Skip to main content
Article
Multiplier Analysis with Flexible Cost Functions
Economic Systems Research (1992)
  • Ferran Sancho, Universitat Autonoma de Barcelona
Abstract
The aim of this paper is to extend the computation of price multiplier matrices to encompass alternative factor substitution assumptions. Since classical multiplier analysis disregards attempts by firms to adapt to changing relative factor prices, estimated price effects will be overvalued. By allowing a choice of techniques, however, we may attain a better understanding of the cause-effect mechanism linking commodity prices with exogenous changes in factor prices.
Publication Date
1992
DOI
https://doi.org/10.1080/09535319200000029
Citation Information
Ferran Sancho. "Multiplier Analysis with Flexible Cost Functions" Economic Systems Research Vol. 4 (1992)
Available at: http://works.bepress.com/ferran_sancho/25/