Demographics in Demographic—Economic Models: A Note on the Basic Activity—Commodity Framework

Abstract

The significant contributions of demographic—economic modelling to the area of impact assessment are recognised, but it is argued that much greater attention must be focused on the demographic components of these models. In particular, distinctions between household types must be treated more adequately, and mechanisms for changes in household type must be articulated and refined. The inadequacy of the current state of demographic—economic models in this regard is demonstrated by a reconsideration of the early basic formulation of Madden and Batey, upon which much of the subsequent literature draws. The simple failure of this model to allocate new jobs to unemployed nonheads of households illustrates the need for increased focus on the demographic aspect of demo—economic models.