On the fallacy of forward linkages: A note in the light of recent results
Following on from de Mesnard’s (2009) radical criticism of the Ghosh supply-driven model, this paper draws the dramatic consequences for the widespread use of forward linkages in input-output analysis applied to regional science: the practice must be abandoned. The arguments are based on three points: (i) it is impossible simultaneously to choose the Leontief model for the backward effects and the Ghosh model for the forward effects; (ii) it is impossible simultaneously to consider a production function of complementary inputs (Leontief) and a production function of perfectly substitutable inputs (Ghosh); and most importantly (iii) price effects and output effects remain inextricably mixed in the Ghosh model, so precluding its use for analyzing forward effects on quantities or prices.
|Date of creation:||2009|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 00 333 80 39 54 41
Fax: 00 333 80 39 54 43
Web page: http://www.leg.u-bourgogne.fr/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:lat:legeco:e2009-05. 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: (Odile Ferry)The email address of this maintainer does not seem to be valid anymore. Please ask Odile Ferry to update the entry or send us the correct address
If references are entirely missing, you can add them using this form.