A multi-regional, multi-sectoral model of the Austrian economy
This project, which will be conducted in co-operation with the Austrian Institute of Economic Research (WIFO), is based on the regional Input-Output models which have been developed during the last 5 years. The focus of the multi-regional model, which is to comprise all 9 Austrian provinces, will no longer be single regions but rather the interactions between them. The modelling of this interactions presents formidable challenges; on the other hand, once the model is operating, it offers intriguing possibilities: for example, in impact analysis, besides the estimation of total impacts, it allows for an approximation of the regional distribution of economic effects. This is especially important in the modelling of the public finances, since the finances of the federal state on the one hand and the provinces on the other hand are closely interlinked via the legal instrument of the “Finanzausgleich” (“financial compensation”).