The return of regional multipliers: A comment

Gordon I. R. (1973) The return of regional multipliers: A comment, Reg. Studies 7, 257-262. Two important steps in the derivation of regional multiplier estimates are considered. First, the responsiveness of migration to regional income changes (largely ignored in earlier studies) is identified as an important determinant of the degree of leakage of marginal income into savings and taxes. A preliminary attempt is made at estimating the income elasticity of household numbers for British regions. Second, the use of freight survey data for estimation of regional trade is examined and its defects noted. Steele's (Reg. Studies 6, 115-130 (1972)) estimates of trade in goods are shown to exceed the upper bound set by gross production. The main source of error in the estimates is attributed to the application of foreign trade based value-weight ratios to broad commodity groupings.