THE DEVELOPMENT OF REGIONAL ECONOMETRIC MODELS

THE DEVELOPMENT OF REGIONAL ECONOMETRIC MODELS

This paper aims to review some of the former specifications of regional econometric models and points out some important deficiencies (lacks) of them. By taking into consideration these missing features it is tried to develop a more reliable and complete model, which involves regionally controllable variables. The key terms are conceptual model, functional region, preference function, policy variables, environmental protection, btocfarecursive, preliminary multiplier and total (final) multiplier.