Relative prices and deflation of relative prices and deflation of input-output tables: Implications for structural analysis
DOI:
https://doi.org/10.13133/2037-3651/17867Keywords:
input-output tables, deflation, relative prices, Brazil, MexicoAbstract
This paper aims to compare the technical coefficients at current and deflated prices according to three deflation methods (single deflator, sectoral deflators, and specific deflators) and identify how it impacts the analysis of the structural changes. The comparison is made for Brazil and Mexico based on the World Input-Output Tables (WIOT) between 2000 and 2014. The central hypothesis is that, depending on the deflation method used, sectors that have a significant variation in relative prices may have their technical coefficients increased/decreased without this being related to the inputs needed to produce an additional unit of product. The most important conclusion is that the results observed for the two economies are not indifferent to the deflation method used, having implications for the analysis of structural changes.
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