Revisiting The Original Ghosh Model: Can It Be More Plausible?

Ana-Isabel Guerra () and Ferran Sancho
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Ana-Isabel Guerra: Department of Economics, Universidad Pablo de Olavide

No 11.02, Working Papers from Universidad Pablo de Olavide, Department of Economics

Abstract: We reconsider in this paper the alleged implausibility of Ghosh’s model and we do so reformulating the model to incorporate an alternative closure rule. Our proposed closure rule is in line with the original allocation rules defined by A. Ghosh. The closure solves, to some extent, the implausibility problem that was pointed out by Oosterhaven for then value–added is correctly computed and responsive to allocation changes resulting from supply shocks. Some numerical examples illustrate the sectoral and aggregate consistency of the allocation equilibrium.

Keywords: Multi-sectoral Input-Output Models; Market Economy; Planned Economy (search for similar items in EconPapers)
JEL-codes: C63 C67 P2 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2011-02
New Economics Papers: this item is included in nep-cmp
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

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Persistent link: https://EconPapers.repec.org/RePEc:pab:wpaper:11.02

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