Analysing consumer price changes by using input-output tables

Article type: Research Article

Authors: Donkers, H.W.J.¹ | van der Zwan, A.C.²

Note: [1] Harry W.J. Donkers was born in 1947. He graduated in econometrics from Tilburg University in 1975. During the period 1975–1977, he was active as a research worker at the department for health statistics of the Netherlands Central Bureau of Statistics. Since 1977, he is working as Chief of the division for price analysis at the department for price statistics of the CBS.

Note: [2] Arie C. van der Zwan was born in 1954. He graduated in economics from the Free University of Amsterdam in 1981. From 1981 until 1986 he has been employed at the department for price statistics of the Netherlands Central Bureau of Statistics, where this study was carried out. Currently he is working at the directory general of energy of the Netherlands Ministry of Economic Affairs.

Abstract: At the Netherlands Central Bureau of Statistics a method has been developed which provides insight into the relationships between developments in input costs and output prices. This method is based on input-output theory and is called “Price Analysis”. Starting from 1985, the Netherlands Central Bureau of Statistics is to issue an annual publication on this price analysis for the Dutch economy. The method takes into account the relationship between changes in input prices and in unit costs of inputs. Applications related to consumer price changes elucidate the transmission of price changes through the economy and the treatment of price and unit cost effects. Both aspects can be illustrated by an example relating to energy. The scope can be widened from just the energy branches to an analysis of the contributions of all branches of industry to consumer price changes. Finally, consumer price changes can be analysed in an alternative way by means of contributions of primary inputs, like imports, wages, etc.

DOI: 10.3233/SJU-1986-4207

Journal: Statistical Journal of the United Nations Economic Commission for Europe, vol. 4, no. 2, pp. 195-211, 1986