Integration of a regional input-output model with a spatial interaction model for localities. An application to the azores

The aim of this paper is to analyze the economic interdependencies between the regional and the local scale through the use of an economic model that integrates an Input-Output Model for the regional scale with a spatial interaction model for the local scale. Furthermore it is possible to show that multiplier effects vary considerably between areas if we consider the spatial disaggregation of income and the spatial distribution of consumption.