IDEAS home Printed from https://ideas.repec.org/a/eee/streco/v79y2026icp262-268.html

A new perspective for the calculation of Ghosh-like forward multipliers

Author

Listed:
  • Lima, M. Carmen
  • Sancho, Ferran

Abstract

The tools currently used to identify and measure forward effects in disaggregated multi-sector models are widely considered inadequate. While the multi-sector approach is broadly accepted, the Ghosh classical model (1958), commonly employed in these analyses, has faced substantial criticism for two primary reasons. First, the model fails to accurately represent the technological characteristics of a market economy. Second, it gives rise to conceptual inconsistencies in the relationship between value-added and output levels. To overcome these limitations, we propose a new and straightforward replication method, grounded in standard theory, for identifying and measuring forward effects. Although this approach departs from the Ghosh model, it retains the core principle of examining the dependence of output on value-added.

Suggested Citation

  • Lima, M. Carmen & Sancho, Ferran, 2026. "A new perspective for the calculation of Ghosh-like forward multipliers," Structural Change and Economic Dynamics, Elsevier, vol. 79(C), pages 262-268.
    • Handle: RePEc:eee:streco:v:79:y:2026:i:c:p:262-268
    DOI: 10.1016/j.strueco.2026.05.006
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0954349X2600086X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.strueco.2026.05.006?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Ana-Isabel Guerra & Ferran Sancho, 2011. "Revisiting The Original Ghosh Model: Can It Be More Plausible?," Working Papers 11.02, Universidad Pablo de Olavide, Department of Economics.
    2. Lenzen, Manfred, 2003. "Environmentally important paths, linkages and key sectors in the Australian economy," Structural Change and Economic Dynamics, Elsevier, vol. 14(1), pages 1-34, March.
    3. Ana-Isabel Guerra & Ferran Sancho, 2011. "Revisiting The Original Ghosh Model: Can It Be Made More Plausible?," Economic Systems Research, Taylor & Francis Journals, vol. 23(3), pages 319-328, February.
    4. Kurz, Heinz D, 1985. "Effective Demand in a "Classical" Model of Value and Distribution: The Multiplier in a Sraffian Framework," The Manchester School of Economic & Social Studies, University of Manchester, vol. 53(2), pages 121-137, June.
    5. Erik Dietzenbacher, 2002. "Interregional Multipliers: Looking Backward, Looking Forward," Regional Studies, Taylor & Francis Journals, vol. 36(2), pages 125-136.
    6. Louis De Mesnard, 2009. "Is The Ghosh Model Interesting?," Journal of Regional Science, Wiley Blackwell, vol. 49(2), pages 361-372, May.
    7. Manresa, Antonio & Sancho, Ferran, 2013. "Supply and demand biases in linear interindustry models," Economic Modelling, Elsevier, vol. 33(C), pages 94-100.
    8. Chander, Parkash, 1983. "The nonlinear input-output model," Journal of Economic Theory, Elsevier, vol. 30(2), pages 219-229, August.
    9. Antonio Manresa & Ferran Sancho, 2020. "A follow-up note on the plausibility of the Leontief and Ghosh closed models," Economic Systems Research, Taylor & Francis Journals, vol. 32(1), pages 166-172, January.
    10. Maurizio Ciaschini & Claudio Socci, 2007. "Bi†Regional Sam Linkages: A Modified Backward And Forward Dispersion Approach," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 19(3), pages 233-254, November.
    11. Umed Temurshoev & Jan Oosterhaven, 2014. "Analytical and Empirical Comparison of Policy-Relevant Key Sector Measures," Spatial Economic Analysis, Taylor & Francis Journals, vol. 9(3), pages 284-308, September.
    12. Jan Oosterhaven, 2012. "Adding Supply-Driven Consumption Makes The Ghosh Model Even More Implausible," Economic Systems Research, Taylor & Francis Journals, vol. 24(1), pages 101-111, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chen, Quanrun & Chen, Xikang & Pei, Jiansuo & Yang, Cuihong & Zhu, Kunfu, 2020. "Estimating domestic content in China’s exports: Accounting for a dual-trade regime," Economic Modelling, Elsevier, vol. 89(C), pages 43-54.
    2. Fidel Aroche Reyes & Marco Antonio Marquez Mendoza, 2021. "Demand-Driven and Supply-Sided Input–Output Models," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 19(2), pages 251-267, June.
    3. Christos Tsirimokos, 2025. "A Comprehensive Input–Output Analysis Model for Quantifying Environmental Linkages and Leakages: Evidence from Greece," Biophysical Economics and Resource Quality, Springer, vol. 10(1), pages 1-22, June.
    4. Juan C. Surís-Regueiro & José L. Santiago, 2016. "An Input-Output methodological proposal to quantifying socio economic impacts linked to supply shocks," Working Papers 1603, Universidade de Vigo, Departamento de Economía Aplicada.
    5. Manresa, Antonio & Sancho, Ferran, 2013. "Supply and demand biases in linear interindustry models," Economic Modelling, Elsevier, vol. 33(C), pages 94-100.
    6. Linn Svegrup & Jonas Johansson & Henrik Hassel, 2019. "Integration of Critical Infrastructure and Societal Consequence Models: Impact on Swedish Power System Mitigation Decisions," Risk Analysis, John Wiley & Sons, vol. 39(9), pages 1970-1996, September.
    7. Martínez-García Miguel Á. & Cámara Ángeles, 2022. "Impact of an Economic Crisis on Youth Employment: Evidence from 2008 Financial Crisis in Spain," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 16(1), pages 276-287, January.
    8. Maurizio Droli & Ting Fa Margherita Chang & Luca Iseppi & Livio Clemente Piccinini, 2014. "Managing Trade Contacts in HotRest Intermediate Markets: A Resource-Based View Analysis in EU Countries," Tourism Economics, , vol. 20(4), pages 757-778, August.
    9. Almeida, Lucas Milanez de Lima & Balanco, Paulo Antonio de Freitas, 2020. "Application of multivariate analysis as complementary instrument in studies about structural changes: An example of the multipliers in the US economy," Structural Change and Economic Dynamics, Elsevier, vol. 53(C), pages 189-207.
    10. Marquez, Marco, 2022. "Supply, demand and economic growth in Mexico in the period 1980–2016," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    11. Alfredo Mainar-Causapé & Yolanda Martínez, 2025. "The impact of the EU’s farm-to-fork strategy on member states’ economies: which countries will suffer the most?," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 13(1), pages 1-21, December.
    12. Angeles Cámara & Ana Medina, 2021. "Measuring the economic impact of immigrant workers exit from Madrid region labor market," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 49, pages 65-88.
    13. Lach, Łukasz, 2022. "Optimization based structural decomposition analysis as a tool for supporting environmental policymaking," Energy Economics, Elsevier, vol. 115(C).
    14. Li, Jia Shuo & Zhou, H.W. & Meng, Jing & Yang, Q. & Chen, B. & Zhang, Y.Y., 2018. "Carbon emissions and their drivers for a typical urban economy from multiple perspectives: A case analysis for Beijing city," Applied Energy, Elsevier, vol. 226(C), pages 1076-1086.
    15. Cámara Angeles & Martínez Mª Isabel & Santero-Sánchez Rosa, 2020. "Macroeconomic cost of excluding persons with disabilities from the workforce in Spain," IZA Journal of Labor Policy, Paradigm & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 10(1), pages 1-21, March.
    16. Oosterhaven, Jan, 2017. "Key Sector Analysis," Research Report 17015-GEM, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    17. Gurgul, Henryk & Lach, Łukasz, 2019. "Eco-efficiency analysis in generalized IO models: Methods and examples," MPRA Paper 96604, University Library of Munich, Germany.
    18. Serafeim POLYZOS & Dimitrios KANTIANIS & Thomas KRABOKOUKIS, 2024. "Examining The Cross-Industry Relations In The Greek Economy During The Economic Crisis Using I-O Analysis," Theoretical and Empirical Researches in Urban Management, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 19(4), pages 5-27, November.
    19. Stefanie Klose & Stefan Pauliuk, 2021. "Quantifying longevity and circularity of copper for different resource efficiency policies at the material and product levels," Journal of Industrial Ecology, Yale University, vol. 25(4), pages 979-993, August.
    20. Jan Oosterhaven & Michiya Nozaki, 2014. "The impact of production and infrastructure shocks to the Japanese inter-regional economy: A non-linear input-output programming approach," ERSA conference papers ersa14p163, European Regional Science Association.

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:streco:v:79:y:2026:i:c:p:262-268. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/525148 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.