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Stability of Supply Coefficients and Consistency of Supply-Driven and Demand-Driven Input—Output Models

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  • S Deman

    (Department of Economics, University of Rajasthan, Jaipur, India 302004)

Abstract

The motivation behind this paper is to review the debate on inconsistencies in and growing concern over the validity of a supply-driven model as an alternative to the Leontief demand-driven model for interindustry analysis. Both the Leontief demand-driven and the Ghoshian alternative supply-constrained allocation specification are critically discussed. Various claims and counterclaims have been addressed in the literature available on this issue. A general condition is derived for consistency between the two approaches, and a theorem is stated in which greater confidence is provided in the use of the supply-driven model for interindustry analysis.

Suggested Citation

  • S Deman, 1988. "Stability of Supply Coefficients and Consistency of Supply-Driven and Demand-Driven Input—Output Models," Environment and Planning A, , vol. 20(6), pages 811-816, June.
    • Handle: RePEc:sae:envira:v:20:y:1988:i:6:p:811-816
    DOI: 10.1068/a200811
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    Cited by:

    1. Louis de Mesnard, 1996. "Biproportion et offre dominante. A propos de l'article d'André Torre : "Sur la signification théorique du modèle d'offre multisectoriel."," Revue Économique, Programme National Persée, vol. 47(1), pages 167-175.

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