A Non-Possibility Theorem for Joint- Stability in Interindustry Models
AbstractJoint-stability in inter-industry models relates to the mutual simultaneous consistency of the demand-driven and supply-driven models of Leontief and Ghosh, respectively. Previous work has claimed joint-stability to be an acceptable assumption from the empirical viewpoint, provided only small changes in exogenous variables are considered. We show in this note, however, that the issue has deeper theoretical roots and offer an analytical demonstration that shows the impossibility of consistency between demand-driven and supply-driven models.
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Bibliographic InfoPaper provided by Barcelona Graduate School of Economics in its series Working Papers with number 580.
Date of creation: Sep 2011
Date of revision:
Interindustry modeling; joint-stability; demand-driven; supply-driven;
Other versions of this item:
- Ana-Isabel Guerra & Ferran Sancho, 2011. "A Non-Possibility Theorem For Joint-Stability In Interindustry Models," UFAE and IAE Working Papers 881.11, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
- C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
- O21 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy
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