Analysis and Development of Price Models in the System MEANS of Intersectoral Balance

Abstract

At present, monetary models of equilibrium prices have received a very wide and varied application. In this paper it is proved that the application of the currently existing monetary models of the intersectoral balance is associated with significant methodical errors. It is shown that price models based on the input balance provides such a balance only in unreal cases when the prices of all sectors are the same. For realistic conditions, when these requirements are not met, errors for these models reach unacceptable values. This article proposes and thoroughly investigated new price models based on output balances which do not have the said drawbacks. It is mathematically proven that the new models satisfy the output balances and do not have methodical errors. When used, they provide zero output imbalances for both theoretical and realistic data packets. Also in the paper the calculation results are presented both for the existing monetary models of input-output balance and for new price models using a wide set of initial data. The calculations performed confirm the theoretical conclusions of the article. It is also proved that the Leontief price model is a special case of the generalized model of price indices proposed in the work.

Forecasting the price index on the energy market of Ukraine considering the effect of the “green” tariffs laws

“…Such changes are significant and permanent in the electricity markets. In [23] developed models of equilibrium prices and price indices within the framework of the theory of intersectoral balance, which do not have the specified shortcomings. However, in the Input-Output tables developed by the State Statistics Service of Ukraine, the electric energy sector is absent at all, it is combined with the gas and thermal energy sectors.…”

“…However, in the Input-Output tables developed by the State Statistics Service of Ukraine, the electric energy sector is absent at all, it is combined with the gas and thermal energy sectors. Therefore, it is also impossible to use the models [23].…”