Note: Earlier versions of this paper were presented at the conference “Input–Output and General Equilibrium: Data, Modeling and Policy Analysis” (September 2–4, 2004, Brussels), at the Fourteenth Input–Output Confence (June 25–July 1, 2005, Beijing), and at a seminar at the University of Oviedo (October 6, 2004). Useful suggestions by Marcel Timmer and two anonymous referees are gratefully acknowledged. The research by Los was funded by the Dutch Organization for Scientific Research NWO.
CONSUMPTION GROWTH ACCOUNTING
Article first published online: 28 AUG 2007
Review of Income and Wealth
Volume 53, Issue 3, pages 422–439, September 2007
How to Cite
Dietzenbacher, E., De Groot, O. J. and Los, B. (2007), CONSUMPTION GROWTH ACCOUNTING. Review of Income and Wealth, 53: 422–439. doi: 10.1111/j.1475-4991.2007.00244.x
- Issue published online: 28 AUG 2007
- Article first published online: 28 AUG 2007
The methodology in this paper combines an input–output structural decomposition approach with the supply-side perspective of mainstream growth accounting. In explaining the intertemporal change in consumption per worker, three sets of effects are distinguished. First, contributions due to several types of technological changes are considered. Second, effects caused by changes in international trade are discerned. Third, composition effects that reflect structural shifts in demand (including changes in tastes) are quantified. As an empirical illustration, we analyze the developments in the U.K. between 1979 and 1990.