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On the relationship between the supply-driven and the demand-driven input - output model

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  • E Dietzenbacher

Abstract

In this paper, the relationship between the assumptions in the supply-driven and the demand-driven input - output model is discussed. A necessary and sufficient condition is given for the stability of the input coefficients, the output coefficients, and both coefficients. For both models, the effects of a demand pull on the total outputs and on the primary inputs are analytically expressed. Also, the effect of a supply push on the total outputs and on the final outputs are expressed, again for both models. In general, the assumption of fixed input coefficients in the demand-driven model does not hold, but computations are still based on it. A necessary and sufficient condition is given for the correctness of the computed total outputs, both for a demand pull and a supply push. Similar results are obtained for the supply-driven input - output model.

Suggested Citation

  • E Dietzenbacher, 1989. "On the relationship between the supply-driven and the demand-driven input - output model," Environment and Planning A, Pion Ltd, London, vol. 21(11), pages 1533-1539, November.
  • Handle: RePEc:pio:envira:v:21:y:1989:i:11:p:1533-1539
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    Cited by:

    1. Ana-Isabel Guerra, 2011. "Merging the Hypothetical Extraction Method and the Classical Multiplier Approach: A Hybrid Possibility for Identifying Key Distributive Sectors," UFAE and IAE Working Papers 886.11, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    2. Louis de Mesnard, 2009. "Is The Ghosh Model Interesting?," Journal of Regional Science, Wiley Blackwell, vol. 49(2), pages 361-372.

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