The Characteristics of the Productive Structure Behind the Empirical Regularities in Production Prices Curves

Luis Daniel Torres-González ()
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Luis Daniel Torres-González: Facultad de Economía, UNAM

No 2016, Working Papers from New School for Social Research, Department of Economics

Abstract: This paper identifies the characteristics of the productive structure behind the persistent monotonicity/ near monotonicity of industries’ relative prices, capital intensities, and capital-output ratio curves computed in production prices models with information from input-output accounts across economies. These characteristics are statistical in nature and refer to the strong proportionality between (i) the labor vector and the Perron-Frobenius eigenvector of the input-coefficient matrix and (ii) the columns of the input-coefficient matrix. It is shown that both statistical characteristics not only reduce the sources of nonlinearity in the curves but also produce the statistical tendency of capital intensities to cluster around central values with a limited variability irrespectively of the profit rate. The empirical results are based on the U.S. Benchmark Input-Output Accounts for the period 1977-2012.

Keywords: Production prices; capital intensities; spectral decomposition; productive structure (search for similar items in EconPapers)
JEL-codes: B51 C67 D57 (search for similar items in EconPapers)
Pages: 75 pages
Date: 2020-12
New Economics Papers: this item is included in nep-hme
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http://www.economicpolicyresearch.org/econ/2020/NSSR_WP_162020.pdf First version, 2020 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:new:wpaper:2016

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