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

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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)," Working Papers 450, Barcelona School of Economics.
    • Handle: RePEc:bge:wpaper:450
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    References listed on IDEAS

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    1. Frank Giarratani, 1980. "The Scientific Basis For Explanation In Regional Analysis," Papers in Regional Science, Wiley Blackwell, vol. 45(1), pages 185-196, January.
    2. Louis de Mesnard, 2009. "On the fallacy of forward linkages: A note in the light of recent results," LEG - Document de travail - Economie 2009-05, LEG, Laboratoire d'Economie et de Gestion, CNRS, Université de Bourgogne.
    3. Louis De Mesnard, 2009. "Is The Ghosh Model Interesting?," Journal of Regional Science, Wiley Blackwell, vol. 49(2), pages 361-372, May.
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    Cited by:

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    3. 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.

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    More about this item

    Keywords

    Multi-sectoral Input-Output Models; Market Economy; Planned Economy;
    All these keywords.

    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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