Abstract:

This paper suggests a model of obtaining estimates of capital stock based on the theory of ‘flexible accelerator’. However, this represents a rather ‘indirect’ method independently for each year and each region. Clearly this is an unrealistic condition, especially for regional economies characterized by mutual spatial dependence. To add an extra injection of realism, we illustrate how a national model of capital stock (the stock –flow model) can effectively be ‘regionalized’

Publisher's Version