earticle

영어

Basically, the multiplier effects derived from the models of IO(input- output), OO(output-output), and FF(final demand-final output) between total output( x ), final output ( o ), and final demand( f ) are based on the unrestricted(or unconstrained) conditions in financing constraints. However, in the real economic activity, if a new injection program focused on sector  needs a reduction of expenditure in the remaining sectors, for i ≠ j , so as to maintain the total budget constraints of the government. On the basis of the latest research findings and results from the multiplier analysis under constraints in the recent economic literature, the specific objectives of this paper can be summed up as follows. (1) We testify the importance and necessity for the multiplier analysis under constraints through the limitations of the multiplier effects in the models of I(input), IO, OO, and FF. (2) We derive the model for the multiplier analysis under constraints and show the economic characteristics and usefulness of the model developed by the author. (3) We empirically calculated the multiplier effects under constraints by endogenous sectors through the output requirements for final demand(or Leontief inverse Cf ) from the raw data of the 2010 Input-Output Tables of Korea. Moreover, the Pearson correlation coefficients(PCC), rp , and the Spearman’s rank correlation coefficients(SRCC), rs , are calculated between the constrained multipliers and the decompositions of effects.