Effects of Exogenous Price Changes on a Regional Economy: An Input-Output Analysis

1 October 1977

journal article
research article
Published by SAGE Publications in International Regional Science Review

Vol. 2 (1) , 15-27
https://doi.org/10.1177/016001767700200102

Abstract

THIS PAPER DESCRIBES A METHOD FOR INCORPORATING EXOGENOUS PRICE CHANGES INTO INPUT-OUTPUT ANALYSIS AND THEREBY ESTIMATING THEIR IMPACT ON A REGIONAL ECONOMY. THE EMPIRICAL RESULTS DEMONSTRATE THAT WHEN THE PRICES OF WHEAT, ELECTRICITY, PETROLEUM, AND NATURAL GAS ARE INCREASED BY EXOGENOUS FORCES, THEIR EFFECTS ON WASHINGTON STATE'S ECONOMY ARE SIGNIFICANT AND DIVERSE. THE METHOD CAN BE MODIFIED TO ENABLE ITS USE FOR FORECASTING ENDOGENOUS PRICE CHANGES, UNDER CERTAIN ASSUMPTIONS.

Keywords

WHEAT
INPUT
PETROLEUM
ECONOMY
OUTPUT
DIVERSE
PRICE CHANGES
EXOGENOUS PRICE

This publication has 1 reference indexed in Scilit:

Outputs and prices in interindustry models
Papers in Regional Science, 1974