A follow-up note on the plausibility of the Leontief and Ghosh closed models
Manresa, Antonio 1954- (Universitat de Barcelona)
Sancho Pifarré, Ferran (Universitat Autònoma de Barcelona)

Date:	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.
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Language:	Anglès
Document:	Article ; recerca ; Versió acceptada per publicar
Subject:	Closed linear models ; Demand-driven model ; Supply-driven model
Published in:	Economic Systems Research, Vol. 32 Núm. 1 (2020) , p. 166-172, ISSN 1469-5758

DOI: 10.1080/09535314.2019.1650331

Postprint 10 p, 763.3 KB

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