The Influences of Energy Price Variation on the Prices of Other Industries: A Study Based on Input-Output Price Model

Abstract We try to examine the potential of input-output price model to identify mechanisms of price formation and transmission. Contrary to previous research 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.JEL: C67, E31, E37

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Un modèle de projection des prix utilisant les relations intersectorielles de l’économie canadienne

L Actualité économique ◽

10.7202/800606ar ◽

2009 ◽

Vol 51 (1) ◽

pp. 71-85

Author(s):

R. Rioux

Keyword(s):

Commodity Prices ◽

Price Formation ◽

Input Output ◽

Price Model ◽

Primary Input ◽

Time Period ◽

Statistics Canada ◽

The Impact ◽

Push Model ◽

Input Prices

This paper describes a simple cost-push price model which has been developed at the Structural Analysis Division of Statistics Canada. This price model is a traditional input/output cost-push model which has been adapted to utilize the rectangular industry by commodity input/output tables for Canada. It can be considered as the "dual" of the output model. Instead of analysing the propagation of demand through the economic system, the price model serves to analyse the propagation of factor prices throughout the system. The purpose of such a price formation model is to determine the impact on industry selling prices and domestic commodity prices arising from a change in impart commodity prices and primary input prices. This price model is of a static type; it accepts no substitutions and its structure is quite rigid. It is considered as being an annual model although it can be used for a different time period. This model is fully operational and is widely used by many government and private agencies.

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Energy price variation and competitiveness: Firm level evidence from Indonesia

Energy Economics ◽

10.1016/j.eneco.2017.08.015 ◽

2017 ◽

Vol 67 ◽

pp. 242-254 ◽

Cited By ~ 6

Author(s):

Jun Rentschler ◽

Martin Kornejew

Keyword(s):

Energy Price ◽

Firm Level ◽

Price Variation

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Study on Effect of Oil Price Rising on China’s General Price Level

Advanced Materials Research ◽

10.4028/www.scientific.net/amr.347-353.3836 ◽

2011 ◽

Vol 347-353 ◽

pp. 3836-3841

Author(s):

Shu Sen Gui ◽

Hai Lin Mu ◽

Nan Li

Keyword(s):

Price Level ◽

Price Change ◽

Price Impact ◽

Oil Price ◽

Input Output ◽

Price Model ◽

Economic Sectors ◽

General Price Level ◽

Rate Of Increase ◽

The Impact

This paper analyzes and evaluates the oil price change on effects of China’s general price level and economic sectors’ price level by adopting the input-output price model and input-output of China in 2007. In the case of oil price rise 100%: Compare with the results over the years show that oil price impact on the whole society increased year by year, and the rate of increase present accelerated tendency; Compare with the other energy sector, the impact of oil prices level is generally lower than the price of electricity and heat levels.

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