Revisiting the original Ghosh model: Can it be made more plausible?Economic Systems Research (2011)
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.
Publication DateSeptember 1, 2011
Citation InformationAna-Isabel Guerra and Ferran Sancho. "Revisiting the original Ghosh model: Can it be made more plausible?" Economic Systems Research Vol. 23 Iss. 3 (2011)
Available at: http://works.bepress.com/ferran_sancho/48/