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

  • Geoffrey J. D. HewingsEmail author
  • Sang Gyoo Yoon
  • Seryoung Park
  • Tae-Jeong Kim
  • Kijin Kim
  • Kurt Kratena
Chapter
Part of the Advances in Spatial Science book series (ADVSPATIAL)

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.

Keywords

Human Capital Computable General Equilibrium Model Gross Regional Product Educational Investment Human Capital Stock 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer International Publishing AG 2017

Authors and Affiliations

  • Geoffrey J. D. Hewings
    • 1
    Email author
  • Sang Gyoo Yoon
    • 2
  • Seryoung Park
    • 2
  • Tae-Jeong Kim
    • 2
  • Kijin Kim
    • 1
    • 3
  • Kurt Kratena
    • 1
    • 4
  1. 1.Regional Economics Applications LaboratoryUniversity of IllinoisUrbanaUSA
  2. 2.Bank of KoreaSeoulKorea
  3. 3.Asian Development BankManilaPhilippines
  4. 4.Centre of Economic Scenario Analysis and Research, Department of EconomicsLoyola University AndalucíaSevilleSpain

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