About the Ghosh Model : Clarifications

We examine the consistency of the Ghosh supply-driven input-output model (SM) by respect to the traditional Leontief demand-driven input-output model (LM); the variants considered are: primal and dual, quantity and value; input prices are not considered. SM offers solutions of limited interest, being incapable to separate quantities and prices or values and price indexes. Comparing the dual value SM to the primal of LM is wrong. Even if the agents are forced to buy inputs in SM, the interpretation of SM as a centrally planned economy must be rejected but SM may serve for modeling interfirm relations or analyzing the structural interindustry change when the production function is not specified. SM may also serve for cost-push exercises but the dual of LM performs the same task in a much simpler and natural way. Cronin's mixed models do not mix demand-driven and supply-driven hypotheses actually