The anatomy of a multiplier

Abstract

Archer B. H. (1976) The anatomy of a multiplier, Reg. Studies 10, 71–77. Some disagreement still exists amongst economists about the exact meaning and concept of the regional multiplier and the nature of the multiplicand. This paper attempts to clarify the situation, firstly by means of a simple income formula and, secondly, by reference to a tourist multiplier model. The latter originally tested on Anglesey data and later used as the basis for studies in Tayside and Cardiganshire shows firstly how the multiplicand can be disaggregated to investigate direct first round leakages and secondly how subsequent indirect and induced regional income and employment generation can be measured.

Keywords:

• Regional multipliers
• Leakages
• Simple model
• Tourist regional model
• Multiplicand
• Income and employment generation
• Applications of the model