On the Relationship between the Supply-Driven and the Demand-Driven Input — Output Model
- 1 November 1989
- journal article
- research article
- Published by SAGE Publications in Environment and Planning A: Economy and Space
- Vol. 21 (11) , 1533-1539
- https://doi.org/10.1068/a211533
Abstract
In this paper, the relationship between the assumptions in the supply-driven and the demand-driven input-output model is discussed. A necessary and sufficient condition is given for the stability of the input coefficients, the output coefficients, and both coefficients. For both models, the effects of a demand pull on the total outputs and on the primary inputs are analytically expressed. Also, the effects of a supply push on the total outputs and on the final outputs are expressed, again for both models. In general, the assumption of fixed input coefficients in the demand-driven model does not hold, but computations are still based on it. A necessary and sufficient condition is given for the correctness of the computed total outputs, both for a demand pull and a supply push. Similar results are obtained for the supply-driven input — output model.Keywords
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