Elucidating General Equilibrium Multiplier Effects: A Differential Perspective - Theoretical Economics Letters

TEL > Vol.3 No.5, October 2013

Theoretical Economics Letters

Volume 3, Issue 5 (October 2013)

ISSN Print: 2162-2078 ISSN Online: 2162-2086

Google-based Impact Factor: 1.19 Citations h5-index & Ranking

Elucidating General Equilibrium Multiplier Effects: A Differential Perspective ()

HTML

Download as PDF (Size: 126KB) PP. 279-282

DOI: 10.4236/tel.2013.35046 4,316 Downloads 5,846 Views Citations

Author(s)

M. Alejandro Cardenete, Ferran Sancho

Affiliation(s)

Department of Economics, Universidad Loyola Andalucía, Sevilla, Spain.
Department of Economics, Universitat Autònoma de Barcelona, Barcelona, Spain.

ABSTRACT

Expenditure multipliers are routinely used to evaluate the effectiveness of government spending. When interested in disaggregated effects, interindustry models provide the necessary tools to be able to look at very detailed sectorial results. These models are theoretically simple and empirically operational, which makes them easily implementable and therefore popular with policy makers. They miss, however, quite a bit of the interaction that takes place at the micro level. On the one hand, they ignore the role exerted by supply constraints in primary factors; on the other hand, they look at the world as though it is fully linear. We overcome these limitations by using an opposite Walrasian general equilibrium model to compute marginal multipliers. By using differential calculus, we also offer some insights regarding the “under-the-hood” circuits of influence.

KEYWORDS

Marginal Multipliers; General Equilibrium; Linear vs. Nonlinear Models

Share and Cite:

M. Cardenete and F. Sancho, "Elucidating General Equilibrium Multiplier Effects: A Differential Perspective," Theoretical Economics Letters, Vol. 3 No. 5, 2013, pp. 279-282. doi: 10.4236/tel.2013.35046.

Cited by

[1]	Elementos multisectoriales para el análisis empírico de la economía española
	ANáLISIS EMPíRICOS SOBRE LA ECONOMíA ESPA?OLA, 2017

[2]	Identificación de sectores clave bajo un modelo de equilibrio general: El caso de Andalucía
	2015

[3]	Instrumentos multisectoriales para la detección de sectores clave en el análisis regional1/Multisectoral tools for key sectors analysis in regional analysis
	Revista de estudios regionales, 2014

[4]	Instrumentos multisectoriales para la detección de sectores clave en el análisis regional
	Revista de estudios regionales, 2014

Journals Menu

Follow SCIRP

	+1 323-425-8868
	customer@scirp.org
	+86 18163351462(WhatsApp)
	1655362766

	Paper Publishing WeChat

Journals Menu

Home

About SCIRP

Service

Policies