ac9b90c43d2288268c8b4ac064454bd9 theecolet_a2013v3p279iENG.pdf 423b4a47d1723f68a48741592918ea6f43549dfa theecolet_a2013v3p279iENG.pdf 21742993cf7c4e256707ceaf86034d6980ef9556ccb2276cee1e325a8f5d3bb0 theecolet_a2013v3p279iENG.pdf Title: Elucidating General Equilibrium Multiplier Effects: A Differential Perspective Subject: Expenditure multipliers are routinely used to evaluate the effectiveness of government spending. When interested in disaggregated effects, interindustry models provide the necessary tools to be able to look at very detailed sectorial results. These models are theoretically simple and empirically operational, which makes them easily implementable and therefore popular with policy makers. They miss, however, quite a bit of the interaction that takes place at the micro level. On the one hand, they ignore the role exerted by supply constraints in primary factors; on the other hand, they look at the world as though it is fully linear. We overcome these limitations by using an opposite Walrasian general equilibrium model to compute marginal multipliers. By using differential calculus, we also offer some insights regarding the “under-the-hood” circuits of influence. Keywords: Marginal Multipliers; General Equilibrium; Linear vs. Nonlinear Models Author: M. Alejandro Cardenete, Ferran Sancho Creator: Scientific Research Publishing Producer: Acrobat Distiller 9.0.0 (Windows); modified using iText® 5.4.4 ©2000-2013 1T3XT BVBA (AGPL-version) CreationDate: Mon Oct 21 08:23:38 2013 CEST ModDate: Mon Jul 7 15:59:27 2025 CEST Custom Metadata: no Metadata Stream: yes Tagged: yes UserProperties: no Suspects: no Form: none JavaScript: no Pages: 4 Encrypted: no Page size: 595 x 808 pts Page rot: 0 File size: 124830 bytes Optimized: yes PDF version: 1.5 name type encoding emb sub uni object ID ------------------------------------ ----------------- ---------------- --- --- --- --------- EOHAFK+TimesNewRomanPSMT CID TrueType Identity-H yes yes yes 495 0 EOHAHN+SymbolMT CID TrueType Identity-H yes yes yes 498 0 TimesNewRomanPS-BoldItalicMT TrueType WinAnsi no no no 500 0 TimesNewRomanPS-BoldMT TrueType WinAnsi no no no 502 0 EOHAFL+TimesNewRomanPSMT TrueType WinAnsi yes yes no 504 0 TimesNewRomanPS-ItalicMT TrueType WinAnsi no no no 506 0 ArialMT TrueType WinAnsi no no no 24 0 Jhove (Rel. 1.28.0, 2023-05-18) Date: 2025-07-09 02:13:11 CEST RepresentationInformation: theecolet_a2013v3p279iENG.pdf ReportingModule: PDF-hul, Rel. 1.12.4 (2023-03-16) LastModified: 2025-07-08 04:31:09 CEST Size: 124830 Format: PDF Version: 1.5 Status: Well-Formed and valid SignatureMatches: PDF-hul MIMEtype: application/pdf Profile: Linearized PDF, Tagged PDF PDFMetadata: Objects: 0 FreeObjects: 1 IncrementalUpdates: 0 DocumentCatalog: PageLayout: OneColumn PageMode: UseNone Filters: FilterPipeline: FlateDecode Images: Image: NisoImageMetadata: FormatName: image/png ImageWidth: 326 ImageHeight: 111 BitsPerSample: 4 BitsPerSampleUnit: integer Filter: FlateDecode Image: NisoImageMetadata: FormatName: image/png ImageWidth: 952 ImageHeight: 528 BitsPerSample: 8 BitsPerSampleUnit: integer Filter: FlateDecode Fonts: Type0: Font: BaseFont: EOHAHN+SymbolMT Encoding: Identity-H ToUnicode: true Font: BaseFont: EOHAFK+TimesNewRomanPSMT Encoding: Identity-H ToUnicode: true TrueType: Font: BaseFont: TimesNewRomanPS-BoldItalicMT FirstChar: 32 LastChar: 116 FontDescriptor: FontName: TimesNewRomanPS-BoldItalicMT Flags: Serif, Nonsymbolic, Italic FontBBox: -547, -307, 1401, 1032 Encoding: WinAnsiEncoding Font: BaseFont: TimesNewRomanPS-BoldMT FirstChar: 32 LastChar: 121 FontDescriptor: FontName: TimesNewRomanPS-BoldMT Flags: Serif, Nonsymbolic FontBBox: -558, -307, 2000, 1026 Encoding: WinAnsiEncoding Font: BaseFont: EOHAFL+TimesNewRomanPSMT FontSubset: true FirstChar: 32 LastChar: 243 FontDescriptor: FontName: EOHAFL+TimesNewRomanPSMT Flags: Serif, Nonsymbolic FontBBox: -568, -307, 2000, 1007 FontFile2: true Encoding: WinAnsiEncoding Font: BaseFont: ArialMT FirstChar: 32 LastChar: 32 FontDescriptor: FontName: ArialMT Flags: Nonsymbolic FontBBox: -665, -325, 2000, 1006 Encoding: WinAnsiEncoding Font: BaseFont: TimesNewRomanPS-ItalicMT FirstChar: 32 LastChar: 121 FontDescriptor: FontName: TimesNewRomanPS-ItalicMT Flags: Serif, Nonsymbolic, Italic FontBBox: -498, -307, 1333, 1023 Encoding: WinAnsiEncoding CIDFontType2: Font: BaseFont: EOHAHN+SymbolMT CIDSystemInfo: Registry: Adobe Registry: Identity Supplement: 0 FontDescriptor: FontName: EOHAHN+SymbolMT Flags: Symbolic FontBBox: 0, -220, 1113, 1005 FontFile2: true Font: BaseFont: EOHAFK+TimesNewRomanPSMT CIDSystemInfo: Registry: Adobe Registry: Identity Supplement: 0 FontDescriptor: FontName: EOHAFK+TimesNewRomanPSMT Flags: Serif, Symbolic FontBBox: -568, -307, 2000, 1007 FontFile2: true XMP: application/pdf M. Alejandro Cardenete, Ferran Sancho Expenditure multipliers are routinely used to evaluate the effectiveness of government spending. When interested in disaggregated effects, interindustry models provide the necessary tools to be able to look at very detailed sectorial results. These models are theoretically simple and empirically operational, which makes them easily implementable and therefore popular with policy makers. They miss, however, quite a bit of the interaction that takes place at the micro level. On the one hand, they ignore the role exerted by supply constraints in primary factors; on the other hand, they look at the world as though it is fully linear. We overcome these limitations by using an opposite Walrasian general equilibrium model to compute marginal multipliers. By using differential calculus, we also offer some insights regarding the “under-the-hood” circuits of influence. Elucidating General Equilibrium Multiplier Effects: A Differential Perspective Acrobat Distiller 9.0.0 (Windows); modified using iText® 5.4.4 ©2000-2013 1T3XT BVBA (AGPL-version) Marginal Multipliers; General Equilibrium; Linear vs. Nonlinear Models 2013-10-21T14:23:38+08:00 Scientific Research Publishing 2025-07-07T15:59:27+02:00 2025-07-07T15:59:27+02:00 uuid:a74ba6a0-9a9b-4653-acfc-a117a0ab94a7 uuid:593e6ab5-ffcd-4b00-915a-4d125524f721 Pages: Page: Label: 1 Page: Label: 2 Page: Label: 3 Page: Label: 4 Annotations: Annotation: Subtype: Link Rect: 328, 673, 455, 685 Flags: Print Annotation: Subtype: Link Rect: 328, 628, 500, 640 Flags: Print Annotation: Subtype: Link Rect: 328, 538, 500, 550 Flags: Print Annotation: Subtype: Link Rect: 328, 437, 500, 449 Flags: Print Checksum: 1b8c96b3 Type: CRC32 Checksum: ac9b90c43d2288268c8b4ac064454bd9 Type: MD5 Checksum: 423b4a47d1723f68a48741592918ea6f43549dfa Type: SHA-1 Checksum: 21742993cf7c4e256707ceaf86034d6980ef9556ccb2276cee1e325a8f5d3bb0 Type: SHA-256