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Sekerka - Kyn - Hejl:  Price Calculations

7. Data for Computations

As original data for calculation of all the types of prices the input-output data of 96 branches in value terms, compiled by the Central Commission of People's Control and Statistics for the year 1962 were used. For our case, however, these data had to be adjusted and complemented.

At first, the original 96 branches were aggregated into 48 new branches. The reasons for this aggregation were as follows:

a) The aim of our experimental calculations was primarily  the verification of computing methods and preliminary analysis of the results. It seemed therefore adequate to give preference to a smaller matrix which would lead to a more simple and faster processing.

b) The matrix of production funds necessary for the calculation of some types of prices  was not available for all of the 96 branches.

For the price-calculations the total production of each branch has to be expressed in homogenous prices. Therefore, the turnover tax was deducted from the input-output data. This implies that the computed indices express relative increases in comparison to 1962 wholesale prices. Or, more precisely, these prices were consumer prices without turnover tax, i.e.. e. wholesale prices with the trade margin added.
In order to obtain,  all the  costs of production it was necessary to include the depreciation into the technical coefficients. Therefore, the depreciation was "allocated" into the whole first quadrant of the input-output table. Of course this allocation could have been only approximate and therefore certain inaccuracies could have appeared in the resulting prices.
It was necessary to complete the data of production funds, which are not included in the input-output table. Data currently collected by the statistical service were used for this purpose. These data are classified according to the scheme of the input-output table, they are, however, collected on the enterprise base and not on the base of pure branches. This is a source of the further inaccuracy. Further it has been not possible to distribute the production funds data completely into the square matrix, but only into the five rows according to the origin of these funds (other rows remained zero), which again causes some inaccuracies in calculations. Production funds data in purchase (cost) prices and in "residual" values (after deducting the depreciation) have been used alternately.

In the process of calculations the influence of foreign trade on prices was not taken into consideration. This means that all the costs (even in the case of imported products) were evaluated according to prices of home products. This fact also distorts to a certain degree the results, especially in some specific branches in which the home costs are substantially different from the import prices.

 

 

 

 

 

 

 

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