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Revisiting the original Ghosh model: Can it be made more plausible?
Economic Systems Research (2011)
  • Ana-Isabel Guerra, Universidad Pablo de olavide
  • Ferran Sancho, Universitat Autonoma de Barcelona
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 Date
September 1, 2011
Citation Information
Ana-Isabel Guerra and Ferran Sancho. "Revisiting the original Ghosh model: Can it be made more plausible?" Economic Systems Research Vol. 23 Iss. 3 (2011)
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