Propagation effects of taxes in Romania: An input-output analysis

Romanian Journal of Economics 01/2010; 30(1(39)):76-94.
Source: RePEc


The Input-Output model (IO) is an important tool of economic analysis, providing a predictive analysis framework for economic changes, if properly used. In developing measures, strategies, etc. at macro level it is important to identify the links that occur between branches of the economy for a better understanding of “enabler” branches which have the highest contribution to output creation. In this research the IO method was used to analyze effects of taxes within the Romanian economy, based on data provided by the National Institute of Statistics (NIS), using IO statistical tables for 2000 and 2006.

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    • "Zaman et al. (2010a) use the IO method to analyze effects of taxes within the Romanian economy, based on data provided by the National Institute of Statistics, with the help of IO statistical tables for 2000 and 2006. The main conclusion of testing the time-stability of technical coefficients (Zaman et al. 2010 b) is that the IO method can be used as a quantitative and qualitative instrument for analysis on short and medium term (not more than five years). Chen et al. (1986) explore, for example, the relationship between the stability of the allocation version of the IO model (Ghosh) and the conventional production version of the model (Leontief). "
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