Simulating the Impact of Sectorial Productivity Gains on Two Regional Economies: Key Sectors from a Supply Side Perspective

Francisco Javier de Miguel, Maria Llop and Antonio Manresa

Working Papers from Universitat Rovira i Virgili, Department of Economics

Abstract: In this paper we simulate and analyse the economic impact that sectorial productivity gains have on two regional Spanish economies (Catalonia and Extremadura). In particular we study the quantitative effect that each sector’s productivity gain has on household welfare (real disposable income and equivalent variation), on the consumption price indices and factor relative prices, on real production (GDP) and on the government’s net income (net taxation revenues of social transfers to households). The analytical approach consists of a computable general equilibrium model, in which we assume perfect competition and cleared markets, including factor markets. All the parameters and exogenous variables of the model are calibrated by means of two social accounting matrices, one for each region under study. The results allow us to identify those sectors with the greatest impact on consumer welfare as the key sectors in the regional economies. Keywords: Productivity gains, key sectors, computable general equilibrium

Keywords: Productivitat (Economia); Catalunya -- Condicions econòmiques; Extremadura -- Condicions econòmiques; Sectors econòmics; 334 - Formes d'organització i cooperació en l'economia (search for similar items in EconPapers)
Date: 2011
New Economics Papers: this item is included in nep-geo
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Persistent link: https://EconPapers.repec.org/RePEc:urv:wpaper:2072/169681

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