Income Multiplier Exercise: Results

http://faculty.washington.edu/krumme/350/exercises/multresults.html


  1. $40mill + $40mill x .8 = $72 mill x 1.25 = $90 mill


  2. Changes in Multipliers due to Changes & Variations of pcl

    1. First Method: Segmented Multipliers
  3. Basic Income Streams Overall Impacts
    % Share Absolute $ Multiplier
    Formula
    Income
    Multiplier
    Total Incomes
    40% $16mill 1/1 - (.6 x .25) 1.176 $18.82mill
    60% $24mill 1/1 - (.5 x .25) 1.143 $27.43mill
    old $32mill 1/1 - (.8 x .25) 1.25 $40.00mill
    Total $72mill (1.198) $86.25mill


  4. Alternative Method of Calculations
    Basic Income Expenditures are separated from Subsequent Rounds
  5. Basic Income Streams First Round Impacts
    % Share Absolute $ Formula Coefficient Total Incomes
    40% $16mill 1 + (.6 x .25) 1.15 $18.4mill
    60% $24mill 1 + (.5 x .25) 1.125 $27mill
    old $32mill 1 + (.8 x .25) 1.2 $38.4mill
    Total $72mill (1.163) $83.8mill
    $83.8mill - $72mill = 11.8 x 1.25 = $14.75mill + $72mill = $86.75mill


  • Change of Multiplier due to Change in ICLCS

    All above multipliers change as a result of changes in imports (import substitution) in the non-basic sector


  • New Coefficient Table reflecting all Changes in Basic and Non-Basic Activities as well as (Different) Households.

    New Matrix
    ("After all this has happened")

    [To be filled in!]

    To:

    From:

    A_T_C

    M_G_C

    Households I

    Households II

    Households III

    Local Services

    A T C

    0

    0

    0

    0

    0

    0

    Milltown Grey Cloth

    0

    0

    0

    0

    0

    0

    Households

    0

    0

    0

    0

    0

    0

    Local Services

    0

    0

    0

    0

    0

    0

    Imports

    0

    0

    0

    0

    0

    0

    Savings

    0

    0

    0

    0

    0

    0

    Total

    1.0

    1.0

    1.0

    1.0

    1.0

    1.0


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