McGregor, P.G. and McVittie, E.P. and Swales, J.K. and Yin, Y.P. (2000) The neoclassical economic base multiplier. Journal of Regional Science, 40 (1). pp. 1-31. ISSN 0022-4146Full text not available in this repository. (Request a copy from the Strathclyde author)
In this paper we derive an analytical expression for the regional neoclassical economic base marginal employment multiplier. The model that we adopt is a variant of the 1-2-3 general equilibrium model used in trade analysis. Its specific neoclassical characteristics are that laborsupply is a positive function of the real consumption wage and that factor and product demands are price sensitive. We calculate the employment multipliers associated with both a demand and supply stimulus to the basic sector. We demonstrate that it is possible for the marginal economic base multiplier to take any positive or negative value. However, the value of the marginalmultiplier is likely to approximate the value of the conventional average multiplier the closer production and utility functions are to Cobb-Douglas specifications and the more elastic is the labor supply function.
|Keywords:||economic base multiplier, neoclassical, 1-2-3 general equilibrium model, Economic Theory, Development, Environmental Science (miscellaneous)|
|Subjects:||Social Sciences > Economic Theory|
|Department:||Strathclyde Business School > Economics|
|Depositing user:||Strathprints Administrator|
|Date Deposited:||30 Apr 2010 13:06|
|Last modified:||04 May 2016 14:15|