Search results for "Supply-driven"
showing 6 items of 6 documents
The variations of technical and allocation coefficients : are they comparable really ?
1995
Two great alternative hypothesis are possible in the analysis input-output : the model may be demand-driven (Leontief) or supply-driven (Ghosh). To test the consistency of these hypotheses on the long term, this paper studies the interest of proportional filters (comparison of column or row coefficients) and the interest of the biproportional filter for the temporalcomparison of input-output matrices. An application is proposed for France between 1980 and 1993. The result is the following : in the long period, there are more sectors supply-driven than demand-driven (i.e. row coefficients are less variable than column coefficients for the majority of the sectors). (FRE) Deux grandes hypothès…
A biproportional filter to compare technical and allocation coefficient variations
1997
International audience; In input-output analysis there are two alternate possibilities between Leontief's mechanism (fixed technical coefficients) and Ghosh's mechanism (fixed allocation coefficients). Testing the long term consistency of these mechanisms entails comparing input-output matrices over time. This paper challenges the value of proportional filters (separate comparison of column and row coefficients) and introduces the biproportional filter which allows simultaneous comparison of column and rows. An application is proposed using French input-output tables for 1980 and 1993. The stability of column coefficients cannot be taken for granted and generally, for any sector, both rows …
On the Fallacy of Forward Linkages: A Note in the Light of Recent Results
2009
Following on from de Mesnard’s (2009) radical criticism of the Ghosh supply-driven model, this paper draws the dramatic consequences for the widespread use of forward linkages in input-output analysis applied to regional science: the practice must be abandoned. The arguments are based on three points: (i) it is impossible simultaneously to choose the Leontief model for the backward effects and the Ghosh model for the forward effects; (ii) it is impossible simultaneously to consider a production function of complementary inputs (Leontief) and a production function of perfectly substitutable inputs (Ghosh); and most importantly (iii) price effects and output effects remain inextricably mixed …
Biproportion et offre dominante (A propos de l'article d'André Torre ‘Sur la signification théorique du modèle d'offre multisectoriel')
1996
One replies here to partisans of the reject of the supply-driven model in input-output analysis and especially to A. Torre (Revue Economique, 5, 44, 951-970). First of all, demand-driven hypothesis (Leontief) and supply-driven hypothesis (Ghosh) are symmetrical and incompatible, what forbidden to reject the second to the motive that it depends on the first. Secondly, the results earlier obtained for France of 1970 to 1985 from the method of the biproportionnal filter show that there is so much instability in the long term in the columns than in the rows of the flow matrix. Thirdly, the assimilation of the usage of allocation coefficients to the adoption of the supply-side model is excessive.
Is the Ghosh model interesting?
2009
International audience; The overall value of the Ghosh model is appraised. Its treatment of quantities and prices is scrutinized by examining the variant with data in quantities and prices, and the variant with data in value and price indexes. The methodology involves returning to the accounting equations and shows that: (i) the Ghosh model offers solutions of limited interest, being incapable of providing prices or price indexes separately from quantities; (ii) what is taken to be the equation of Ghosh's value model is actually that of Ghosh's physical model; (iii) the Ghosh model may serve for cost-push exercises, but the dual of the Leontief model performs the same task in a much simpler…
True prices, latent prices and the Ghosh model : some inconsistencies
2001
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 mo…