TY - JOUR
T1 - A methodology to study price-quantity interactions in input–output modeling
T2 - an application to NextGenerationEU funds
AU - Cardenete, Manuel Alejandro
AU - Lima, M. Carmen
AU - Sancho, Ferran
N1 - Earlier versions of this paper were presented at the first Workshop on Environmental Economics and Policy in Granada, Spain, and at the 29th International IO conference in Alguer, Italy. We are grateful for the comments and suggestions provided by the participants. We also extend our appreciation to the referees and the Editor, professor Yasuhide Okuyama, for their constructive feedback and recommendations to improve this work, especially regarding the presentation of the model in Section 2. It goes without saying that any remaining errors or limitations are our sole responsibility.
PY - 2025
Y1 - 2025
N2 - The standard input–output (IO) model consists of two distinct and self-contained modules that describe the underlying factors governing quantities and prices. However, these modules operate independently, existing in separated spheres where prices do not influence quantities and quantities do not affect prices. This limitation restricts the standard model's ability to evaluate market dynamics that involve simultaneous changes in both quantities and prices. To overcome this limitation, we introduce an extended version of the traditional IO price and quantity models, combining them into a unified ‘price-quantity’ model that establishes connections between the two IO modules. We apply this integrated IO model to evaluate the impact of NextGenerationEU funds on the Spanish economy utilizing input–output and national accounts data for 2016.
AB - The standard input–output (IO) model consists of two distinct and self-contained modules that describe the underlying factors governing quantities and prices. However, these modules operate independently, existing in separated spheres where prices do not influence quantities and quantities do not affect prices. This limitation restricts the standard model's ability to evaluate market dynamics that involve simultaneous changes in both quantities and prices. To overcome this limitation, we introduce an extended version of the traditional IO price and quantity models, combining them into a unified ‘price-quantity’ model that establishes connections between the two IO modules. We apply this integrated IO model to evaluate the impact of NextGenerationEU funds on the Spanish economy utilizing input–output and national accounts data for 2016.
KW - Price-quantity feedback
KW - Expanded IO models
KW - Impact evaluation
UR - https://www.webofscience.com/api/gateway?GWVersion=2&SrcApp=uab_pure&SrcAuth=WosAPI&KeyUT=WOS:001204005700001&DestLinkType=FullRecord&DestApp=WOS_CPL
UR - https://www.mendeley.com/catalogue/095c513f-9d30-34b8-999e-6646cab79328/
UR - https://portalrecerca.uab.cat/en/publications/ed630268-c80d-4643-8323-abd1e8f137b4
UR - https://www.scopus.com/pages/publications/85190993844
U2 - 10.1080/09535314.2024.2337375
DO - 10.1080/09535314.2024.2337375
M3 - Article
SN - 0953-5314
VL - 37
SP - 244
EP - 262
JO - Economic Systems Research
JF - Economic Systems Research
IS - 2
ER -