I have a question about calibration.Thank you in advance for your help
Suppose that we want to calculate the consumption to production ratio in steady state (C_SS/Y_SS) based on the data:
My question is, which of the following data do we use?
C_SS at current prices/Y_ss at current prices?
C_SS at constant prices/Y_ss at constant prices?
In my opinion, there should be no difference between the two cases mentioned because we have used ratio:
Of course, when we extract data from sources and calculate this ratio based on these data, there is a difference between these two:
C_SS at current prices/Y_ss at current prices = 0.43
C_SS at constant prices/Y_ss at constant prices=0.54
Which of these two ratios should I use ? Which is more correct??