About the reinterpretation of the Ghosh model as a price model

Louis de Mesnard (1)

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

The Ghosh model assumes that, in an input-output framework, each commodity is sold to each sector in fixed proportions. This model is strongly criticized because it seems implausible in the traditional input-output field. To answer to these critics, Dietzenbacher stresses that it can be reinterpreted as a price model: the Leontief price model is equivalent to the Ghosh model when this one is interpreted as a price model. This paper shows that the interpretation of the Ghosh model as a price model cannot be accepted because Dietzenbacher makes a strong assumption, dichotomy, while the Ghosh model does not determine prices.

Mots clés: demand; economics; economic theory; management; input-output; management economics; supply

Mots clés: gestion; économie

Domaines: Economies et finances

Louis de Mesnard. About the reinterpretation of the Ghosh model as a price model. [Research Report] Laboratoire d'analyse et de techniques économiques(LATEC). 2001, 11 p., ref. bib. : 10 ref. ⟨hal-01527259⟩