Input-output evidence on the relative price effects of total productivity shift

Theodore Mariolis (), Nikolaos Rodousakis and Antonia Christodoulaki

International Review of Applied Economics, 2015, vol. 29, issue 2, 150-163

Abstract: This paper provides empirical evidence on the relative price effects of a notional shift in total productivity using data from ten Symmetric Input-Output Tables of five European economies. The results suggest that the direction of the price-movements is, more often than not, governed by the (traditional) labour cost condition and this could be connected to the effective ranks of the matrices of the relative shares of the capital goods.

Date: 2015
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DOI: 10.1080/02692171.2014.956702

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