Stability of Supply Coefficients and Consistency of Supply-Driven and Demand-Driven Input—Output Models

S Deman
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S Deman: Department of Economics, University of Rajasthan, Jaipur, India 302004

Environment and Planning A, 1988, vol. 20, issue 6, 811-816

Abstract: The motivation behind this paper is to review the debate on inconsistencies in and growing concern over the validity of a supply-driven model as an alternative to the Leontief demand-driven model for interindustry analysis. Both the Leontief demand-driven and the Ghoshian alternative supply-constrained allocation specification are critically discussed. Various claims and counterclaims have been addressed in the literature available on this issue. A general condition is derived for consistency between the two approaches, and a theorem is stated in which greater confidence is provided in the use of the supply-driven model for interindustry analysis.

Date: 1988
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Persistent link: https://EconPapers.repec.org/RePEc:sae:envira:v:20:y:1988:i:6:p:811-816

DOI: 10.1068/a200811

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