggregate sectors we obtain a new model with different structural properties, while, in our case, the aggregated scalar that we obtain for each structure is perfectly consistent with the original model. We call these scalars Macroeconomic Multipliers since they say how many time the modulus of the multi-sectoral policy variable is multiplied when we compare it with the modulus of the effects observed on the multi-sectoral objective variable. Once identified the structures and the associated Macro Multipliers, the policy maker can have a complete picture of the economic structure of the objective variables that can be attained and determine a ”convenient” structure of the policy variable choosing either one structure or a combination of the structures identified.

Keywords: IO model; Structural Change; Multipliers Analysis (search for similar items in EconPapers)
JEL-codes: O1 O11 (search for similar items in EconPapers)
Date: 2006-07, Revised 2008-11
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.unimc.it/sviluppoeconomico/wpaper/wpaper00002/filePaper (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.unimc.it/sviluppoeconomico/wpaper/wpaper00002/filePaper [301 Moved Permanently]--> https://www.unimc.it/sviluppoeconomico/wpaper/wpaper00002/filePaper [302 Found]--> http://www2.unimc.it/sviluppoeconomico/wpaper/wpaper00002/filePaper)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mcr:wpaper:wpaper00002

Access Statistics for this paper

More papers in Working Papers from Macerata University, Department of Studies on Economic Development (DiSSE) Contact information at EDIRC.
Bibliographic data for series maintained by Carlo Sampaoli ( this e-mail address is bad, please contact ).