Regional Models of Income Determination: Simple Economic- Base Theory

ECONOMIC-BASE CONCEPTS ......................................................................... 1 Antecedents .............................................................................................. 1 Modern origins......................................................................................... 3 THE STRUCTURE OF MACROECONOMIC MODELS ........................................... 3 THE "STRAWMAN" EXPORT-BASE MODEL...................................................... 5 THE TYPICAL ECONOMIC-BASE MODEL ......................................................... 6 TECHNIQUES FOR CALCULATING MULTIPLIER VALUES.................................. 8 Comparison of planner's relationship and the economist's model.......... 8 The survey method ................................................................................... 8 The ad hoc assumption approach ............................................................ 8 Location quotients.................................................................................... 9 Minimum requirements .......................................................................... 11 "Differential" multipliers: a multiple-regression analysis ................... 11 CRITIQUE: ADVANTAGES, DISADVANTAGES, PRAISE, CRITICISM ................. 12