SIGNIFICANCE AND NECESSITY OF UPDATING THE MATRIX OF TECHNICAL COEFFICIENTS IN INPUT-OUTPUT ANALYSIS
SIGNIFICANCE AND NECESSITY OF UPDATING THE MATRIX OF TECHNICAL COEFFICIENTS IN INPUT-OUTPUT ANALYSIS

Summary/Abstract: Technical coefficients as products, or rather as derived categories derived from empirical data woven into cross-sectoral tables, are conditioned primarily by technical progress as well as substitutions among inputs in the process of reproduction in the national economy. The dynamics of technical progress in the production structure of the national economy is very complex and uneven. Depending on the observed period, large differences between production sectors are possible in terms of the size of their technical progress. It depends primarily on the trend in the expansion and application of new production processes, the introduction of new raw materials and finally the substitution of a certain part of the input in production processes. We can see that recently there has been a trend of increasing specific consumption of electricity and natural gas as a result of intensifying the mechanization of production processes and insisting on cheaper and renewable energy sources. The demand of economic policy makers, especially Western countries, to replace the use of fossil energy sources with solar and atomic energy, as well as greater use of biogas, energy from wind farms and electricity production using tidal energy is becoming more frequent. At the same time, there is a rationalization of the consumption of certain raw materials and reproductive material as a result of the use of robotics in industry, and there are also many forms of substitution of natural materials with artificial ones. The general trend of technical progress in the national economy must be understood as the sublimation of all individual or individual efforts and investments in changing and improving technology and production functions in the relevant segments of the national economy. Therefore, technical progress depends exclusively on the dynamics and size of investments. Since technical coefficients show direct dependence between production sectors of a national economy, their size depends on the technological equipment of the production system and they change depending on the dynamics and size of technical progress, there is a need to constantly update the matrix of technical coefficients and the inevitable use of intersectoral models as tools for predicting their changes. Having in mind that the priority is the use of technical coefficients in predicting the future structure of mutual relations of production sectors in the national economy, the measure by which the matrix of technical coefficients realistically reflects the macro production structure of the economy will also be a measure of objectivity in their economic analysi as well as in the prediction of further cause-consequence relationship among the sectors of production.

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