research notes: The phantom of the matrix: Inverting the case on closure in Cole's model
In Closing the Case on Closure in Cole's Model Randall Jackson and Moss Madden critique my solution to the time-lagged regional input-output model. My rebuttal demonstrates that they: i) interpret my model incorrectly, ii) are inconsistent in their own specification, and iii) make inapplicable numerical comparisons between short- and long-term solutions. I show also iv) the correct solution to the totally closed model is neither trivial, nor singular, and v) this resolves the apparent paradox of infinite multipliers in a finite world. Moreover, vi) in my model, injecting exogenous demands equal to export earnings correctly reproduces the base output levels. The standard model does not meet this test.
Volume (Year): 78 (1999)
Issue (Month): 4 ()
|Note:||Received: 31 March 1999|
|Contact details of provider:|| Web page: http://link.springer.de/link/service/journals/10110/index.htm|
|Order Information:||Web: http://link.springer.de/orders.htm|
When requesting a correction, please mention this item's handle: RePEc:spr:presci:v:78:y:1999:i:4:p:429-436. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Christopher F Baum)
If references are entirely missing, you can add them using this form.