Constant price input-output and productivity surplus

Davide Rognini; Patrizio Lecca; Jorge Díaz-Lanchas; Davide Rognini; Patrizio Lecca; Jorge Díaz-Lanchas

doi:10.3934/NAR.2025026

National Accounting Review

2025, Volume 7, Issue 4: 630-648. doi: 10.3934/NAR.2025026

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Research article

Constant price input-output and productivity surplus

1.
Department of Economics, Comillas Pontifical University, 23 Alberto Aguilera St., 28015 Madrid, Spain
2.
Institute for Research in Technology, Comillas Pontifical University, 4 Rey Francisco St., 28008 Madrid, Spain

Received: 18 July 2025 Revised: 18 October 2025 Accepted: 01 December 2025 Published: 19 December 2025
JEL Codes: C67, D24, D57, E31

In this paper we showed that the results of input-output impact analyses can vary significantly depending on whether current prices or constant prices are used, particularly when the deflation method differed from the conventional double deflation approach. We quantified the transfer of productivity surplus from constant price input-output tables obtained by applying appropriate price indices through a single deflation method. Focusing on the Spanish economy during the period 2010–2019, we analyzed the redistribution of this surplus among sectors. We algebraically defined the rule for distributing productivity gains across sectors in response to an exogenous demand shock. Due to the presence of forward and backward productivity linkages, sectors may experience productivity gains or losses, irrespective of where the demand shock originates.
- Input-Output,
- constant prices,
- single deflation,
- productivity surplus,
- Spain
Citation: Davide Rognini, Patrizio Lecca, Jorge Díaz-Lanchas. Constant price input-output and productivity surplus[J]. National Accounting Review, 2025, 7(4): 630-648. doi: 10.3934/NAR.2025026

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Abstract

In this paper we showed that the results of input-output impact analyses can vary significantly depending on whether current prices or constant prices are used, particularly when the deflation method differed from the conventional double deflation approach. We quantified the transfer of productivity surplus from constant price input-output tables obtained by applying appropriate price indices through a single deflation method. Focusing on the Spanish economy during the period 2010–2019, we analyzed the redistribution of this surplus among sectors. We algebraically defined the rule for distributing productivity gains across sectors in response to an exogenous demand shock. Due to the presence of forward and backward productivity linkages, sectors may experience productivity gains or losses, irrespective of where the demand shock originates.

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