A Regional Projection and Simulation Model of the Austrian Economy

This monograph presents the conception, estimation and implementation of a multi-regional, multi- sectoral simulation model of the Austrian economy. It maps the regional and sectoral inter-dependencies between 32 economic sectors and five components of final demand in nine Austrian regions (Bundesländer). The core of the model comprises three parts, regional Input Output tables (which are consistent with the national table), an inter- regional trade matrix derived from a survey among Austrian firms), and a block of econometrically estimated behavioural equations (which are based on an extensive data base of regional time series). The model is formulated as a simultaneous system of linear and non-linear equations. Simulation and forecasting exercises demonstrate the model’s applicability and potential applications.