Input-output impact analysis in current or constant prices : does it matter?

Erik Dietzenbacher; Umed Temurshoev

This paper addresses the question whether the results of input-output (IO) impact analyses differ (and to what extent) when a framework in current prices or in constant prices is used. We consider the effect of an exogenous stimulus of final demand in current prices on (a) gross output in constant prices, and (b) employment. In an empirical application to Denmark, we found that all predicted effects were very similar. This holds in particular for the results at the aggregate, economy-wide level and, to a lesser extent, at the sectoral level.

MoreLess

Year of publication:	2012
Authors:	Dietzenbacher, Erik ; Temurshoev, Umed
Published in:	Journal of economic structures : JES; the official journal of the Pan-Pacific Association of Input-Output Studies (PAPAIOS). - Heidelberg : SpringerOpen, ISSN 2193-2409, ZDB-ID 2679924-8. - Vol. 1.2012, p. 1-18
Subject:	input-output tables \| impact analysis \| current prices \| constant prices \| Input-Output-Analyse \| Input-output analysis \| Preisniveau \| Price level \| Modellierung \| Scientific modelling \| Schätzung \| Estimation \| Dänemark \| Denmark