SIMPLIFIED LOCAL ECONOMIC MODEL

(http://faculty.washington.edu/~krumme/207/development/model1.html)


The General Model



				   Savings
			           -------
				      ^
				      |
        _______                       |
	|     |			   _________	
	| IEA |			   |       |
	|  ^  |			   |       |	    Direct Household
        |  |  |                    |       |        Imports
 	|  |  | Wages / Salaries   |  Hh   |-------)(Mail/ Online Ordering,
	|  |  |---------------------)      |         Tourism etc.)
Exports	| DEA |      elc           |_______|
 --------)____|			     |   ^
	   |			 pcl |   | iclcs
	   |			     |   |
	   |			     V 	 |
	   |		          _______________
	   |			  |              |	   Import Payments
	   V			  |Local Services|-------) (Hondas from Ohio)
	-------		          |______________|
	Import
	Payments
Hh = Households
DEA = Direct Export Activities
IEA = Indirect Export Activities
elc = export labor coefficient (labor intensity of DEA & IEA)
pcl = propensity to consume locally
iclcs = income created per (dollar of) local consumption sales
........(wages/salaries/profits)

A past 350-student's graphic effort (Wes Shephard [2000])

Return to: Numerical Milltown Model

Return to Econ & Bus Geography
2001 [econgeog@u.washington.edu]