Leontief versus Ghosh : two faces of the same coin
Manresa, Antonio, 1954- (Universitat de Barcelona. Departament de Teoria Econòmica)
Sancho Pifarré, Ferran (Universitat Autònoma de Barcelona. Departament d'Economia i d'Història Econòmica)
Xarxa de Referència en Economia Aplicada (XREAP)

Imprint:	Xarxa de Referència en Economia Aplicada (XREAP) 2012
Description:	34 p.
Abstract:	In this paper we explore the sectoral and aggregate implications of some endogeneization rules (i. e. on value-added and final demand) which have been common in the Leontief model and have been recently proposed in the Ghosh model. We detect that these rules may give rise in both models to some allegedly pathological behavior in the sense that sectoral or aggregate output, very often, may not follow the logical and economically expected direct relationship with some underlying endogenous variables-namely, output and value-added in the Ghosh model and output and consumption in the Leontief model. Because of the common mathematical structure, whatever is or seems to be pathological in the Ghosh model also has a symmetric counterpart in the Leontief model. These would not be good news for the inner consistency of these linear models. To avoid such possible inconsistencies, we propose new and simple endogeneization rules that have a sound economic interpretation.
Rights:	Aquest document està subjecte a una llicència d'ús Creative Commons. Es permet la reproducció total o parcial i la comunicació pública de l'obra, sempre que no sigui amb finalitats comercials, i sempre que es reconegui l'autoria de l'obra original. No es permet la creació d'obres derivades.
Language:	Anglès
Series:	Xarxa de Referència en Economia Aplicada (XREAP). Documents de treball de la Xarxa de Referència en Economia Aplicada (XREAP)
Series:	XREAP ; 2012-18
Document:	Working paper
Subject:	Comptabilitat nacional ; Models economètrics ; Demand-driven model ; Supply driven model ; Extended linear models ; Social accounting ; Econometric models

34 p, 334.9 KB

The record appears in these collections:
Research literature > Studies