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A NOTE ON THE GENERAL MATHEMATICAL EQUIVALENCY OF ECONOMIC BASE AND AGGREGATE INPUT‐OUTPUT MULTIPLIERS: FACT OR FICTION *
Author(s) -
Merrifield John
Publication year - 1987
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.1467-9787.1987.tb01187.x
Subject(s) - aggregate (composite) , base (topology) , economics , mathematical economics , economic base analysis , econometrics , mathematics , computer science , microeconomics , mathematical analysis , materials science , composite material
A longstanding inconsistency in the definition of basic and nonbasic economic activity is resolved. When indirect exports are included in the basic, rather than the nonbasic sector, and the model is closed with respect to households, economic base and aggregate input‐output mulitpliers constructed with the same data and definitions will be mathematically identical.