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

1 June 1988

journal article
research article
Published by SAGE Publications in Environment and Planning A: Economy and Space

Vol. 20 (6) , 811-816
https://doi.org/10.1068/a200811

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.

Keywords

This publication has 5 references indexed in Scilit:

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