The Ghosh model assumes that, in an input-output framework, each commodity is sold to each sector in fixed proportions. This model is strongly criticized because it seems implausible in the traditional input-output field. To answer to these critics, Dietzenbacher stresses that it can be reinterpreted as a price model: the Leontief price model is equivalent to the Ghosh model when this one is interpreted as a price model. This paper shows that the interpretation of the Ghosh model as a price model cannot be accepted because Dietzenbacher makes a strong assumption, dichotomy, while the Ghosh model does not determine prices...
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Paper provided by LATEC, Laboratoire d'Analyse et des Techniques EConomiques, CNRS UMR 5118, Université de Bourgogne in its series LATEC - Document de travail - Economie (1991-2003) with number
2001-03.
Length: 11 pages Date of creation: Feb 2001 Date of revision: Handle: RePEc:lat:lateco:2001-03
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Find related papers by JEL classification: C67 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Input-Output Models D46 - Microeconomics - - Market Structure and Pricing - - - Value Theory D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis