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The Demand for Domestic Output and Imports in the U.K.: A Dynamic Systems Approach

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  • Pain, Nigel
  • Westaway, Peter

Abstract

This paper is concerned with the allocation of total final expenditure between different categories of domestic net output and imported goods and services. In contrast to previous studies, the authors show that the use of net output data means that allowance has to be made for both consumer preference and the structure of production technologies, since the latter determine the demand for intermediate products. They argue that the full complexity of the relationships between different products can only be properly captured through the simultaneous estimation of a disaggregated sectoral model and report econometric estimates using U.K. quarterly data over a period from 1968 to 1991. Copyright 1996 by Blackwell Publishers Ltd and The Victoria University of Manchester

Suggested Citation

  • Pain, Nigel & Westaway, Peter, 1996. "The Demand for Domestic Output and Imports in the U.K.: A Dynamic Systems Approach," The Manchester School of Economic & Social Studies, University of Manchester, vol. 64(1), pages 1-21, March.
    • Handle: RePEc:bla:manch2:v:64:y:1996:i:1:p:1-21
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    Cited by:

    1. Joe Ganley & Chris Salmon, 1997. "The Industrial Impact of Monetary Policy Shocks: Some Stylised Facts," Bank of England working papers 68, Bank of England.
    2. Pain, Nigel & Young, Garry, 2004. "The macroeconomic impact of UK withdrawal from the EU," Economic Modelling, Elsevier, vol. 21(3), pages 387-408, May.

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