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| Leontief Price Model× | Ghosh Supply-Driven Model× | |
|---|---|---|
| Field | Economics | Economics |
| Family | Process / pipeline | Process / pipeline |
| Year of origin≠ | 1936 | 1958 |
| Originator≠ | Wassily Leontief (price dual formalized by Miller & Blair) | Ambica Ghosh |
| Type≠ | Linear cost-push price model dual to the quantity input-output system | Supply-driven linear inter-industry model using allocation coefficients |
| Seminal source≠ | Miller, R. E., & Blair, P. D. (2009). Input-Output Analysis: Foundations and Extensions (2nd ed.). Cambridge University Press. ISBN: 9780521739023 | Ghosh, A. (1958). Input-output approach in an allocation system. Economica, 25(97), 58–64. DOI ↗ |
| Aliases | I-O Price Model, Dual Input-Output Model, Cost-Push Price Model, Input-Output Price Equation | Ghosh Model, Supply-Side Input-Output Model, Allocation Coefficient Model, Output-Side I-O Model |
| Related | 4 | 4 |
| Summary≠ | The Leontief price model is the cost-side dual of the quantity input-output system: instead of asking how much each sector must produce to meet final demand, it asks what unit price each sector must charge to cover its intermediate-input costs plus its primary-input (value-added) payments. Solving the dual equation p' = p'A + v' gives p' = v'(I − A)^{-1}, so the same Leontief inverse that propagates quantities also propagates costs, making the model the standard tool for tracing how a change in wages, taxes, or imported-input prices pushes through the entire price structure. | The Ghosh model is the supply-side counterpart to the Leontief demand-driven input-output system, introduced by Ambica Ghosh in 1958. Rather than fixing the recipe of inputs per unit of output, it fixes allocation coefficients — the share of each sector's output sold to every downstream buyer — and asks how a change in the supply of primary inputs (value added) propagates forward to total output. Solving x' = x'B + w' gives x' = w'(I − B)^{-1}, where the Ghosh inverse G = (I − B)^{-1} plays the forward-looking role that the Leontief inverse plays for demand. |
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