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THE FIRST ROUND OF THE KEYNESIAN REGIONAL INCOME MULTIPLIER
Author(s) -
Sinclair M. Thea,
Sutcliffe Charles M. S.
Publication year - 1978
Publication title -
scottish journal of political economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.4
H-Index - 46
eISSN - 1467-9485
pISSN - 0036-9292
DOI - 10.1111/j.1467-9485.1978.tb00244.x
Subject(s) - multiplier (economics) , economics , econometrics , estimation , macroeconomics , keynesian economics , management
Previous studies utilising the Keynesian regional income multiplier have paid very limited attention to the estimation of the income generation which occurs during the first round of the multiplier process. However, since the first round of income generation is of greater magnitude than that of any other round, it is particularly important that the first round effects should be estimated correctly. This paper will attempt to analyse the way in which such estimation depends upon the types and values of the propensities to withdraw which are included in the first round. These are related, in turn, to the type of income which the multiplier methodology is attempting to measure, and to the form which the injection itself takes.