Article
A follow-up note on the plausibility of the Leontief and Ghosh closed models
Economic Systems Research
(2020)
Abstract
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.
Keywords
- Demand-driven model,
- supply-driven model,
- closed linear models
Disciplines
Publication Date
August 12, 2020
DOI
https://doi.org/10.1080/09535314.2019.1650331
Citation Information
Antonio Manresa and Ferran Sancho. "A follow-up note on the plausibility of the Leontief and Ghosh closed models" Economic Systems Research Vol. 32 Iss. 1 (2020) p. 166 - 172 Available at: http://works.bepress.com/ferran_sancho/77/