Revisiting The Original Ghosh Model: Can It Be More Plausible?
AbstractWe reconsider in this paper the alleged implausibility of Ghosh’s model and we do so reformulating the model to incorporate an alternative closure rule. Our proposed closure rule is in line with the original allocation rules defined by A. Ghosh. The closure solves, to some extent, the implausibility problem that was pointed out by Oosterhaven for then value–added is correctly computed and responsive to allocation changes resulting from supply shocks. Some numerical examples illustrate the sectoral and aggregate consistency of the allocation equilibrium.
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Bibliographic InfoPaper provided by Universidad Pablo de Olavide, Department of Economics in its series Working Papers with number 11.02.
Length: 18 pages
Date of creation: Feb 2011
Date of revision:
Multi-sectoral Input-Output Models; Market Economy; Planned Economy;
Find related papers by JEL classification:
- C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
- C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
- P2 - Economic Systems - - Socialist Systems and Transition Economies
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- Louis de Mesnard, 2009. "Is The Ghosh Model Interesting?," Journal of Regional Science, Wiley Blackwell, vol. 49(2), pages 361-372.
- Xesús Pereira López & Melchor Fernández Fernández & André Carrascal Incera, 2012. "Algunas consideraciones acerca de los modelos input-output rectangulares," Documentos de trabajo - Analise Economica 0049, IDEGA - Instituto Universitario de Estudios e Desenvolvemento de Galicia.
- Manresa, Antonio & Sancho, Ferran, 2013. "Supply and demand biases in linear interindustry models," Economic Modelling, Elsevier, vol. 33(C), pages 94-100.
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