On the consistency of the commodity-based technology in make-use model of production

Louis de Mesnard (1)

1 LATEC - Laboratoire d'Analyse et de Techniques Economiques [UMR 5118]

In the Stone make-use model, the industry-based technology is consistent because his solution can be explained in variational terms inside a circuit. However, the alternative model, the commodity-based technology, is not economically realistic: it never corresponds to a circuit, even if an exact solution can be found when the number of commodities is equal to the number of industries. This model hesitates between a supply-driven and a demand-driven model but when it is converted into a true supply-driven one, it retrieves a consistency.

Mots clés: Supply; Matrice; Management economics; Demand; Economics; Economic theory; Input-output

Mots clés: Gestion; Economie; Management

Domaines: Economies et finances

Louis de Mesnard. On the consistency of the commodity-based technology in make-use model of production. [Research Report] Laboratoire d'analyse et de techniques économiques(LATEC). 2001, 8 p. ⟨hal-01526976⟩