A Note on Estimating the Importance of Interactions among Economic Entities
In a maximally simplified scheme, the economy is an immense network of interacting entities (individuals, households, firms, institutions, regions, countries, international unions), reducible in the last instance to an, again, huge graph of transactions (in the largest sense). Well known couples...
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| Format: | Article |
| Language: | English |
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Academy of Economic Studies of Bucharest
2019-08-01
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| Series: | Amfiteatru Economic |
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| Online Access: | http://www.amfiteatrueconomic.ro/temp/Article_2833.pdf |
| Summary: | In a maximally simplified scheme, the economy is an immense network of interacting entities
(individuals, households, firms, institutions, regions, countries, international unions),
reducible in the last instance to an, again, huge graph of transactions (in the largest sense).
Well known couples as seller-buyer, lender-borrower, exporter-importer, tax payer-fiscal
authority etc. personify this double-entry framework. The national accounts, input-output
tables, general equilibrium models are several modalities to configure and study this
complicated system in a coherent framework. A theoretical and applicative challenge
continues to be “how to evaluate quantitatively the relative importance of a given concrete
transaction from the perspective of the entire economy (the totality of transactions)”. The
present note tries to answer to such a problem starting from the positions detained in economy
by the involved in transactions entities. As an applicative example, there are used the
Romanian yearly input-output tables for 1989-2016. |
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| ISSN: | 1582-9146 2247-9104 |