A follow-up note on the plausibility of the Leontief and Ghosh closed models

Antonio Manresa, Ferran Sancho

Research output: Contribution to journalArticleResearch

1 Citation (Scopus)

Abstract

© 2019, © 2019 The International Input--Output Association. Herein we consider Leontief and Ghosh models that partly endogenize both part of final demand and part of value-added. We use Osterhaven's [(2012) Adding Supply-driven Consumption Makes the Ghosh Model Even More Implausible. Economic Systems Research, 24, 101–111] numerical three-sector example to show that anomalies of the sort he finds for a Ghosh closed model can also be found in the closed version of a Leontief model. By assuming, as Oosterhaven did, that aggregate exogenous resources are fixed, we obtain mirror results to his in a Ghosh setting, albeit in the more-traditional Leontief instance. Such numerical anomalies for the three-sector case turn out to be generic to both partially closed models for any 2×2 input–output model. A proof for the general n×n case remains to be uncovered.
Original languageEnglish
JournalEconomic Systems Research
DOIs
Publication statusPublished - 1 Jan 2019

Keywords

  • closed linear models
  • Demand-driven model
  • supply-driven model

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