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Author(s) -
Dietzenbacher Erik
Publication year - 2005
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/j.0022-4146.2005.00377.x
Subject(s) - interpretation (philosophy) , point (geometry) , mathematical economics , net (polyhedron) , economics , computer science , mathematics , geometry , programming language
. Recently, Oosterhaven and Stelder (2002, Journal of Regional Science , 42, 533–543) (OS) addressed the issue of measuring the economic importance of an industry. In practice, the traditional multipliers are commonly multiplied by, for example, the outputs. According to OS, this is a misuse that leads to double counting, a correction for which results in their net multipliers. In this note, I will provide an economic interpretation, which suggests that net multipliers may be a good choice for descriptive purposes. The comment by de Mesnard (2002, Journal of Regional Science , 42, 545–548) adopts a different viewpoint. Following his approach, I will show that also the common procedure—which was the central point of rejection in OS—has a sound economic interpretation. In its turn, this yields an alternative interpretation for the matrices used in supply‐driven input–output models.