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About the reinterpretation of the Ghosh model as a price model

Author

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  • Louis de Mesnard

    (LATEC - Laboratoire d'Analyse et de Techniques Economiques [UMR 5118] - UB - Université de Bourgogne - CNRS - Centre National de la Recherche Scientifique)

Abstract

The Ghosh model assumes that, in an input-output framework, each commodity is sold to each sector in fixed proportions. This model is strongly criticized because it seems implausible in the traditional input-output field. To answer to these critics, Dietzenbacher stresses that it can be reinterpreted as a price model: the Leontief price model is equivalent to the Ghosh model when this one is interpreted as a price model. This paper shows that the interpretation of the Ghosh model as a price model cannot be accepted because Dietzenbacher makes a strong assumption, dichotomy, while the Ghosh model does not determine prices.

Suggested Citation

  • Louis de Mesnard, 2001. "About the reinterpretation of the Ghosh model as a price model," Working Papers hal-01527259, HAL.
  • Handle: RePEc:hal:wpaper:hal-01527259
    Note: View the original document on HAL open archive server: https://hal.science/hal-01527259
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    Keywords

    demand; economics; economic theory; management; input-output; management economics; supply; gestion; économie;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D46 - Microeconomics - - Market Structure, Pricing, and Design - - - Value Theory
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis

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