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This paper introduces a new specification for the nonparametric production-frontier based on Data Envelopment Analysis (DEA) when dealing with decision-making units whose economic performances are correlated with those of the neighbors (spatial dependence). To illustrate the bias reduction that the SpDEA provides with respect to standard DEA methods, an analysis of the regional production frontiers for the NUTS-2 European regions during the period 2000-2014 was carried out. The estimated SpDEA scores show a bimodal distribution do not detected by the standard DEA estimates. The results confirm the crucial role of space, offering important new insights on both the causes of regional disparities in labour productivity and the observed polarization of the European distribution of per capita income.

Analysis of the impact of the COVID-19 Pandemic on the state of Illinois’ economy, using an annual econometric-input-output model, revealed that even though the initial or direct impacts were concentrated in three sectors, Construction, Trade and Transportation and Hotel and Leisure Activities, the indirect effects were felt throughout the economy. The multiplier or ripple effects from the loss of jobs in the three most affected sectors penetrated throughout the state as a result of losses of purchases on inputs from other sectors (the value-chain effect) and, most critically, from the loss of wages and salaries. The negative income effect resulted in decreases in total consumption, as well as significant re-allocations of consumption to more grocery expenditures (with a concomitant decrease in, for example, restaurant purchases) and especially a pronounced decrease in the purchase of durable goods as households became more risk adverse. An estimated initial loss of 400,000 direct jobs would lead to a further indirect loss of 150,000 jobs for a total loss of 550,000 jobs. Given the significant degree of interconnectedness of sectors in the Illinois economy, recovery is likely to take time as many of the directly affected sectors are associated with expenditures made by business and tourist visitors to the state; with travel restrictions in place, as well as limitations on dining and cultural activities (many of which have been cancelled), the external economic stimuli will remain at low levels.

Recently, a significant share of the empirical analysis on the impact of public capital on regional growth has used multivariate time-series frameworks based on vector autoregressive (VAR) models. Nevertheless, not as much attention has been dedicated to the analysis of the long-run determinants of regional growth processes using multi-region panel data and applying panel integration and co-integration techniques. This paper estimates the dynamic domestic effects of public infrastructure using a structural vector autoregressive (S-VAR) methodology for the Spanish regions. From a methodological point of view, the paper contains several features that can be viewed as a contribution to the existing empirical literature. First, the important issues of the stationarity of the data and the existence and estimation of cointegrating relationships in the long-run are addressed in the context of the analysis of panel data. Secondly, the long-run cointegrating production function is embedded within structural vector error correction (S-VEC) shortrun models to produce consistent estimates of impulse responses, contrary to many researchers who have estimated unrestricted VAR models in levels or VAR models in first differences. The estimates reveal new results with respect to the previous empirical evidence., Recientemente, un porcentaje significativo de los estudios empíricos que analizan el impacto del capital público sobre el crecimiento económico regional ha utilizado series temporales multivariantes basadas en modelos de vectores autoregresivos (VAR). En este contexto, no se ha prestado demasiada atención al análisis de los determinantes a largo plazo de los procesos de crecimiento regional utilizando paneles de datos multi-regionales y aplicando técnicas de integración y cointegración para paneles. Este trabajo estima los efectos domésticos dinámicos de las infraestructuras públicas utilizando una metodología de vectores autorregresivos estructurales (S-VAR) para las regiones españolas. Desde el punto de vista metodológico, el trabajo contiene distintas características que pueden ser vistas como una contribución a la literatura empírica existente. Primero, las importantes cuestiones de la estacionaridad de los datos y de la existencia y estimación de relaciones de cointegración en el largo plazo son abordadas en el contexto del análisis de los datos de panel. En segundo lugar, en los modelos de corto plazo de vectores de corrección de error estructurales (S-VEC) se tiene en cuenta la función de producción de cointegración en el largo plazo para producir estimaciones consistentes de las respuestas a impulsos; esto es contrario a lo que hasta ahora han hecho muchos investigadores, que han estimado modelos VAR sin restringir en niveles, o modelos VAR en primeras diferencias. Las estimaciones muestran resultados nuevos con respecto a la evidencia empírica previa.

In this paper we consider the matrix forms of the Sraffa-Leontief income distribution model introduced by Steenge (1995, 1997). We will explore the equivalence between these matrix forms and the set of simpler models, including the Sraffian condition of linear relations between the rate of profits r and wage rate w*. Further, we will evaluate the condition that the price vector p and the commodities vector x are the left-hand and the right-hand eigenvectors of the matrix A of direct inputs and that these vectors are the fixed points of the Sraffian standard commodities-standard prices matrix. We will then explore links between the Sraffa-Leontief system and the multiplier product matrix (MPM) for the matrix A to consider new insights generated through visualization with the help an artificial economic landscape. Furthermore, the connections between MPM and the Sraffian standard commodities-standard prices matrix and their minimal information properties are proven.

This study proposes a social-environmental economic model, based on Regional Sequential Interindustry Model (SIM) integrated with geoprocessing data, in order to identify economic, pollution and public health impacts in state and municipality levels for energy planning analysis. Integrating I-O framework with electrical and dispersion models, dose-response functions and GIS data, this model aims to expand policy makers’ scope of analysis and provide an auxiliary tool to assess energy planning scenarios in Brazil both dynamically and spatially. Moreover, a case study for wind power plants in Brazil is performed to illustrate its usage.

The objective of this work is to analyze the effects that an increase in the price of the water delivered to the agriculture sector to promote the conservation of this resource would have on the efficiency of the consumption of water and the possible reallocation of water to the remaining productive sectors. The analysis is motivated by the fact that the agriculture consumes a disproportionately large amount of water at very low prices –subsidized-. The methodology that will be used to explore the implications on the economy will be a computable general equilibrium model (CGE), previously designed for an analysis of the direct taxes of the Andalusian economy (Cardenete and Sancho, 2003), but now enhanced and extended to include emissions of pollutants and the introduction of environmental taxes (André, Cardenete and Velázquez, 2005). This model has been further modified to introduce the variations in the water price that we will try to analyze by means of a tariff applied on the production structure. The main conclusion drawn indicates that, although the tax policy applied does not correspond to a significant water saving in the above-mentioned sector, a reallocation of this resource is achieved which seems to generate a more efficient and more rational behavior from a production point of view.

Energy is the input in which modern society depends the most for life standard maintenance besides economic and social activities, however, it is also one of the major sources of greenhouse gases (GHG) emissions, especially the electric sector, due to a world energy matrix concentrated on oil and coal resources. Hereby, impact analysis is essential for policy making focused on sustainable energy systems, once it provides ex ante evaluations for the diverse effects of new projects, being especially important in relation to large infra-structure investments as power plants. In the Brazilian case, although the current electrical matrix is primarily renewable and has low GHG intensity, the required expansion of generation capacity leads to rediscuss power plants’ alternatives and their externalities. Due to the transient and heterogeneous demand of these projects, economic, environmental, energy and social impacts must be assessed dynamically and spatially. This study proposes a social-environmental economic model, based on Regional Sequential Interindustry Model (SIM) integrated with geoprocessing data, in order to identify economic, pollution and public health impacts in state and county levels for energy planning analysis. Integrating I-O framework with electrical and dispersion models, dose-response functions and GIS data, this model aims to expand policy makers’ scope of analysis and provide an auxiliary tool to assess energy planning scenarios in Brazil. Moreover, a case study for wind power plants in Brazil is performed to illustrate its usage.

The electrical sector is responsible for a considerable amount of greenhouse gases emissions worldwide, but also the one in which modern society depends the most for maintenance of quality of life as well as the functioning of economic and social activities. Invariably, even CO2 emission-free power plants have some indirect environmental impacts due to the economic effects they produce during their life cycle (construction, O&M and decommissioning). Thus, sustainability issues should be always considered in energy planning, by evaluating the balance of positive/negative externalities on different areas of the country. This study aims to introduce a social-environmental economic model, based on a Regional Sequential Interindustry Model (SIM) integrated with geoprocessing data, in order to identify economic, pollution and public health impacts in state level for energy planning analysis. The model is based on the Impact Pathway Approach Methodology, using geoprocessing to locate social-environmental variables for dispersion and health evaluations. The final goal is to provide an auxiliary tool for policy makers to assess energy planning scenarios in Brazil.

The study presents a Leontief-Miyazawa model to study personal and regional income inequality in Brazil. The economy is divided into 31 sectors, in 5 macro regions; households are allocated into 10 income brackets. The study identifies the contribution of different sectors to inequality. The model is used to simulate the capacity of social policies to reduce personal and regional inequality in the country. The analysis is conducted using the pro-poor “Bolsa Família” program which is a social program that provides direct income transfers to poor (with per capita income between BRL 60,01 and BRL 120,00) and extreme poor households (with per capita income below BRL 60,00). The results show that in the short run, the “Bolsa Família” program has proven to produce positive results, both at the personal income level and at the regional concentration level, and has surely paid large dividends in electoral terms. Solving inequality problems, however, might need other mid and long run policies which could improve competitiveness of lagging regions.

This paper attempts to elucidate one of the mechanisms that link trade barriers, in the form of port costs, and subsequent growth and regional inequality. Not only inland costs can be perceived as a further barrier to link trade liberalization and growth (Haddad and Perobelli, 2005), but also port costs. Unlike highway link, congestion at port may have severe impacts spread over space and time whereas highway link congestion may be resolved within several hours. Since port is part of the transportation network, any congestion/disruption is likely to ripple throughout the hinterland. In this sense, it is important to model properly the role nodal congestion plays in a context of spatial models and international trade. Thus, we have developed a spatial CGE model integrated to a transport network system in order to simulate the impacts of increases in port efficiency in a context of trade liberalization. The role of ports of entry and ports of exit are explicitly considered in order to grasp the holistic picture in an integrated interregional system.

Analysis of convergence has centered on movement of indices such as per capita incomes or welfare for countries or regions within countries. In this paper, the analysis focuses on the structure of economies in terms of the distribution of production across sectors and explores the implications of convergence of structure for a subset of EU countries. To assist in the exploration, some new methodology is introduced, based on the notion of a field of influence of change. A set of sensitivity indices and an associated importance matrix are constructed for a set of intercountry input-output tables. The results find that sectors at the European level are become more similar than the national economies as a whole.

Las matrices de contabilidad social (MCS) son un instrumento que permite ampliar la información proporcionada por el análisis imput-output al recoger además de las relaciones intersectoriales de una economía, el comportamiento de los consumidores, el sector público o el sector exterior, logrando así completar el flujo circular de la renta. En este trabajo utilizamos las matrices de contabilidad social para Andalucía correspondientes a los años 1990, 1995 y 1999 elaboradas en trabajos previos. Con dicha información realizamos un análisis estructural de la economía andaluza mediante la metodología denominada paths analysis y la descomposición de multiplicadores. Con estas técnicas obtendremos los cambios experimentados en la estructura productiva y cuantificaremos la influencia que han ejercido los shocks experimentados por cada sector sobre sí mismos y sobre el resto de sectores de esta economía regional. Finalmente, nos preguntaremos qué sectores han contribuido en mayor medida a la activación económica regional., Social accounting matrices (SAM) are an instrument that enlarges the information provided by the input-output analysis. These matrices study the intersectoral relationships of an economy, the behaviour of the consumers, the public sector or the foreign sector, as long as they complete the income flow of rent. In this work, we use the SAM for Andalusia (region southern Spain) 1990, 1995 and 1999, to conduct a structural analysis of the Andalusian economy by means of the "path analysis" methodology and a multiplier decomposition. With these techniques, we obtain the changes in productive structure and we quantify the influence of sectoral shocks on this regional enconomy. Finally, we also identify which sectors have most strongly contributed to the regional economic activity in the last decade.

In this paper, we examine regional inequalities in Turkey not only at the inter-provincial level but for three different regional definitions as well. The motivation draws on the findings of Gezici and Hewings(2001) that raised questions about inequalities not only between regions (inter-regional) but inequalities within each region. Hence, one contribution of this paper is to test the effects of aggregation and scale on the identification of regional inequalities. Spatial data analysis is employed to examine the spatial dimension of inequality in Turkey and the relationship between spatial dependence and the dynamics of growth. The results indicate that overall inequalities are decreasing, however spatial dependence is becoming more dominant. The Theil index indicates that interregional inequalities are increasing while intra-regional inequalities are declining for all spatial partitions from 1980 to 1997. Most developed provinces are enhancing overall inequalities, although there is some evidence of a spread effect on their neighbors.

In the development of models analyzing the impacts of free trade agreements between countries or regions within countries, relatively little attention has been paid to potential limitations imposed by transportation infrastructure. In free trade blocks such as those represented by the European Union or the USA and Canada part of NAFTA, the implicit assumption of little or no impact imposed by transportation infrastructure may be justified. However, in the case of MERCOSUL in South America, this assumption may need to be challenged. In this paper, an illustration of a potential approach to this problem will be illustrated with reference to Brazil. Attention will be devoted to the way in which the potential gains from free trade within MERCOSUL were mapped onto a highway transportation network to identify the creation of additional bottlenecks and point out the need of highway improvements once the impacts of economic development result in higher transportation costs due to such bottlenecks.

Using a set of interregional input-output tables built by Guilhoto (1998) for 1995 for two Brazilian regions (Northeast and rest of the economy), the methodology developed by Sonis et al. (1997) is applied in the construction of a series of linkages such that it is possible to examine, through the nature of the internal and external interdependencies, the structure of trading relationships between the two regions. The methodology uses a partitioned input-output system and exploits techniques that produce left and right matrix multipliers of the Leontief Inverse. This procedure facilitates the classification of the types of synergetic interactions within a preset pair-wise hierarchy of economic linkages subsystems. In general, the results show that the Northeast region has a greater dependence on the rest of the economy region than the rest of the economy has on the Northeast region, and at the same time the rest of the economy region seems to be more developed as it presents a more complex productive structure than the Northeast region.

In assessing the economic impact of a sector or group of sectors on a single or multiregional economy, input-output analysis has proven to be a popular method. . However, there has a problem in displaying all the information that can be obtained from this analytical approach. In this paper, we have tried to set new directions in the use of input-output analysis by presenting an improved way of looking at the economic landscapes. While this is not a new concept, a new meaning is explored in this paper; essentially, it will now be possible to visualize, in a simple picture, all the relations in the economy as well as being able to view how one sector is related to the other sectors/regions in the economy. These relations can be measured in terms of structural changes, production, value added, employment, imports, etc. While all the possibilities cannot be explored in this paper, the basic idea is given here and the smart reader can uncover all the various possibilities. To illustrate the power of analysis provided by the economic landscapes, an application is made to the sugar cane complex using an inter-regional input-output for the Brazilian economy, constructed for 2 regions (Northeast and Rest of Brazil), for the years of 1985, 1992, and 1995.

Using input-output tables for the economies of Brazil and the United States, this comparative study focuses on changes in the economic structure of two large countries with different levels of development over time (1958-77 for the United States and 1959-80 for Brazil). The change in the economic structure is decomposed into three initial components (final demand, technology, and their synergistic interaction) and thereafter these components are further divided into change initiated within the sector and outside the sector. The results indicate a rather remarkable degree of commonality in the patterns of growth processes in both countries,with more significant differences between sectors than between countries. The analysis confirmed earlier findings about the role of demand changes but was able to capture important differences in internal-to-sector versus external-to-sector sources of demand change.

Using a set of interregional input-output tables built by Guilhoto (1998) for the year of 1992 for 2 Brazilian regions (Northeast and rest of the economy), the methodology developed by Sonis, Hewings, and Miyazawa (1997) is applied in the construction of a series of linkages such that it is possible to examine, through the nature of the internal and external interdependencies giving by the linkages, the structure of trading relationships among the 2 regions. The methodology used in this work is based on a partitioned input-output system and exploits techniques that produce left and right matrix multipliers of the Leontief Inverse, this allows to classify the types of synergetic interactions within a preset pair-wise hierarchy of economic linkages sub-systems. 1 University

In this paper, using a set of interregional input-output tables built by the authors for the year of 1992 for 2 Brazilian regions (Northeast and rest of the economy), attention is focused on a new approach to the interpretation of Miyazawa’s concepts of left and right multipliers in the decomposition of interregional input-output systems. Using the technique of the multiplier product matrix (Sonis et al., 1997) and Sonis and Hewings (1999), the hierarchical decomposition proposed exploits the insights offered by the fields of influence theory and provides a way of interpreting Miyazawa’s left and right multipliers in terms of interregional feedback loops. When this technique is applied to an interregional system for 2 Brazilian regions (Northeast and the Rest of Brazil) the results shows that: (a) the Rest of Brazil region seems to be more developed and has a more complex productive structure than the Northeast region; (b) the inputs that the Northeast region buys from the Rest of Brazil region practically make no contribution to the total linkages in either of the regions; and (c) when isolated from the whole economy system, there is little contribution from the Northeast region to the linkages of the Rest of Brazil region, and vice-versa. Extension of this work could be considered in two directions, namely, providing sectoral detail and extending this approach to the n region case.

In this paper, an interregional computable general equilibrium model is used to evaluate the impacts of the changing macroeconomic environment of the Brazilian economy on the patterns of regional concentration and structural changes. The Brazilian Multisectoral and Regional/Interregional Analysis Model (B-MARIA) is the first fully operational interregional CGE model for Brazil. The model is based on the MONASH-MRF Model, which is the latest development in the ORANI suite of CGE models of the Australian economy. B-MARIA contains over 240,000 equations, and is currently used for policy analysis. Agents' behavior is modeled at the regional level, accommodating variations in the structure of regional economies. The model recognizes the economies of three Brazilian regions: North, Northeast and Center-South. Results are based on a bottom-up approach -- national results are obtained from the aggregation of regional results. 40 sectors/commodities are identified in each region. Transportation services and the costs of moving products based on origin-destination pairs are explicitly modeled, taking into account the specific transportation structure cost of each commodity flow, which provides spatial price differentiation. The discussion of alternative strategies of regional development for the country shows that the open policies of the 1990's and the national strategies for increasing international competitiveness are very likely to increase regional imbalances in Brazil.

This paper uses a set of international input-output tables constructed for selected Asian countries (and the USA) for the years of 1975 and 1985 to compare sectoral and intercountry changes over this decade. The analysis makes use of a framework developed by Guilhoto, Hewings, and Sonis (1996) where two literatures that have explored the structure of economics are combined, namely, approaches to key sector identification presented by Guilhoto et al. (1994) to reveal what may be referred to a pure linkage approach and the concerns of Miyazawa and his identification of internal and external multiplier effects. While Miyazawa was interested mainly in identifying the sources of change in an economy, his approach shares considerable commonality with the new ideas in key sector identification in which a sector or set of sectors are separated from the rest of the economy. The results reveal the importance of employing alternative measures of structure and structural change but the overall pattern of greater regional integration is readily apparent, paralleling findings for the European Union.

The recent discussions that focused on the problems of the Uruguay Round of the General Agreement on Tariffs and Trade [GATT] together with the emergence of strengthened and expanded free trade areas [such as NAFTA, European Union and MERCOSUL/MERCOSUR] have created the need for careful analysis of the nature of internal and external dependence among nations and, within any nation, among the constituent regions. The picture that is obtained from inspection of import and export flows is only one (and often the smaller) part of the nature of dependence; there is a need to consider the indirect effects and, in addition, the possible feedbacks that may accrue from expansion of links between any two countries rippling through a broader set of economies and returning to expand activity in the originating economy. However, until recently, a dearth of data precluded the type of analysis conducted here; the development of consistent intercountry input-output tables for Europe enabled the first attempt at an understanding of intercountry dependencies (see Sonis, Oosterhaven and Hewings, 1993). This paper will explore similar perspectives with a set of Asian intercountry input-output tables for 1985. In this paper, some new perspectives are advanced that provide a more comprehensive view of the interactions between the economies of Asia. The analysis focuses on the potential for uncovering alternative perspectives about the role of linkages and multipliers in input-output systems. The analysis draws on some pioneering work by Miyazawa in the identification of internal and external multiplier effects. Paths of direct and indirect dependency are revealed as well as the nature and strength of feedback loops. In addition, some potential exists for contibutions to the debate raised by Krugman (1991, 1993) on the role of regionalism versus multilaterialism. Using these methods, it is possible to provide insights into the way in which these economies are integrated, the strength of the integration and the potential consequences of action in one economy on the rest of the system. The analysis parallels some earlier work on the European economies and will provide the basis for future comparative analysis as updated tables are produced.

Attempts to identify key sectors in an economy with input output models have been a source of considerable debate. in this paper; several old and new approaches to the problem are evaluated with reference to the Brazilian economy using the input-output models for 1959, 1970 and 1975. Two alternative approaches are suggested in this paper. The first of these focuses on key coefficients through the identification of fields of influence associated with changes in these coefficients, including the effects of simultaneous changes in more than one coefficient. The second approach decomposes the interindustry transactions into a set (hierarchy) of flows. It is claimed that the flows associated with the higher levels of the hierarchy can be considered as the key flows or most important transactions. These new approaches are compared to earlier techniques to examine the degree to which important changes in the economy could be detected.

This paper investigates the formation of employment sub-centers from a new perspective of heterogeneity in agglomeration economies. Using highly granular commercial and residential land-use data (2001–2011) in Chicago, we measure how the locations of jobs, population, quality-of-life amenities, and transportation networks shape specific and heterogenous sub-centers. First, the results suggest that the CBD as it was traditionally defined is no longer the primary source of agglomeration externalities for the new economic sectors; sub-centers with sector-specific positive agglomeration externalities have stronger correlations with new commercial establishments. Secondly, residents appear to give the highest weight to quality-of-life amenities in choosing where to live. Both trends imply dis-incentives for CBD agglomeration. These findings connect the heterogeneous production theories with land use planning and urban design, through new empirical insights into how urban sub-centers grow. Furthermore, we put forward a method for forecasting of future sub-center growth through measuring changes in the probability of commercial development, and discuss its practical implications for planning and design in Chicago.

The present research concerns the study of input-output modelling and input-output table construction, when applied at the regional level. Input-output models, at the national or regional level, are known as a fundamental tool for economic analysis. Yet, in order to apply such models, the researcher must have access to the correspondent input-output tables. National-level tables are currently published by the national statistical offices according to well-defined conventions. The same, however, cannot be said about regional tables which are not provided as a rule by official statistics organisms. Being so, a great part of input-output research is still dedicated to the study of techniques for input-output table gathering. This dissertation is, in such context, divided into three chapters. The first one is mainly theoretical, aiming to review the basic principles underlying input-output analysis at the regional level. The second and third chapters constitute the research’s practical contribution, focused on two major issues, respectively: 1) interregional trade estimation and 2) input-output modelling on the basis of total-use rectangular table at purchasers’ prices. In most countries, survey-based interregional trade data does not exist. However, even when some simplifying assumptions are used in the model, a minimum amount of data on interregional trade is always necessary, in order for the model to succeed in capturing spillover and feedback effects caused by the interregional linkages. In order to evaluate the reasonability of using indirect interregional trade flows estimates, a comparison was made between alternative methodologies (with special focus on gravitational models), assessing the sensitivity of the model results. Such comparison allowed to conclude that the results of the input-output model are not greatly affected by the insertion of different trade flow values. Thus, the results obtained do not reject the reasonability of using indirect estimates for interregional trade, whenever survey-based data is unavailable. The official input-output tables are published on a total-use rectangular format, which is different from the lay-out upon which traditional input-output models were developed (domestic use symmetric tables). The objective here was to demonstrate the equivalence in the results of the input-output model between two alternative procedures: 1) to convert the available input-output table into a domestic-flow symmetric table at basic prices and then implement the input-output model; 2) to perform the direct modelling of the original table (the total-flow rectangular table at purchasers’ prices). It has been concluded that, when the same set of hypotheses is used, there is no advantage in making a previous transformation of the original tables into the symmetric format and a previous calculation of domestic flows, since the results of the model are exactly the same.