Are input-output coefficients really fixed?

C-Tier
Journal: Applied Economics
Year: 2025
Volume: 57
Issue: 7
Pages: 753-776

Authors (3)

Marc Jim M. Mariano (not in RePEc) George Verikios (Griffith University) Kenneth W. Clements (not in RePEc)

Score contribution per author:

0.335 = (α=2.01 / 3 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

It is standard practice to treat input-output (I-O) technical coefficients as fixed. The coefficients are fixed when $\sigma $σ, the elasticity of substitution, is zero, a restriction mostly not supported by 25 years of I-O tables for Australia. We offer a simple way of allowing for variable coefficients with a CES approach. Finally, using various values of $\sigma $σ in CGE simulations establishes that taking coefficients as fixed has misleading economic implications.

Technical Details

RePEc Handle
repec:taf:applec:v:57:y:2025:i:7:p:753-776
Journal Field
General
Author Count
3
Added to Database
2026-01-25