*Is the Ghosh Model Interesting?
Louis De Mesnard
University of Burgundy and CNRS; University of Illinois at Urbana-Champaign - Regional Economics, Application Labratory (REAL)
Journal of Regional Science, Vol. 49, Issue 2, pp. 361-372, May 2009
The overall value of the Ghosh model is appraised. Its treatment of quantities and prices is scrutinized by examining the variant with data in quantities and prices, and the variant with data in value and price indexes. The methodology involves returning to the accounting equations and shows that: (i) the Ghosh model offers solutions of limited interest, being incapable of providing prices or price indexes separately from quantities; (ii) what is taken to be the equation of Ghosh's value model is actually that of Ghosh's physical model; (iii) the Ghosh model may serve for cost-push exercises, but the dual of the Leontief model performs the same task in a much simpler and more natural way; and (iv) Cronin's mixed models do not actually mix Leontief and Ghosh hypotheses.
Number of Pages in PDF File: 12Accepted Paper Series
Date posted: April 27, 2009
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