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National Accounting Review

2026, Volume 8, Issue 2: 150-162. doi: 10.3934/NAR.2026007
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Research article

A few things you always wanted to know about input-output multipliers, but were afraid to ask

  • Department of Economics, Universitat Autònoma de Barcelona, 08193-Bellaterra, Spain
  • Published: 27 March 2026

  • JEL Codes: C67, D57, D58

  • Policy evaluation relies on validated modelling tools. Among these, the interindustry model is one of the most widely used, primarily due to its mathematical simplicity, which facilitates the calculation of economy-wide multiplier effects resulting from policy-induced changes in final demand. However, this simplicity can lead to conceptual narrowness, potentially overlooking broader contextual factors. As Oosterhaven (2017, 2022) highlights, the issue of multipliers has two key dimensions: the numerical calculations and, more importantly, the modelling assumptions underlying these calculations, as they determine the relevance and validity of policy-related results. In this text, I explored this issue by comparing the outcomes that arise under different scenarios regulating the economy's adjustment to policy-induced changes. My findings suggests that classical multipliers may provide a biased perspective on an economy's structural behaviour.

    Citation: Ferran Sancho. A few things you always wanted to know about input-output multipliers, but were afraid to ask[J]. National Accounting Review, 2026, 8(2): 150-162. doi: 10.3934/NAR.2026007

    Related Papers:

  • Policy evaluation relies on validated modelling tools. Among these, the interindustry model is one of the most widely used, primarily due to its mathematical simplicity, which facilitates the calculation of economy-wide multiplier effects resulting from policy-induced changes in final demand. However, this simplicity can lead to conceptual narrowness, potentially overlooking broader contextual factors. As Oosterhaven (2017, 2022) highlights, the issue of multipliers has two key dimensions: the numerical calculations and, more importantly, the modelling assumptions underlying these calculations, as they determine the relevance and validity of policy-related results. In this text, I explored this issue by comparing the outcomes that arise under different scenarios regulating the economy's adjustment to policy-induced changes. My findings suggests that classical multipliers may provide a biased perspective on an economy's structural behaviour.



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  • © 2026 the Author(s), licensee AIMS Press. This is an open access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0)
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