Price Effects in Input-Output Relations: A Theoretical and Empirical Study for the Netherlands 1949-1967

1. Introduction -- 1.1 Preliminary remarks -- 1.2 Outline of the study -- 2. Theory of production and costs -- 2.1 Introduction -- 2.2. Assumptions underlying neo-classical theory of production and costs -- 2.3. Elasticities of substitution -- 2.4. On the existence of a unique cost minimum -- 2.5. Neo-classical theory of costs -- Appendix 2.A. Proof of theorem 1 -- Appendix 2.B. Proof of corrolary 1 -- Appendix 2.C. A generalization of lemma 2 of Barten, Kloek and Lempers -- Appendix 2.D. A modified version of proposition 7 of Shephard -- 3. Constant elasticities of substitution class of production functions -- 3.1. Introduction -- 3.2. Neo-classical properties of the CES production function -- 3.3. Application of the theory of costs to the h-homogeneous CES production function -- 3.4. The two-level CES production function -- Appendix 3.A. Theoretical restrictions on the parameters of the two-level CES production function -- Appendix 3.B. Derivation of input demand relations, the cost function, the Allen partial elasticities of substitution for the two-level CES production function and a reformulation for time series analysis -- 4. Theory of price effects in input-output relations: some models -- 4.1. Introduction -- 4.2. Generalization of input-output analysis based on one-level CES production functions -- 4.3. Introduction of technical change into the generalized input-output model -- 4.4. The two-level CES production function in input-output analysis -- 4.5. Aggregation of the demand relations for a firm to a demand relation -- of an industry -- 4.6. Two other studies dealing with substitutability in input-output analysis -- Appendix 4.A. The CBS classification of sectors -- Appendix 4.B. Constancy of input-output ratios -- 5. Methods of estimating price effects in input-output relations -- 5.1. Introduction -- 5.2. Conceptualization -- 5.3. Estimation of the model -- 5.4. Applying methods of estimation to generalized input-output models -- Appendix 5. A. Maximum likelihood estimation in case of autocorrelation within an input group -- 6. Estimated price effects in input-output relations: the Netherlands, 1949-1967 -- 6.1. Introduction -- 6.2. Assembling the data -- 6.3. Performance of one-level CES models, 1949-1958, compared with traditional models -- 6.4. Application of one-level CES models to 1949-1966 -- 6.5. Comparison of the estimates between the two periods of observation -- 6.6. Application of the two-level CES model -- 6.7. Summary of the conclusions -- Appendix 6.A. Tables relating to the one-level CES models -- Appendix 6.B. The statistics of Spearman, Theil and Somermeyer -- Appendix 6.C. Tables relating to the two-level CES model -- 7. Summary and conclusions -- Notes -- References -- Author’s index.