Gustav Schachter

The dynamic behavior of multiregional multisectoral models: A biregional application to the Italian economy

Abstract This paper deals with the dynamics of multiregional systems in which economic growth is strictly dependent on the capital accumulation process and multisectoral multiregional interactions evolve within a general equilibrium context. The input-output approach allows an analysis based on the structural properties of the matrices representing the linkages among the different parts of the multiregional economy. The singularity of the regional matrices of capital input coefficients is realistically imposed, and the forward-in-time projection of the model is made possible by a suitable partition of the system. Moreover, the existence and relative stability of a balanced growth path are discussed under the assumption that each sector in the economy requires, directly or indirectly, either some current flow or some capital input from all the other sectors operating in the same and in the other regions. The model is applied to the Italian economy at 1985 within a biregional framework.

Assessing Aggregate Structural Change

The aim of this paper is to investigate the evolution of Italian aggregate structural change over the years 1965-85. We use annual input-output (IO) tables in current and constant prices to derive an aggregate index of structural change. We adopt several techniques for such an explorative analysis. First, we borrow from qualitative matrix analysis and graph theory some basic concepts to assess direct and indirect links among sectors, and interrelatedness measures are derived in a straightforward way. However, qualitative analysis of indirect links may be flawed, since it can establish a path that is quantitatively negligible. Then, we turn our attention to a non-standard quantitative index derived from structural path analysis, expressed by a simple function of the input matrix determinant. Since empirical findings indicate a structural break in 1975, we derive another measure of technical change: the dominant eigenvalue. Such an index has several interesting properties but no clear relationship to the circularity process implicit in the Leontief model. Results for constant- and actual-price IO tables are discussed and compared with main macro-economic variables over the sample. Empirical findings indicate a relationship between investment, variability in final demand and aggregate structural change.

Structural change and economic development in Southern Italy

This article uses input‐output information to measure the detail of the industrial structure of the Italian South and the linkages between different industrial sectors. The basic hypothesis is that regional economic development will be associated with the variety of backward and forward linkages existing in a regional economy. This hypothesis is tested using linkage measures based on the concept of entropy applied to data from a multiregional input‐output system for Italy for five years between 1959 and 1975. The results show that levels of gross regional product and gross regional product per capita were higher in regions and years with diverse backward linkage measures.

The impact of mega‐infrastructure projects on urban development—Boston and the Messina Straits

Abstract The hypothesis of our research project in comparative urban development is that while large infrastructure projects impact the local economy, labour markets and the environment, the interactive response and linkages of the players may cancel benefits when project development and implementation are done without a proper planning framework. Empirically we consider the impact of the implementation of the artery‐tunnel project in Boston, Massachusetts, USA and the proposed fixed link over the Straits of Messina, Italy (the metropolitan area of Messina and Reggio Calabria). While the two areas vary in population, income and existing infrastructure, the impacts are similar in kind and are proportional in the same direction. The distortions derived from the lack of overall urban economic and physical planning are evident from the review of abundant partial studies, some rich in analytical content, but disconnected with the events in impacted space. Growing environmental issues, as well as economic chang...

Energy crisis and new international equilibrium

The author discusses the short-term and long-term aspects of the present energy crisis. He describes the various scenarios for the immediate future and the long run that could be given place by the emerging hold of OPEC over the oil consuming countries.

Export tariffs in central African Countries

In recent years the export tariff has Increasingly been abandoned as a policy tool by the developed countries, yet it has been maintained by the less developed countries.