Through the application of the Macro Multiplier approach on a multi- sectoral model for the USA, the paper identies the "convenient" structure of a policy control on nal demand, oriented to a particular policy objective (industry output), focusing on the Information and Communication Tech- nology sector (ICT sector). The method used is based on a specic matrix decomposition that allows for the quantication of an aggregated scale-eect, called Macro Multiplier, that aects the objective (endogenous) variable each time the policy (exogenous) control assumes a specic structure. This type of quantication is of aggregated type, since the scalars obtained are valid for all sectoral components of both the policy variable and the objective variable. But it does not violate the conditions put forward by the aggrega- tion theory, since the aggregated Macro Multipliers are consistent with the multi-sectoral features of the model. Once identied the structures and the associated Macro Multipliers, the policy maker can have a complete picture of the patterns of the objective variable that can be attained and determine a "convenient" structure of the policy variable that compels the model towards those patterns. This is done choosing either one structure or a combination of the structures identied for the policy control. The application is done on data of the United State (U.S.) Input-Output table (Industry by Industry) for the year 2005. ICT manufacturing and service sectors are built following the indications of the OECD.

A convenient multi sectoral policy control for ICT in the USA economy

CIASCHINI, Maurizio;PRETAROLI, ROSITA;SOCCI, CLAUDIO
2007-01-01

Abstract

Through the application of the Macro Multiplier approach on a multi- sectoral model for the USA, the paper identies the "convenient" structure of a policy control on nal demand, oriented to a particular policy objective (industry output), focusing on the Information and Communication Tech- nology sector (ICT sector). The method used is based on a specic matrix decomposition that allows for the quantication of an aggregated scale-eect, called Macro Multiplier, that aects the objective (endogenous) variable each time the policy (exogenous) control assumes a specic structure. This type of quantication is of aggregated type, since the scalars obtained are valid for all sectoral components of both the policy variable and the objective variable. But it does not violate the conditions put forward by the aggrega- tion theory, since the aggregated Macro Multipliers are consistent with the multi-sectoral features of the model. Once identied the structures and the associated Macro Multipliers, the policy maker can have a complete picture of the patterns of the objective variable that can be attained and determine a "convenient" structure of the policy variable that compels the model towards those patterns. This is done choosing either one structure or a combination of the structures identied for the policy control. The application is done on data of the United State (U.S.) Input-Output table (Industry by Industry) for the year 2005. ICT manufacturing and service sectors are built following the indications of the OECD.
2007
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11393/46485
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