The Effect of Public Works and Social Welfare Services in Inducing Production and Employment : Input-Output Analysis Using the Extended Leontief Multiplier Model

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  • 公共事業と社会福祉サービスの生産・雇用誘発効果の比較分析――拡大レオンチェフ乗数を用いた産業連関分析――
  • コウキョウ ジギョウ ト シャカイ フクシ サービス ノ セイサン コヨウ ユウハツ コウカ ノ ヒカク ブンセキ カクダイ レオンチェフ ジョウスウ オ モチイタ サンギョウ レンカン ブンセキ

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<p>The purpose of this paper is to estimate the effect of public works in inducing production and employment and that of social welfare services in inducing production and employment using Miyazawa’s extended Leontief multiplier model and to make a comparison between the two effects. Miyazawa’s extended Leontief multiplier model is able to estimate the combined effect of inducing production through interindustry transactions and inducing production through household’s consumption. Before making the above analysis. we reorganized the official input-output table in 1995 and produced a new input-output table which consists of 28 goods industries and 24 service industries. While the public works sector classified as a goods industry is a representative sector in stimulating economic activities. the social services sector is regarded as a growing sector in an aging society. In our analysis, we considered two concepts of consumption, that is, consumption in a narrow sense and consumption in a broad sense. Consumption in a narrow sense means that of households and consumption in a broad sense means the total consumption of all of economic agents, that is, households, non-households (firms), non-profit organizations and government. In either case, our result of the analysis shows that the difference between the effect of public works in inducing production and that of social welfare services in inducing production is within 1%. This suggests that not only public works but also social welfare services may be an option as means of stimulating economic activities.</p>

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