1. A TEST OF CURRENT VERSUS CONSTANT DOLLAR INPUT-OUTPUT MULTIPLIERS: THE MISSOURI CASE.
- Author
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Harmston, Floyd K. and Chow, Wayne S.
- Subjects
INPUT-output analysis ,ECONOMETRIC models ,PRODUCTION (Economic theory) ,MONEY ,MATHEMATICAL models - Abstract
Economist Wassily W. Leontief had developed a model to test current versus constant dollar input-output multipliers for Missouri, an economy in which imported inputs played a very small role. He had also developed an argument for the assumption that coefficients comprise a set of technological parameters in linear homogeneous production functions having fixed proportion among the inputs. Leontief's model was expressed in terms of physical quantities of inputs necessary for the production of certain physical quantities of outputs. Another economist Lawrence Klein challenged the assumption of technical coefficients. His argument was that, even if it were possible to disaggregate to the firm level, the problem of joint products would be found; since such disaggregation is unlikely, the problem is further compounded by aggregation. Klein's conclusion was that the input-output model is one in which the inter-industry coefficients are not associated with any set of basic structural parameters, therefore there was no reason to suppose that constant dollar coefficients would be any more stable over time than current dollar ones.
- Published
- 1980
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