Economic-Demographic Linkages in an Interregional Model

Abstract

This chapter examines procedures for estimating linkages between the economic and demographic modules within an integrated multipolicy, multiregional model. This model is designed to identify the joint and interdependent impacts of a set of policies—in areas such as environment, employment, energy, housing, and transportation—and the impact of one policy on another. The economic-demographic linkages discussed represent part of a larger set of linkages required to make this integrated model operational. Because of limitations of space, the fully integrated model is sketched quickly, thereby enabling the demographic-economic linkages to be developed more fully. Although there may still be skepticism about the operationality of the fully integrated model, the demographic and economic modules and linkages between them are operational given available data and the data processing required. The focus here will be on the Australian multiregional system, since Smith (1982) has made a comprehensive survey of the data available to support implementation of such a model.