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A Comparison Of Input-Output Models:Ghosh Reduces To Leontief (But 'Closing' Ghosh Makes It More Plausible)

Author

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  • Ana-Isabel Guerra

  • Ferran Sancho

Abstract

Ghosh's model is discussed in this paper under two alternative scenarios. In an open version we compare it with Leontief's model and prove that they reduce to each other under some specific productive conditions. We then move onto reconsidering Ghosh's model alleged implausibility and we do so reformulating the model to incorporate a closure rule. The closure solves, to some extent, the implausibility problem very clearly put out by Oosterhaven for then value-added is correctly computed and responsive to allocation changes resulting from supply shocks.

Suggested Citation

  • Ana-Isabel Guerra & Ferran Sancho, 2010. "A Comparison Of Input-Output Models:Ghosh Reduces To Leontief (But 'Closing' Ghosh Makes It More Plausible)," UFAE and IAE Working Papers 823.10, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    • Handle: RePEc:aub:autbar:823.10
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    Cited by:

    1. is not listed on IDEAS
    2. Yongyou Nie & Yunhuan Gao & He He, 2022. "Modelling Structural Effect and Linkage on Carbon Emissions in China: An Environmentally Extended Semi-Closed Ghosh Input–Output Model," Energies, MDPI, vol. 15(17), pages 1-17, August.
    3. Fujii-Gambero, Gerardo & Cervantes-Martínez, Rosario, 2015. "Origin and Destination Sectors of Indirect Domestic Value Added Embodied in Mexico's Manufacturing Exports," MPRA Paper 72977, University Library of Munich, Germany, revised 2016.
    4. Chen, Li & Wemhoff, Aaron P., 2021. "Predicting embodied carbon emissions from purchased electricity for United States counties," Applied Energy, Elsevier, vol. 292(C).

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    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 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies

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