This paper attempts to measure the extent of inter-regional economic interdependence between primary and redistribution incomes. This means that any change in final demand for goods and services in one region does not only lead to the change in output and income in that region but also leads to the change in redistribution income in that region as well as in the other regions. The change in income redistribution in the other regions is due to their changes in output and income, which, in turn, induces impacts on the final demands (household consumption and capital formation) and so on. A vicious cycle of intra- and inter-spatial economic flows can thus be observed.
Demonstrate
In the demographic-economic model presented by Miyazawa (1976), income from redistribution is treated as exogenous and it therefore appears as an exogenous variant. The difference of this study is that income received from redistribution is treated as endogenous variant. So, in this model, the totality of production income is not only induced by production income but also by redistribution of income among institutional units, intra-regionally and inter-regionally.