The Demand Driven and the Supply-Sided Input-Output Models. Notes for the debate

Fidel Aroche Reyes and Marco Antonio Marquez Mendoza

MPRA Paper from University Library of Munich, Germany

Abstract: The demand-driven version of the open Input-Output model determines production as a function of final demand, given the production technology. On the contrary, in the supply-sided version, value added determines 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 the bases of its implausibility, its difficult interpretation and its bizarre implications. This paper argues however that the logic of the supply-side model is not mathematically at odds with Leontief’s arguments. Rejection of the model is a matter of theoretical interpretation

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: 2013-01, Revised 2014-07
New Economics Papers: this item is included in nep-hme
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/58488/2/MPRA_paper_58488.pdf original version (application/pdf)

Related works:
Working Paper: The Demand Driven and the Supply-Sided Input-Output Models. Notes for the debate (2013)
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: https://EconPapers.repec.org/RePEc:pra:mprapa:58488

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().