6533b7d3fe1ef96bd12610d9

RESEARCH PRODUCT

True prices, latent prices and the Ghosh model : some inconsistencies

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Beside the traditional Leontief demand-driven model, there is the Ghosh supply-driven model. This paper explores the typology of the possible models: demand driven models versus supply driven models, true prices versus latent (or index) prices, coefficients in physical terms versus coefficients in value. This demonstrates that the supply-driven model offers results of limited interest, being incapable to separate quantities and prices; and it is only when a very strange hypothesis is chosen -- demand prices, controlled by the buyer -- that the supply-driven model gives an interesting result with a separation between quantities and prices in the solution, becoming the dual of the Leontief model..