Author
Faculty member of the Faculty of Economics, Allameh Tabatabai University
Abstract
An Intersectoral Capital Coefficients Matrix contains the main features of the structural parameters of an economy. One of its main functions is the role it plays in dynamic input - output models. It is also used as a tool in forecasting the economic variables.
In this paper, the net capital stocks are used to estimate the intersectoral capital coefficients. For our purpuse, the use of the net capital stocks appear to be appropriate for the life spans of the various fixed capital goods. It can also be used in certain methods for the calculation of the depreciation of real assets.
We have used experiences of other countries in estimating the intersectoral capital matrix, by adding the net fixed capital matrix and the inventory matrix. The intersectoral net fixed capital matrix consists of fifteen capital demander sectors and three supplyer sectors as follow: a) Machinary, b) Motor vehicle equipments, C) Construction.
The average life spans of the above sectors are respectively 16, 10, 50 years.
The intersectoral capital coefficients matrix for the year 1370 is obtained by dividing the elements of each column of the capital matrix to the value of output of each relevant sector. We have made use of the average capital- output ratios in our calculations.
In our study, we have found out that the calculated coefficients of the Iranian economy are comparable with many other countries.
To estimate the maximum possible growth rate of our economy, one can make use of the intersectoral capital coefficients matrix in a dynamic input-output model. One can also use it for economic planning and in the prediction of some economic variables.
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