Could you please advise on the following: How to incorporate into a small regional model the leak of about 85% of the wages earned by in-commuters? In other words, how to exogenize those wages that should not be accounted for estimation of multipliers given that they are not spent locally. The employer of the incommuters (government) is the largest one in the regional economy. Because of this employer, the local economy looks wealthy but this is not the case. Members of this community would like to know their multipliers adjusting for the money they never see. Thanks.
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