Unraveling the Household Heterogeneity in Regional Economic Models: Some Important Challenges

Geoffrey J.D. Hewings, Sang Gyoo Yoon, Seryoung Park, Tae Jeong Kim, Kijin Kim, Kurt Kratena

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

Regional modelers have spent a great deal of time and energy worrying about the level of sectoral aggregation but relatively little time considering the implications of aggregation of households into a representative household. In the US, households account for 70% of GDP on the expenditure side and increasing concerns about rising income inequality suggest that greater household disaggregation might be warranted. This paper provides a sampling of some evidence of the impacts for such disaggregation in regional econometric-input-output and computable general equilibrium models; attention is directed to disaggregation by age and income and a variety of experiments reveal the implications on a regional economy over the short- and long-run. Given the increasing attention on income distribution and inequality, the opportunity exists to provide important contributions to this literature by exploring the mechanisms of income formation, especially from non-wage and salary sources.

Original languageEnglish (US)
Title of host publicationRegional Research Frontiers
Subtitle of host publicationMethodological Advances, Regional Systems Modeling and Open Sciences
EditorsRandall Jackson, Peter Schaeffer
PublisherSpringer
Pages23-47
Number of pages25
Volume2
ISBN (Electronic)9783319505909
ISBN (Print)9783319505893, 9783319844367
DOIs
StatePublished - 2017

Publication series

NameAdvances in Spatial Science
ISSN (Print)1430-9602
ISSN (Electronic)2197-9375

Keywords

  • Human Capital
  • Human Capital Stock
  • Educational Investment
  • Gross Regional Product
  • Computable General Equilibrium Model

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Economics and Econometrics

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