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

Journal of Economic Structures

The Official Journal of the Pan-Pacific Association of Input-Output Studies (PAPAIOS)

Table 2 Results of methods A, B and C for economy-wide gross output.

	2001	2002	2003	2004	2005	2006	2007	Mean
Economy-wide gross output, n = 130
(B − A)/A%	0.011	−0.033	−0.007	0.012	0.002	0.006	−0.009	−0.002
(C − A)/A%	0.008	−0.022	−0.002	0.012	0.001	0.001	−0.010	−0.002
(B − C)/C%	0.003	−0.011	−0.005	0.000	0.001	0.005	0.002	−0.001
Economy-wide gross output, n = 56
(B − A)/A%	0.028	0.026	0.042	0.033	0.001	−0.009	−0.005	0.017
(C − A)/A%	0.022	0.023	0.038	0.028	0.000	−0.008	−0.010	0.013
(B − C)/C%	0.006	0.004	0.004	0.006	0.001	−0.001	0.006	0.003
Aggregation difference: ${\| Δ % \|}_{n = 56} - {\| Δ % \|}_{n = 130}$
(B − A)/A%	0.017	−0.006	0.035	0.021	−0.002	0.004	−0.004	0.009
(C − A)/A%	0.014	0.001	0.036	0.015	−0.001	0.007	0.000	0.010
(B − C)/C%	0.004	−0.007	−0.001	0.006	−0.001	−0.004	0.004	0.000

All the percentage differences are exactly zero for year 2000 since it is the base year for the constant price IO tables. ${| Δ % |}_{n = 130}$ is the absolute value of the percentage difference when the number of sectors is n = 130. The exogenous final demand vector is the average of 2001-2007 final demand vectors in current prices, while the outcomes are gross outputs in constant prices whose overall percentage differences for methods A, B and C are reported.