Applying the input–output price model to identify inflation processes
Abstract We try to examine the potential of input–output price model to identify mechanisms of price formation and transmission. Contrary to previous research that focused on overcoming the specific limitations of the model, we test its overall performance. In the presented study, the historical val...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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SpringerOpen
2022-04-01
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| Series: | Journal of Economic Structures |
| Subjects: | |
| Online Access: | https://doi.org/10.1186/s40008-022-00264-w |
| _version_ | 1817976331944591360 |
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| author | Michał Przybyliński Artur Gorzałczyński |
| author_facet | Michał Przybyliński Artur Gorzałczyński |
| author_sort | Michał Przybyliński |
| collection | DOAJ |
| description | Abstract We try to examine the potential of input–output price model to identify mechanisms of price formation and transmission. Contrary to previous research that focused on overcoming the specific limitations of the model, we test its overall performance. In the presented study, the historical values of the commonly used consumer price index were decomposed according to the classic input–output price model for an open economy. A sequence of ex post simulations under various assumptions was used to identify the sources of inflation. This study required the use of input–output tables in current and previous year’s prices. The proposed method of decomposition might be a starting point to create a framework for studying different aspects of inflation process. |
| first_indexed | 2024-04-13T22:02:07Z |
| format | Article |
| id | doaj.art-78d21bb9f1a544b3b90ccd1e9f9ec2b3 |
| institution | Directory Open Access Journal |
| issn | 2193-2409 |
| language | English |
| last_indexed | 2024-04-13T22:02:07Z |
| publishDate | 2022-04-01 |
| publisher | SpringerOpen |
| record_format | Article |
| series | Journal of Economic Structures |
| spelling | doaj.art-78d21bb9f1a544b3b90ccd1e9f9ec2b32022-12-22T02:28:04ZengSpringerOpenJournal of Economic Structures2193-24092022-04-0111111110.1186/s40008-022-00264-wApplying the input–output price model to identify inflation processesMichał Przybyliński0Artur Gorzałczyński1Faculty of Economics and Sociology, University of ŁódźFaculty of Economics and Sociology, University of ŁódźAbstract We try to examine the potential of input–output price model to identify mechanisms of price formation and transmission. Contrary to previous research that focused on overcoming the specific limitations of the model, we test its overall performance. In the presented study, the historical values of the commonly used consumer price index were decomposed according to the classic input–output price model for an open economy. A sequence of ex post simulations under various assumptions was used to identify the sources of inflation. This study required the use of input–output tables in current and previous year’s prices. The proposed method of decomposition might be a starting point to create a framework for studying different aspects of inflation process.https://doi.org/10.1186/s40008-022-00264-wInflationInput–output price modelCost-push price formationExchange rate pass-through |
| spellingShingle | Michał Przybyliński Artur Gorzałczyński Applying the input–output price model to identify inflation processes Journal of Economic Structures Inflation Input–output price model Cost-push price formation Exchange rate pass-through |
| title | Applying the input–output price model to identify inflation processes |
| title_full | Applying the input–output price model to identify inflation processes |
| title_fullStr | Applying the input–output price model to identify inflation processes |
| title_full_unstemmed | Applying the input–output price model to identify inflation processes |
| title_short | Applying the input–output price model to identify inflation processes |
| title_sort | applying the input output price model to identify inflation processes |
| topic | Inflation Input–output price model Cost-push price formation Exchange rate pass-through |
| url | https://doi.org/10.1186/s40008-022-00264-w |
| work_keys_str_mv | AT michałprzybylinski applyingtheinputoutputpricemodeltoidentifyinflationprocesses AT arturgorzałczynski applyingtheinputoutputpricemodeltoidentifyinflationprocesses |