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DYNAMIC REGIONAL MULTIPLIERS AND THE ECONOMIC BASE: AN APPLICATION OF APPLIED ECONOMETRIC TECHNIQUES
Author(s) -
Bond Derek
Publication year - 1990
Publication title -
papers in regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.937
H-Index - 64
eISSN - 1435-5957
pISSN - 1056-8190
DOI - 10.1111/j.1435-5597.1990.tb01200.x
Subject(s) - cointegration , econometrics , economics , estimation , base (topology) , econometric analysis , econometric model , mathematics , mathematical analysis , management
This paper considers recent developments in econometrics that have helped to resolve the apparent dichotomy between time‐series analysis and dynamic econometrics. In particular, the paper shows how the concepts of cointegration and error‐correction models can be used in the estimation of dynamic regional multipliers. Using the results of a pilot study for Northern Ireland it is shown how the techniques provide a new method for estimating the economic base, and an encompassing approach to early conflicting results.