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Leontief Price Model×Ghosh Supply-Driven Model×
FieldEconomicsEconomics
FamilyProcess / pipelineProcess / pipeline
Year of origin19361958
OriginatorWassily Leontief (price dual formalized by Miller & Blair)Ambica Ghosh
TypeLinear cost-push price model dual to the quantity input-output systemSupply-driven linear inter-industry model using allocation coefficients
Seminal sourceMiller, R. E., & Blair, P. D. (2009). Input-Output Analysis: Foundations and Extensions (2nd ed.). Cambridge University Press. ISBN: 9780521739023Ghosh, A. (1958). Input-output approach in an allocation system. Economica, 25(97), 58–64. DOI ↗
AliasesI-O Price Model, Dual Input-Output Model, Cost-Push Price Model, Input-Output Price EquationGhosh Model, Supply-Side Input-Output Model, Allocation Coefficient Model, Output-Side I-O Model
Related44
SummaryThe 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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ScholarGateCompare methods: Leontief Price Model · Ghosh Supply-Driven Model. Retrieved 2026-06-24 from https://scholargate.app/en/compare