beyond pt 0 23/1

Table C.3
Technology and household taste assumptions for sectors: (average annual
percentage changes)
(I) (II) (III)
Sector Household Technology:
preferences (a) Intermediate Primary-factor
input-using (b) using (c)
1 Agriculture, forestry and fishing 0.2 -0.1 -2.0
2 Mining -0.8 -1.0 -0.6
3 Food, beverages and tobacco 0.1 -0.2 -0.9
4 Textiles, clothing and footwear -1.6 -0.5 -1.9
5 Wood and wood products -0.5 -0.5 0.0
6 Paper, paper products, printing 1.5 -0.3 -0.2
7 Chemicals, petroleum, coal products 0.4 0.5 -0.1
8 Non-metallic construction materials -1.5 -0.3 -0.9
9 Basic metal products -0.1 0.6 -1.0
10 Cars and other transport equipment 0.6 0.9 -1.5
11 Electronic, other specialist equip. 2.5 1.5 -1.5
12 Leather, rubber, plastic products -0.3 -0.7 -0.1
13 Electricity, gas and water 0.2 0.2 -3.4
14 Construction 1.9 -0.1 0.0
15 Wholesale and retail trade -1.9 -1.5 0.0
16 Transport and storage 0.5 -0.3 -1.2
17 Communications 0.0 2.4 -5.5
18 Finance and business services 1.3 1.3 -2.8
19 Dwelling ownership 0.1 0.0 0.6
20 Public administration and defence -1.1 -0.7 -0.3
21 Health, education and welfare 0.7 -0.6 -0.3
22 Hospitality, leisure, other services 0.0 -0.4 0.0
(a)
(b)
(c)
Annual rate of shift of consumption function.
Annual rate of change of use of the commodity identified on the left-hand panel per unit of
output of industries using the commodity.
Annual rate of change of use of all primary factors (labour, capital and agricultural land) per
unit of production of the industry identified on the left.
In MONASH, household preferences are described by a utility function
leading to demand functions of the form:
X i
= H i
(P,C,T)
where: X i
is household preference for good i, H i
is consumption of good
i per household; P is a vector of commodity prices; C is total
consumption expenditure per household and T is a taste change variable.
The assumptions for these are summarised in column (I) of Table C.3. For
example, it was assumed that consumption of Electronic and other
specialist equipment (sector 11) will increase at a rate 2.5 per cent a year
faster than can be explained on the basis of changes in prices and changes
in the average budget of households.
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