MODEL OF REGIONAL CONSUMPTION EXPENDITURES MULTIPLIER
The purpose of this model is to measure the impact of localization of new (mostly industrial) enterprises in strategic industrial zone in regional economy. Model deals with multiplication effect of regional consumption expenditures, which is (among others) strongly affecting development of regional economy. For modeling the regional consumption demand or regional consumption expenditures there was used mainly microeconomic approach based on utility and profit maximization. The model is based on several simplifying assumptions for better use in real applications (mainly because of lack of relevant regional data). This model was used in practice for ex-ante evaluation of impact of strategic industrial zone in Cheb but it could be applied widely (after some modifications) for anticipation of regional impacts of demand shocks, regional migration, investments etc.
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