Revisiting the original ghosh model: Can it be made more plausible?

Ana Isabel Guerra, Ferran Sancho

Research output: Contribution to journalArticleResearchpeer-review

25 Citations (Scopus)

Abstract

We reconsider in this paper the alleged implausibility of Ghosh's model and we do so reformulating the model to incorporate an alternative closure rule. Our proposed closure rule is in line with the original allocation rules defined by A. Ghosh. The closure solves, to some extent, the implausibility problem that was pointed out by Oosterhaven, for then value-added is correctly computed and responsive to allocation changes resulting from supply shocks. Some numerical examples illustrate the sectoral and aggregate consistency of the allocation equilibrium. © 2011 The International Input-Output Association.
Original languageEnglish
Pages (from-to)319-328
JournalEconomic Systems Research
Volume23
DOIs
Publication statusPublished - 1 Sep 2011

Keywords

  • Market economy
  • Multi-sectoral input-output models
  • Planned economy

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