Economics at your fingertips  

Demand-Driven and Supply-Sided Input–Output Models

Fidel Aroche Reyes () and Marco Antonio Marquez Mendoza ()
Additional contact information
Marco Antonio Marquez Mendoza: Universidad Nacional Autónoma de México

Journal of Quantitative Economics, 2021, vol. 19, issue 2, No 4, 267 pages

Abstract: Abstract In the demand-driven open input–output model, output is determined by final demand, given the production technology in every industry. On the contrary, in the supply-sided version, value added determines the level of output and producers must induce sales in order to achieve a desired level of income. This latter version of the model has been criticised and even rejected on its implausibility, its difficult interpretation and its bizarre implications, among other aspects. This paper argues that the supply-side model is not logically, mathematically or otherwise at odds with Leontief’s arguments. Rejection of the model is a matter of theoretical reading.

Keywords: Input–output model; Demand-driven model; Supply-driven model; Leontief; Ghosh; Balanced growth (search for similar items in EconPapers)
JEL-codes: B23 C67 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from

DOI: 10.1007/s40953-020-00229-5

Access Statistics for this article

Journal of Quantitative Economics is currently edited by Dilip Nachane and P.G. Babu

More articles in Journal of Quantitative Economics from Springer, The Indian Econometric Society (TIES) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

Page updated 2022-09-23
Handle: RePEc:spr:jqecon:v:19:y:2021:i:2:d:10.1007_s40953-020-00229-5