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DOI: 10.15862/05ECOR118 (https://doi.org/10.15862/05ECOR118)

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Eremin V.V. The multiplier of autonomous spending in the regional economy. Russian journal of resources, conservation and recycling. 2018; 5(1). Available at: https://resources.today/PDF/05ECOR118.pdf (in Russian). DOI: 10.15862/05ECOR118

The multiplier of autonomous spending in the regional economy

Eremin Vladimir Vladimirovich
Russian state university for the humanities
Domodedovo branch, Russia
E-mail: villy9@rambler.ru

Abstract. The author presents the analysis of the influence of the multiplier of autonomous spending on the economy of the region. The economy of the Russian regions is currently facing a set of difficulties. On the one hand, incomes that are falling due to the economic crisis. On the other hand, the need to increase spending on education and health.

The development of the economy of the Russian regions is extremely urgent. In connection with a certain lack of financial resources for economic development of the regions, new, effective tools should be used. One option is to use the multiplier of autonomous spending as a tool for developing the economies of the regions.

The article reviews the positive and negative consequences of the influence of the multiplier of autonomous spending on the regional economy – from stimulating economic growth to inflation initiating.

It is determined that the lack of consideration of multiplicative effects in the development of regional economic development programs can lead to unplanned results. Programs become more risky and less accurate. Accounting for multiplicative effects will reduce risks and accelerate development.

It was revealed that in the context of managing the value of the multiplicative effect, it is necessary to take into account the connection between the multiplier of the macro-region and the multipliers of its micro-region economies. It is also necessary to take into account the influence of the sectoral structure of the economy of the micro-region on the value of its multiplier of autonomous expenditures.

Inflation under the influence of multiplicative effects can spread beyond the borders of the region, which complicates the management of the multiplicative process. In addition, the article refers to the quite significant impact on the magnitude of the multiplier of autonomous costs of institutional components that vary from region to region.

In general, the article concludes that, despite the complexity of using the multiplier as a tool for managing the regional economy, such use is possible. And in a crisis economy with a limited set of management tools, it is even necessary.

Keywords: the multiplier of autonomous spending; the accelerator of autonomous spending; economy of the region; economic growth; investment; inflation; fixed capital

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