Price Effects in Input-Output Relations: A Theoretical and Empirical Study for the Netherlands 1949–1967

1. Introduction.- 1.1 Preliminary remarks.- 1.2 Outline of the study.- 2. Theory of production and costs.- 2.1 Introduction.- 2.2. Assumptions underlying neo-classical theory of production and costs.- 2.3. Elasticities of substitution.- 2.4. On the existence of a unique cost minimum.- 2.5. Neo-classical theory of costs.- 2.5.1. General theory.- 2.5.1. Homogeneous production functions.- Appendix 2.A. Proof of theorem 1.- Appendix 2.B. Proof of corrolary 1.- Appendix 2.C. A generalization of lemma 2 of Barten, Kloek and Lempers.- Appendix 2.D. A modified version of proposition 7 of Shephard.- 3. Constant elasticities of substitution class of production functions.- 3.1. Introduction.- 3.2. Neo-classical properties of the CES production function.- 3.3. Application of the theory of costs to the h-homogeneous CES production function.- 3.4. The two-level CES production function.- Appendix 3.A. Theoretical restrictions on the parameters of the two-level CES production function.- Appendix 3.B. Derivation of input demand relations, the cost function, the Allen partial elasticities of substitution for the two-level CES production function and a reformulation for time series analysis.- 4. Theory of price effects in input-output relations: some models.- 4.1. Introduction.- 4.1.1. Traditional input-output analysis.- 4.1.2. Generalized input-output analysis: an overview.- 4.2. Generalization of input-output analysis based on one-level CES production functions.- 4.3. Introduction of technical change into the generalized input-output model.- 4.4. The two-level CES production function in input-output analysis.- 4.5. Aggregation of the demand relations for a firm to a demand relation.- of an industry.- 4.6. Two other studies dealing with substitutability in input-output analysis.- 4.6.1. The approach by Theil and Tilanus (1964).- 4.6.2. The approach by Kreyger (1978).- Appendix 4.A. The CBS classification of sectors.- Appendix 4.B. Constancy of input-output ratios.- 5. Methods of estimating price effects in input-output relations.- 5.1. Introduction.- 5.2. Conceptualization.- 5.3. Estimation of the model.- 5.4. Applying methods of estimation to generalized input-output models.- Appendix 5. A. Maximum likelihood estimation in case of autocorrelation within an input group.- 6. Estimated price effects in input-output relations: the Netherlands, 1949-1967.- 6.1. Introduction.- 6.2. Assembling the data.- 6.3. Performance of one-level CES models, 1949-1958, compared with traditional models.- 6.3.1. Parameter estimates.- 6.3.2. Predictive performance.- 6.4. Application of one-level CES models to 1949-1966.- 6.4.1. General.- 6.4.2. Comparison between methods.- 6.4.3. Comparison between models.- 6.5. Comparison of the estimates between the two periods of observation.- 6.6. Application of the two-level CES model.- 6.6.1. Performance of the two-level CES model, 1949–1958.- 6.6.2. Extension of the period of observation to 1949–1966.- 6.6.3. Comparison of the estimates between the two periods of observation.- 6.7. Summary of the conclusions.- Appendix 6.A. Tables relating to the one-level CES models.- Appendix 6.B. The statistics of Spearman, Theil and Somermeyer.- Appendix 6.C. Tables relating to the two-level CES model.- 7. Summary and conclusions.- Notes.- References.- Author’s index.