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The Characteristics of the Productive Structure Behind the Empirical Regularities in Production Prices Curves

Author

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  • Luis Daniel Torres-González

    (Facultad de Economía, UNAM)

Abstract

This paper identifies the characteristics of the productive structure behind the persistent monotonicity/ near monotonicity of industries’ relative prices, capital intensities, and capital-output ratio curves computed in production prices models with information from input-output accounts across economies. These characteristics are statistical in nature and refer to the strong proportionality between (i) the labor vector and the Perron-Frobenius eigenvector of the input-coefficient matrix and (ii) the columns of the input-coefficient matrix. It is shown that both statistical characteristics not only reduce the sources of nonlinearity in the curves but also produce the statistical tendency of capital intensities to cluster around central values with a limited variability irrespectively of the profit rate. The empirical results are based on the U.S. Benchmark Input-Output Accounts for the period 1977-2012.

Suggested Citation

  • Luis Daniel Torres-González, 2020. "The Characteristics of the Productive Structure Behind the Empirical Regularities in Production Prices Curves," Working Papers 2016, New School for Social Research, Department of Economics.
    • Handle: RePEc:new:wpaper:2016
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    References listed on IDEAS

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    More about this item

    Keywords

    Production prices; capital intensities; spectral decomposition; productive structure;
    All these keywords.

    JEL classification:

    • B51 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Socialist; Marxian; Sraffian
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis

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